Auditing — Part 2 MCQs with Explanations

Only 2 is the correct answer to “Which industries fall under strategic area? 1. Industries related to equipments for safety and power generation. 2. Electricity, road and steel industries. 3. Industries related to railway and mineral products. 4. Health and education related industry. Select the correct answer:”. This question is standard in competitive examination syllabi for Auditing.

Continuous audit is the correct answer to “The audit which is performed by a statutory auditor throughout the year is known as:”. This question is standard in competitive examination syllabi for Auditing.

Both 3 and 4 is the correct answer to “Which of the following statement(s) is/are true? 1. Audit can be done by any person. 2. Auditing is guarantee of 100% correctness. 3. Errors can be detected and prevented from auditing. 4. Auditing is the examination of books and statements.”. This question is standard in competitive examination syllabi for Auditing.

He is responsible for work performed by the assistants is the correct answer to “When an auditor delegates work to his assistants, then”. This question is standard in competitive examination syllabi for Auditing.

Opinion is the correct answer to “The auditor gives in his report his”. This question is standard in competitive examination syllabi for Auditing.

An audit which is generally conducted in between two annual audits is the correct answer to “Interim audit refers to:”. This question is standard in competitive examination syllabi for Auditing.

Central Government is the correct answer to “To whom special audit report is addressed”. This question is standard in competitive examination syllabi for Auditing.

All of the above is the correct answer to “The beneficiary(s) of audit report is/are 1. Creditor 2. Income tax authority 3. Director 4. Government Select the correct answer:”. This question is standard in competitive examination syllabi for Auditing.

All of the above is the correct answer to “An analysis of fixed assets account has revealed possibility of unrecorded sale of plant and machinery. Which of the following audit procedures may be adopted to discover it”. This question is standard in competitive examination syllabi for Auditing.

All of the above is the correct answer to “Which of the following is/are beneficiary(s) of cost audit? 1. Manager 2. Shareholders and investors 3. Society and consumers 4. Government Select the correct answer:”. This question is standard in competitive examination syllabi for Auditing.

Client is the correct answer to “Voucher should be addressed to the . . . . . . . .”. This question is standard in competitive examination syllabi for Auditing.

All of the above is the correct answer to “In order to audit petty cash expenses, the auditor has to check”. This question is standard in competitive examination syllabi for Auditing.

Kingston cotton mills case is the correct answer to “An auditor is a watchdog but not a bloodhound. This statement has been given in decision of which case”. This question is standard in competitive examination syllabi for Auditing.

To find out accuracy completeness and validity of accounts and documents is the correct answer to “The main objective of Auditing is”. This question is standard in competitive examination syllabi for Auditing.

Civil or criminal is the correct answer to “The liability of the auditor can be”. This question is standard in competitive examination syllabi for Auditing.

1 financial year is the correct answer to “The definite period of auditing is”. This question is standard in competitive examination syllabi for Auditing.

Depends on the type of audit is the correct answer to “The main objective of an audit is”. This question is standard in competitive examination syllabi for Auditing.

Credit period of payment is the correct answer to “Which of the point is not to be considered while checking, a voucher”. This question is standard in competitive examination syllabi for Auditing.

Independent person is the correct answer to “To be an auditor, a person must be an”. This question is standard in competitive examination syllabi for Auditing.

Audit report is the correct answer to “The report through which an auditor expresses his opinion on the financial statement is known as”. This question is standard in competitive examination syllabi for Auditing.

All of the above is the correct answer to “Choose the correct statement in reference to accounting standards., choose the correct statement:”. This question is standard in competitive examination syllabi for Auditing.

Payment has been made to all the employees on first of the month is the correct answer to “The auditor does not have to check the following while auditing salaries/wages”. This question is standard in competitive examination syllabi for Auditing.

All of these is the correct answer to “The step(s) involved in conducting system audit is/are”. This question is standard in competitive examination syllabi for Auditing.

Agent of the shareholders is the correct answer to “The auditor, in general, is an”. This question is standard in competitive examination syllabi for Auditing.

The conclusion of first annual general meeting is the correct answer to “The term of the auditorship of first auditor would be from the date of appointment till:”. This question is standard in competitive examination syllabi for Auditing.

Environmental audit is the correct answer to “In which audit, the examination of the effects of air emission, water and soil pollution, landscape etc is done”. This question is standard in competitive examination syllabi for Auditing.

Institute of Chartered Accountants of India is the correct answer to “The Accounting Standard Board was set up by”. This question is standard in competitive examination syllabi for Auditing.

Verify and report on the state of affairs of the business is the correct answer to “The primary objective of an audit is to”. This question is standard in competitive examination syllabi for Auditing.

Examination of physical existence and valuation of assets is the correct answer to “Verification refers to”. This question is standard in competitive examination syllabi for Auditing.

Auditing is the correct answer to “. . . . . . . . is a systematic examination of the books and records or a business.”. This question is standard in competitive examination syllabi for Auditing.

1, 2 and 3 is the correct answer to “Which of the following pairs are correctly matched? 1. Test Checking ⇔ Random checking 2. Internal Check ⇔ A system of automatic checking 3. Internal Control ⇔ Includes internal check and internal audit 4. Investigation ⇔ General examination of all accounting records Select the correct answer:”. This question is standard in competitive examination syllabi for Auditing.

To test procedures for distributing pay cheques is the correct answer to “An auditor conducts a surprise check on the pay day (i.e.) the day wages and salaries are paid. The primary purpose of this audit procedure is:”. This question is standard in competitive examination syllabi for Auditing.

Board of directors is the correct answer to “Management audit is ordered by the”. This question is standard in competitive examination syllabi for Auditing.

Credit notes, inspection report and inward return notes is the correct answer to “In case of sales return, the auditor should examine which documents”. This question is standard in competitive examination syllabi for Auditing.

All of these is the correct answer to “Which of the following is/are the object(s) of cost audit for organisations”. This question is standard in competitive examination syllabi for Auditing.

Error of commission is the correct answer to “A sale of Rs. 30,000 to A was entered as a sale to B. This is an example of”. This question is standard in competitive examination syllabi for Auditing.

Balance sheet audit is the correct answer to “The verification of the value of assets, liabilities, balance of reserves, provision and the amount of profits earned or loss suffered is called . . . . . . . .”. This question is standard in competitive examination syllabi for Auditing.

a-3, b-2, c-4, d-1 is the correct answer to “Match the following in the term of Assertions and Explanation : List I (Assertions) List II (Explanations) a. Cut-off 1. Assets and liabilities exist b. Classification 2. Transactions and events have been recorded in proper accounts c. Occurrence 3. Transactions and events have been recorded in the correct accounting period d. Existence 4. Transactions and events that have been recorded, have occurred and pertain to the entity”. This question is standard in competitive examination syllabi for Auditing.

Management is the correct answer to “An internal auditor is appointed by”. This question is standard in competitive examination syllabi for Auditing.

To gather sufficient appropriate evidence is the correct answer to “Which of the following best describes the primary purpose of audit programme preparation”. This question is standard in competitive examination syllabi for Auditing.