Auditing MCQs

M

Mr. Dubey • 51.67K Points
Coach

Q 31. Undervaluation of stock is –

(A) Technical error
(B) Compensatory error
(C) Error of principle
(D) none of these

M

Mr. Dubey • 51.67K Points
Coach

Q 32. Vouching implies –

(A) Inspection of receipts
(B) Examination of vouchers to check authenticity of records
(C) Surprise checking of accounting records
(D) Examining the various assets

M

Mr. Dubey • 51.67K Points
Coach

Q 33. Errors of omission are –

(A) Technical errors
(B) Error of principle
(C) Compensating error
(D) none of these

M

Mr. Dubey • 51.67K Points
Coach

Q 34. A company auditor should see that the dividend is paid –

(A) After charging depreciation
(B) Without charging depreciation
(C) Out of capital
(D) None of the above.

M

Mr. Dubey • 51.67K Points
Coach

Q 35. Interim audit refers to –

(A) Examination of accounts continuously
(B) Examination of accounts intermittently
(C) Audit work to find out & check interim profits of a company
(D) Carrying on audit for bonus purposes at the end of year

M

Mr. Dubey • 51.67K Points
Coach

Q 36. The audit program is prepared by –

(A) The auditor
(B) The client
(C) The audit assistants
(D) Auditor & his assistants

M

Mr. Dubey • 51.67K Points
Coach

Q 37. In comparison to the independent auditor an internal auditor is more likely to be concerned with –

(A) Cost accountancy system
(B) Internal control system
(C) Legal compliance
(D) Accounting system

M

Mr. Dubey • 51.67K Points
Coach

Q 38. Sale of Rs.50,000 to ‘A’ was entered as a sale to ‘B’. This is an example of –

(A) Error of omission
(B) Error of commission
(C) Compensating error
(D) Error of Principle.

M

Mr. Dubey • 51.67K Points
Coach

Q 39. ___ is documentary evidence by which the accuracy in the books of accounts may be proved.

(A) Cheque
(B) Receipt
(C) Voucher
(D) Statement

M

Mr. Dubey • 51.67K Points
Coach

Q 40. Who among the following can be appointed as the auditor of company?

(A) A partner or the director of the company
(B) A person of unsound mind
(C) Mr. ‘Y’ who owes Rs.500 to company
(D) Mr. ‘Z’ who holds the ‘CA’ Certificate

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