Q. Audit in depth is synonymous for
✅ Correct Answer: (B)
Completed audit
Audit Taxation MCQs and Notes
Q. An auditor who accepts an audit but does not possess the industry expertise of the business entity should
✅ Correct Answer: (A)
engage experts
Q. Which of the following is the most appropriate potential reaction of the auditor to his assessment that the risk of material misstatement due to fraud is high in relation to existence of inventory?
✅ Correct Answer: (D)
Perform analytical procedures.
Q. Auditing standards differ from audit procedures in that procedures relate to
✅ Correct Answer: (B)
acts to be performed
Q. Which of the following is not true about opinion on financial statements?
✅ Correct Answer: (C)
He is responsible for detection and prevention of frauds and errors in financial statements
Q. An auditor is liable for his annual audit of accounts o:
✅ Correct Answer: (C)
Owners
Q. Audit of a bank is generally conducted through:
✅ Correct Answer: (C)
Balance sheet audit
Q. Deduction under section 35-D is related to:
✅ Correct Answer: (A)
Preliminary Expenses
Q. Form 3-CB is used for :
✅ Correct Answer: (A)
Truth and fairness of Accounts.
Q. Deduction under section 80-HHE is related to :
✅ Correct Answer: (A)
Export of computer software, technical services outside India.