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This set of Practical Auditing Multiple Choice Questions & Answers (MCQs) focuses on Practical Auditing Set 8
Q1 | Financial statements are prepared by
- The accountant
- The auditor
- Managing director
- none
Q2 | Preliminary expanses not written off are treated as
- Fixed assets
- Intangible assets
- Fictitious assets
- none
Q3 | Verification of assets involves a critical examination of
- Ownership
- Existence
- All of these
- none
Q4 | Finished goods are valued for a balance sheet purpose
- At cost price
- At market price
- At lower of cost or market price
- none
Q5 | ---------------- includes financial and non-financial control
- Internal check
- Internal control
- Internal audit
- none
Q6 | ---------------- is concerned with the allocation of work among employees
- Internal control
- Internal check
- Internal audit
- none
Q7 | The duties of internal auditor is prescribed by
- Companies act
- Company law board
- Management
- none
Q8 | Internal audit is considered as a service to -------------------
- Share holders
- Board of directories
- Management
- none
Q9 | Pre-arranging and coordinating the audit work is called ------------------
- Audit planning
- Vouching
- Verification
- none
Q10 | A fixed audit programme is also called a --------- programme
- Tailor made
- Man made
- Auditor made
- none
Q11 | Share holders minute book should be vouched for
- Payment to vendors
- Payment to promoters
- Issue of bonus shares
- none
Q12 | ---------------- is deducted from called up capital to get paid up capital
- Subscribed capital
- Issued capital
- Calls in arrears
- none
Q13 | Discount on issue of shares is shown under the --------------- lead
- Current asset
- Preliminary expanses
- Miscellaneous expanses
- none
Q14 | To forfeit shares --------------- days notice to the share holder’s given
- 40
- 14
- 24
- none
Q15 | -------------- of the companies Act 1956 prescribes the duty of preparing a report by an auditor
- Sec-227(2)
- Sec-273(1)
- Sec-224(2)
- none
Q16 | A --------------- report is one which contains the opinion of the auditor subject to certain conditions
- Unqualified
- Qualified
- Clean
- none
Q17 | --------------- is made out of reserves or share premium
- Preference shares
- Bonus shares
- Debentures
- none
Q18 | ---------------- shares cannot be issued if the company makes any default in the payment of itsobligation
- Preference
- Equity
- Bonus
- none
Q19 | Capitalization of reserves means -------------------------
- Creation of provision
- Declaration of dividend
- Issue of bonus shares
- none
Q20 | Provisions regarding bonus issue should be given in -------------------- document
- Memorandum of association
- Articles of association
- Prospectus
- none
Q21 | Balance remaining in the forfeited Account after reissue is transferred to --------------- account
- General reserve
- Capital reserve
- Premium account
- none
Q22 | If reissue of shares are more than face value of shares, the excess amount is transferred to ----------account.
- General reserve
- Capital reserve
- Premium account
- none
Q23 | Share call amount due is credited to ------------------ account
- Share application account
- Share allotment account
- Share capital account
- none
Q24 | When excess applications money is refunded to applicants it is vouched with cash book and -------
- Letter of allotment
- Letter of call
- Letter of regreat
- none
Q25 | Partial auditing is usually done by
- Sole trading concern
- Joint stock company
- Govt. department
- none