Auditing Archives - MCQ and Quiz for Exams

1. Statement I: Management audit is a part of financial audit. Statement II: Management audit is not compulsory under any law.

Only statement I is true

Only statement II is true

Both statements are true

Both statements are false

Detailed SolutionStatement I: Management audit is a part of financial audit. Statement II: Management audit is not compulsory under any law.

2. In which type of energy audit readily available data is used to analyse the performance?

General audit

Preliminary audit

Safety audit

System audit

Detailed SolutionIn which type of energy audit readily available data is used to analyse the performance?

3. Acontinuous audit is especially needed for

Any trading organization

Smaller concern

Banking business

Manufacturing companies

Detailed SolutionAcontinuous audit is especially needed for

4. The main objective of verification of assets is

Physical verification of assets

Checking the values of assets

Examining the authority of their acquisition

All of the above

Detailed SolutionThe main objective of verification of assets is

5. Interim audit refers to

Continuous examination of accounts

Intermittent examination of accounts

Audit work to find and check the interim profits of a company

Carrying on audit for bonus purpose at the end of the year

Detailed SolutionInterim audit refers to

6. Checking the date of voucher on the voucher during vouching, mainly helps the auditor to obtain evidence that

The transaction relates to current year

The transaction has taken place

The transaction is genuine

The transaction is legal

Detailed SolutionChecking the date of voucher on the voucher during vouching, mainly helps the auditor to obtain evidence that

7. The reason(s) of qualified report is/are

Violation of generally accepted principles of auditing

Violation of accounting principles

Lack of adequate information and explanations

All of the above

Detailed SolutionThe reason(s) of qualified report is/are

8. Investigation is conducted:

As a good inquiry

To establish the correctness of the accounting records

For some specific purpose

As a constitutional requirement

Detailed SolutionInvestigation is conducted:

9. Safety audit is mandatory for

Manufacturing industries

Hazardous industries

Textile industries

Mining industries

Detailed SolutionSafety audit is mandatory for

10. The auditor is most likely to examine related party transactions very carefully while vouching:

Credit sales

Sales returns

Credit purchases

Cash purchases

Detailed SolutionThe auditor is most likely to examine related party transactions very carefully while vouching:

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