Auditing MCQs

Assertion (A): Internal audit is required to be conducted by a qualified chartered accountant.
Reason (R): It is a tool of management.
Give the correct answer using the given option

A sale of Rs. 25,000 to A was entered as a sale to B.
This is an example of:

Consider the following elements:
1. Scope of audit
2. Validity of appointment
3. Knowledge about business
4. Instruction to client
5. Division of work among audit clerks
The correct sequence of these elements for the commencement of a new audit will be

Statement I: Energy audit is an indepth check of the amount of energy being utilised.
Statement II: Energy audit includes general and preliminary audit.

With reference to techniques of auditing, which of the following statement is correct?
(1) Routine checking means daily checking of books of accounts.
(2) Test checking should always be applied in cash book.
Select the correct answer using the option given below

Statement I: Management audit is a part of financial audit.
Statement II: Management audit is not compulsory under any law.

The auditor should state the reasons for his reservations in audit report and should try to quantify the effect on them. This should be done in case he has expressed-
(i) A qualified opinion
(ii) An unqualified opinion with emphasis of matter paragraph
(iii) An adverse opinion
(iv) A disclaimer of opinion

Companies (Auditor's Report) order is applicable from:

Which of the following is/are beneficiary(s) of cost audit?
1. Manager
2. Shareholders and investors
3. Society and consumers
4. Government
Select the correct answer: