Auditing MCQs

Question 1

The main objective of Auditing is

Accepted Answer

To find out accuracy completeness and validity of accounts and documents

Answer

To detect errors and fraud

Answer

To prevent errors and fraud

Answer

All of the above

Question 2

The liability of the auditor can be

Accepted Answer

Civil or criminal

Answer

Only civil

Answer

Only criminal

Answer

Either civil or criminal

Question 3

The definite period of auditing is

Accepted Answer

1 financial year

Answer

2 financial years

Answer

3 financial years

Answer

5 financial years

Question 4

The main objective of an audit is

Accepted Answer

Depends on the type of audit

Answer

Expression of opinion

Answer

Detection and prevention of fraud and error

Answer

Both A and B

Question 5

Which of the point is not to be considered while checking, a voucher?

Accepted Answer

Credit period of payment

Answer

Name of party

Answer

Serial number of voucher

Answer

Accounting entry

Question 6

To be an auditor, a person must be an

Accepted Answer

Independent person

Answer

Employee

Answer

Employer

Answer

Accountant

Question 7

The report through which an auditor expresses his opinion on the financial statement is known as

Accepted Answer

Audit report

Answer

Cost report

Answer

Statutory report

Answer

Management report

Question 8

Choose the correct statement in reference to accounting standards., choose the correct statement:

Accepted Answer

All of the above

Answer

Accounting standards codify the generally accepted accounting principles

Answer

Accounting standards lay down the norms of accounting policies and practices by way of codes or guidelines

Answer

The main purpose of accounting standards is to provide information to the user on the basis of which the accounts have been prepared

Question 9

The auditor does not have to check the following while auditing salaries/wages

Accepted Answer

Payment has been made to all the employees on first of the month

Answer

Calculation of the salary

Answer

Whether the calculation was verified by department heads

Answer

Whether dues like PF, PT, TDS have been deducted and deposited