Q. Goods sent on approval basis’ have been recorded as ‘Credit sales’. This is an example of……………………..
✅ Correct Answer: (A)
Error of principle.
Audit Taxation MCQs and Notes
Q. A sale of Rs. 50.000 to A was entered as a sale to B. This is an example of _
✅ Correct Answer: (B)
Error of commission.
Q. Professional judgment means a judgment taken by the auditor out of his ______ in an audit situation
✅ Correct Answer: (C)
Professional experience.
Q. Appropriateness means _______ of audit evidence.
✅ Correct Answer: (B)
Quality.
Q. The audit process is
✅ Correct Answer: (A)
special application of the scientific method of inquiry.
Q. The main object of an audit is
✅ Correct Answer: (D)
Depends on the type of Business
Q. An auditor is required to determine the ____ of his audit procedures according to the requirements of Standards of Auditing.
✅ Correct Answer: (B)
Nature ,timing and extent
Q. Compliance with the Standard of Auditing is the responsibility of
✅ Correct Answer: (C)
Auditor
Q. The evidence available to auditor is _______ in nature, rather _______ in nature.
✅ Correct Answer: (A)
pervasive, conclusive
Q. An independent audit is important to readers of financial statements because it
✅ Correct Answer: (C)
Objectively examines and reports on management's financial statements.