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This set of Practical Auditing Multiple Choice Questions & Answers (MCQs) focuses on Practical Auditing Set 7
Q1 | Internal audit is conducted
- Periodically
- Throughout the year
- Once in a year
- none
Q2 | The amount of application money received shall be deposited in a scheduled bankuntil________
- Annual general meeting
- General meeting
- Certificate to commencement obtained
- none
Q3 | Amount received as premium can be used to ___________
- Purchase Assets
- Pay of liabilities
- Issue bonus shares
- none
Q4 | The auditors are liable under
- Companies Act Only
- Income Tax Act Only
- All above
- none
Q5 | The maximum number of audit assignment an auditor can accept is limited to -------------- companies
- 10
- 15
- 20
- none
Q6 | Auditors can be appointed by -------------- when the shareholders fail to appoint auditors at thegeneral meeting
- Board of directors
- Central government
- Company Low board
- none
Q7 | The examinations of financial transactions with supporting evidences is called
- Verification
- Vouching
- Auditing
- none
Q8 | Which among the following is an example of intangible asset?
- Goodwill
- Patents
- All of these
- none
Q9 | Which of the following is not an item current asset?
- Stock
- Sundry debtors
- Furniture
- none
Q10 | The term inventories stands for
- Raw materials
- Work in progress
- All of these
- none
Q11 | Sales day book is used for recording
- Credit sales
- Cash sales
- All sales
- none
Q12 | --------------- audit is more suitable for small business houses
- Continuous
- Annual
- Partial
- none
Q13 | Vouching is an examination of ----------- to ascertain the accuracy and authenticity of transactions inthe book of accounts
- Audit files
- Audit note book
- Documents
- none
Q14 | --------------- is a written plan containing details with regard to the conduct of a particular audit
- Audit Note book
- Audit programme
- Audit files
- none
Q15 | --------------- is the verification of books of accounts from Income tax point of view
- Cost audit
- Tax audit
- Management audit
- none
Q16 | Investigation is conducted
- Regularly
- Quarterly
- As and when required
- none
Q17 | Investigation is required when
- Fraud is suspected in business
- On acquisition of running business
- All of them
- none
Q18 | Which among the following is not a right of company auditors
- Right to access the book accounts
- Right to seek explanations
- Right to lies on books of accounts
- none
Q19 | Test checking is done when there is an effective system of --------------
- Internal control
- Internal audit
- Internal check
- none
Q20 | Test checking means
- Checking of all transactions
- Checking of half of the transactions
- Checking of selected items
- none
Q21 | Audit working papers are --------------------------
- Important information about audit
- Appointment letters regarding audit
- Letter of notice
- none
Q22 | Current audit file consists of
- Matters of future importance
- Matters relations to post years
- Matters relating to the year of audit
- none
Q23 | ------------------- begins where accounting ends
- Bookkeeping
- Auditing
- Internal check
- none
Q24 | ---------------- audit is compulsory for joint stock companies
- Statutory
- Final
- Continuous
- none
Q25 | Treating revenue expenditure as capital expenditure is an example of error of -------------------
- Principle
- Compensating
- Clerical
- none