Auditing MCQs

Question 1

Instruction of audit issued by controller and auditor general of India . . . . . . . .

Accepted Answer

Government Audit

Answer

Statutory Audit

Answer

Final Audit

Answer

Management Audit

Question 2

Sale of land is a . . . . . . . .

Accepted Answer

capital receipt

Answer

revenue receipt

Answer

capital expenditure

Answer

revenue expenditure

Question 3

Normally a company auditor is appointed by:

Accepted Answer

Shareholders

Answer

Central government

Answer

Board of directors

Answer

Company law board

Question 4

Which of the following is the function of an auditor?

Accepted Answer

All of the above

Answer

To check the mathematical correctness of the account

Answer

Finding and preventing errors

Answer

Finding and preventing deficiencies

Question 5

Test checking reduces-

Accepted Answer

Work of an auditor

Answer

Responsibility of an auditor

Answer

Rights of an auditor

Answer

Expenses of an auditor

Question 6

Verification of the value of assets, liabilities, the balance of reserves, provision and the amount of profit earned or loss suffered a firm is called . . . . . . . .

Accepted Answer

balance sheet audit

Answer

continuous audit

Answer

interim audit

Answer

partial audit

Question 7

Which of the following controls would ensure that securities are not lost, stolen or diverted?

Accepted Answer

All of the above

Answer

Establish physical barriers over investment securities

Answer

Maintain files of authorized signatures

Answer

Segregate investment approval from accounting and from custody of securities

Question 8

Voucher relates to . . . . . . . .

Accepted Answer

Cash receipt & payments, credit transactions

Answer

Cash payment only

Answer

Credit transactions only

Answer

Cash receipt only

Question 9

Control risk is assessed at:

Accepted Answer

Financial statement assertion level

Answer

Overall financial statements level

Answer

Fraud risk factor level

Answer

Control environment level