Q. The first auditor or auditors are appointed by :
✅ Correct Answer: (C)
Board of Directors.
Auditing MCQs and Notes
Q. Which of the following has a broader scope?
✅ Correct Answer: (D)
None of the above.
Q. ............ means “proving the truth or confirmation”
✅ Correct Answer: (B)
Verification
Q. ……………….. Starts where …………….. Ends
✅ Correct Answer: (B)
Auditing, accounting
Q. Inspection report/receiving report supports entries in
✅ Correct Answer: (B)
Purchase book and sales return book
Q. While observing a client’s annual physical inventory, an auditor conducted test counts for certain test counts were higher than the recorded quantities in the client’s perpetual records. This situation could be the result of the client’s failure to record –
✅ Correct Answer: (B)
Sales returns
Q. Which of the following statement is not true regard to auditor’s attendance at stock taking?
✅ Correct Answer: (C)
If inventory is material, even when the auditor is not placing reliance on the physical verification by the management, he should attend it