Auditing MCQs

Question 1

For what minimum period should audit working papers be retained by audit firm?

Accepted Answer

For a period auditor opines them to be useful in servicing the client

Answer

For the time period the entity remains a client of the audit firm

Answer

For a period of ten years

Answer

For the period the audit firm is in existence

Question 2

Company auditing was first made compulsory in India, in

Accepted Answer

1913

Answer

1894

Answer

1949

Answer

1956

Question 3

The auditor's report alongwith the annual accounts is given

Accepted Answer

Statutory auditor

Answer

Internal auditor

Answer

Government auditor

Answer

Secreterial auditor

Question 4

Which of the following is not included under the powers and the rights of an auditor in the companies act, 1956?

Accepted Answer

Right to call the general meeting

Answer

Right to see the books of accounts

Answer

Right to attend the general meeting

Answer

Right to receive information of general meeting

Question 5

A small sole business generally does not require auditing because

Accepted Answer

It is not mandatory by law

Answer

Its area is limited

Answer

Its owner has complete control over it

Answer

All of these

Question 6

An audit which is compulsory by the law is . . . . . . . .

Accepted Answer

Statutory Audit

Answer

Government Audit

Answer

Internal Audit

Answer

Cost Audit

Question 7

If a casual vacancy in the office of auditor arises by his resignation it should only be filled by the company in a . . . . . . . .

Accepted Answer

General meeting

Answer

Board meeting

Answer

Extraordinary general meeting

Answer

Annual general meeting

Question 8

"Auditor is a watch-dog and not a blood-bound" was a remark made in the case of:

Accepted Answer

Kingston Cotton Mills Ltd, 1896

Answer

The London Oil Storage Co. Ltd, 1904

Answer

London and General Bank, 1895

Answer

Delightful Cigarette Co. Ltd, 1943

Question 9

Tests of control are not concerned with:

Accepted Answer

Designing of controls

Answer

Existence of controls

Answer

Effectiveness of controls

Answer

Continuity of controls