Auditing Set 9
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This set of Auditing Multiple Choice Questions & Answers (MCQs) focuses on Auditing Set 9
Q1 | Civil liability of an auditor implies liability for
- misappropriation of cash
- misappropriation of goods
- fraud
- misfeasance
Q2 | An auditor is held criminally liable for
- Loss to his client
- Neglect of his duty
- Offence against statutory provisions
- Frauds
Q3 | An auditor is held liable under C.A Act 1949 for
- negligence
- misfeasance
- Professional misconduct
- breach of contract.
Q4 | __________ is a systematic examination of the books and records or a business.
- Auditing
- Vouching
- Verification
- Checking
Q5 | An audit which is compulsory by the law is __________.
- Government Audit
- Internal Audit
- Cost Audit
- Statutory Audit
Q6 | .Instruction of audit issued by controller and auditor general of India ________.
- Statutory audit
- Final Audit.
- Management audit
- Government audit
Q7 | Audit done by the employees of the business undertaking is called _______.
- Final audit
- Management Audit
- Government Audit
- Internal Audit
Q8 | This kind of audit is conducted generally between two annual audit ______.
- Internal Audit
- Interim audit
- Final Audit
- Continuous Audit
Q9 | Management audit otherwise called as _______.
- Final audit
- Efficiency Audit
- Cost Audit
- Cash audit
Q10 | Before the work of audit is commenced, the auditor plans out the whole of audit work iscalled _________.
- Audit Plan
- Audit Note
- Audit Programme
- Audit Control
Q11 | A number of checks and controls exercised in a business to ensure its efficient workingare known as ________.
- Internal Check
- Internal Control
- Internal Audit
- Interim Check
Q12 | A Voucher is a _______.
- Document is support of an entry made in books of accounts
- Invoice received from suppliers
- Receipt issued to a customer for cash
- Dispatch Receipt
Q13 | Voucher relates to _________.
- Cash receipt & payments, credit transactions
- Cash payment only
- Credit transactions only
- Cash receipt only
Q14 | Internal check is meant for ___________.
- Prevention of frauds
- Detection of frauds
- Helping audit is depth
- Detection of errors
Q15 | Purchase of machinery is a ____________.
- revenue receipt
- capital receipt
- capital expenditure
- revenue expenditure
Q16 | Sale of land is a __________.
- revenue receipt
- capital receipt
- capital expenditure
- revenue expenditure
Q17 | When a transaction has not been recorded in the books of account either wholly orpartially such errors are called as _________.
- errors of commission
- errors of omission
- compensating error
- error of principle
Q18 | Verification of the value of assets, liabilities, the balance of reserves, provision and theamount of profit earned or loss suffered a firm is called _________.
- continuous audit
- balance sheet audit.
- interim audit
- partial audit
Q19 | A sale of Rs. 50000 to Mr. A was entered as a sale to Mr. B. This is an example of what?
- Error of omission
- Error of commission
- Compensating error
- Error of principle
Q20 | Recording a transaction twice in the books of original entry is an error of __________.
- principle
- commission
- duplication
- omission
Q21 | Errors and frauds already committed can be discovered under the system of ________.
- internal audit, internal check, internal control
- external check
- statutory audit
- interim audit
Q22 | Treating revenue expenditure as capital expenditure is a case of _________.
- fraud
- misappropriation of cash
- misappropriation of goods
- manipulation of accounts
Q23 | /. Special audit is necessary for _________.
- inefficient concern
- processing concern
- trading concern
- manufacturing concern
Q24 | The first auditors appointed by head office ____________.
- for a period of one year
- for a period of two years
- for a period of three years
- till the conclusion of the first annual general meeting