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This set of Practical Auditing Multiple Choice Questions & Answers (MCQs) focuses on Practical Auditing Set 5
Q1 | Examination of accounting records undertaken for a special purpose is called
- Auditing
- Internal check
- Investigation
- Internal control
Q2 | The prime importance of investigation on behalf of an individual or firm intending topurchase an existing business is to
- Ascertain value of asset
- Ascertain the earning capacity of the concern
- Estimation of value of good will
- Extend of liabilities
Q3 | Inflation of closing stock results is :-
- Inflation of loss
- Deflation of loss
- Inflation of profit
- Deflation of profit
Q4 | Inflation of profit is possible due to :
- Overvaluation of closing stock
- Overstating purchase
- Overstating opening stock
- Overstating expenses
Q5 | Charging excessive provision for depreciation results in
- Less profit
- More profit
- No change in profit
- No change in loss
Q6 | The main purpose of management audit is to
- Review the management operations
- Check arithmetical accuracy
- Prevent travel
- Prevent error
Q7 | Management audit is
- Compulsory
- Not compulsory
- Compulsory under Income Tax Act
- Compulsory under Indian Contract Act.
Q8 | Special resolution means -------------------
- 1/3 majority
- 2/3 majority
- ½ majority
- none
Q9 | Ordinary resolution means -----------------------
- 1/3 majority
- 2/3 majority
- More than 1/2
- none
Q10 | The chartered Accountants Act is in -----------------
- 1956
- 1959
- 1949
- none
Q11 | Section 633 of the companies Act deals with
- Liability of auditor
- Relief to the auditor
- Punishment to the auditor
- none
Q12 | Auditor is an --------------- of a shareholder
- Owner
- Agent
- Employer
- none
Q13 | Cost audit means audit of --------------- records
- Financial
- Cost
- Tax
- none
Q14 | Financial auditor submits reports to the ----------------
- Shareholder
- Board of director
- Employees
- none
Q15 | Cost auditor submits reports to the ---------------
- Share holder
- Board of directors
- Employees
- none
Q16 | --------------- audit is forward looking -
- Financial
- Cost
- Tax
- none
Q17 | Cost auditor of a company is -----------
- Chartered Accountant
- Cost Accountant
- Tax Accountant
- none
Q18 | Auditor finds that there is change in the method of valuation of stock whether he should
- Allow it
- Disallow it
- Allow it with a note to this effect
- none
Q19 | Audit under any statute in a country is called ------------------
- Final audit
- Internal audit
- Statutory audit
- none
Q20 | Books of Accounts are prepared and audited as per the provisions of the ---------------
- Income Tax Act,1961
- Companies Act 1956
- Chartered Accountants Act 1949
- none
Q21 | CAATTS is also known as -----------
- Cost And Accounts Treatments
- Computer Assisted Audit Tools and Techniques
- Classification and Accounting of Tax Tools
- none
Q22 | Auditor has got no lien on -------------
- Audit Note Nook
- Audit working papers
- Books to Accounts of Client
- none
Q23 | Statutory Report should be sent to registrar before ------------------- days of statutory meeting
- 30 days
- 14 days
- 21 days
- none
Q24 | The meeting held by the company with in a period of not less than one month and not morethan 6 months is called -------------
- Statutory
- Annual
- General
- none
Q25 | -------------------- audit is not a statuary requirement
- Management
- Financial
- Tax Audit
- none