| 1. |
Goods purchased but not recorded in the purchase register is ________________ |
| A. | an error of omission |
| B. | to reduce profits |
| C. | an error of commission |
| D. | affect on agreement of trial balance |
| Answer» A. an error of omission | |
| 2. |
Working papers are the property of the ________________ |
| A. | client and auditor |
| B. | auditor |
| C. | client |
| D. | equity shareholders |
| Answer» B. auditor | |
| 3. |
Which of the following documents is not relevant for vouching of sales ________________ |
| A. | daily cash sales summary |
| B. | credit memos |
| C. | delivery challans |
| D. | sales department attendance record |
| Answer» D. sales department attendance record | |
| 4. |
The main object of an Audit is ________________ |
| A. | to ensure that final accounts are prepared |
| B. | expression of an opinion on true and fair view of accounts |
| C. | to ensure the future viability of the enterprise |
| D. | detection and prevention of frauds and errors |
| Answer» B. expression of an opinion on true and fair view of accounts | |
| 5. |
An Audit Programme must be prepared ________________ |
| A. | before commencement of an audit |
| B. | after completion of an audit |
| C. | after submission of an audit report |
| D. | during the conduct of an audit |
| Answer» A. before commencement of an audit | |
| 6. |
Analytical Review is ________________ |
| A. | an audit technique |
| B. | audit in depth |
| C. | a compliance procedure |
| D. | reporting requirement |
| Answer» A. an audit technique | |
| 7. |
Audit in Depth means ________________ |
| A. | none of the above |
| B. | detailed examination of all transactions |
| C. | investigation of all transactions |
| D. | detailed examination of selected transactions |
| Answer» D. detailed examination of selected transactions | |
| 8. |
Audit programme should be ________________ |
| A. | flexible |
| B. | rigid |
| C. | oral and flexible |
| D. | oral |
| Answer» A. flexible | |
| 9. |
________________ incorporates both Accounting and Administrative Controls. |
| A. | internal control |
| B. | internal check |
| C. | statutory audit |
| D. | internal audit |
| Answer» A. internal control | |
| 10. |
Debtors are valued at ________________ |
| A. | realizable value |
| B. | as per articles of association |
| C. | book value |
| D. | decided by the customer |
| Answer» C. book value | |
| 11. |
The main objective of Window Dressing is ________________ |
| A. | increase liability |
| B. | to mislead investors |
| C. | to reduce tax liability |
| D. | to understate profits |
| Answer» B. to mislead investors | |
| 12. |
________________ document is not relevant for vouching cash purchases |
| A. | purchase order |
| B. | goods inward register |
| C. | purchase invoice |
| D. | attendance record of cashier |
| Answer» D. attendance record of cashier | |
| 13. |
To select a sample for Audit, the auditor should consider ________________ |
| A. | all the above |
| B. | the size of the sample |
| C. | the volume of transactions |
| D. | adequacy of internal control system |
| Answer» A. all the above | |
| 14. |
Secret reserves are shown on ________________ |
| A. | assets side of balance sheet |
| B. | none of the above |
| C. | liabilities side of balance sheet |
| D. | credit side of trading account |
| Answer» B. none of the above | |
| 15. |
Stock of goods on consignment should be valued at ________________ |
| A. | none of the above |
| B. | invoice price |
| C. | cost of realizable value whichever is lower |
| D. | cost price |
| Answer» C. cost of realizable value whichever is lower | |
| 16. |
________________ is not an error of Commission |
| A. | mathematical error |
| B. | compensating error |
| C. | posting error |
| D. | none of the above |
| Answer» B. compensating error | |
| 17. |
Telephone charges should be examine on the basis of ________________ |
| A. | cash memo |
| B. | telephone bill |
| C. | all the above |
| D. | agreement with telephone department |
| Answer» B. telephone bill | |
| 18. |
The Auditor examines Bill of Lading in order to vouch ________________ |
| A. | sales within the state |
| B. | all the above |
| C. | sales outside the state |
| D. | sales outside the country |
| Answer» D. sales outside the country | |
| 19. |
________________ Asset, which is not subject to physical verification |
| A. | stock |
| B. | cash |
| C. | furniture |
| D. | debtors |
| Answer» D. debtors | |
| 20. |
Goods sold but not recorded in Sales Register is ________________ |
| A. | compensating error |
| B. | an error of commission |
| C. | an error of omission |
| D. | none of the above |
| Answer» B. an error of commission | |
| 21. |
Audit plan should be best on knowledge of the ________________ |
| A. | client\s reputation |
| B. | client\s family |
| C. | client\s share capital |
| D. | client\s business |
| Answer» D. client\s business | |
| 22. |
Confirmation is ________________ |
| A. | a compliance procedure |
| B. | an audit technique |
| C. | a principle of audit |
| D. | none of the above |
| Answer» B. an audit technique | |
| 23. |
________________ should be checked by the Auditor in verification of Machinery |
| A. | all the above |
| B. | charge/line |
| C. | the possession |
| D. | ownership |
| Answer» A. all the above | |
| 24. |
Closing stock with the consignee is to be shown as the Asset of ________________ |
| A. | consignee |
| B. | customer |
| C. | all the above |
| D. | consignor |
| Answer» D. consignor | |
| 25. |
If a material financial fraud is detected, Auditor should ________________ |
| A. | report it to police |
| B. | report it to the institute of ca of india |
| C. | ignore it |
| D. | report it to the owners or shareholders |
| Answer» D. report it to the owners or shareholders | |