McqMate
201. |
Civil liability of an auditor implies liability for |
A. | misappropriation of cash |
B. | misappropriation of goods |
C. | fraud |
D. | misfeasance |
Answer» D. misfeasance |
202. |
An auditor is held criminally liable for |
A. | Loss to his client |
B. | Neglect of his duty |
C. | Offence against statutory provisions |
D. | Frauds |
Answer» C. Offence against statutory provisions |
203. |
An auditor is held liable under C.A Act 1949 for |
A. | negligence |
B. | misfeasance |
C. | Professional misconduct |
D. | breach of contract. |
Answer» C. Professional misconduct |
204. |
__________ is a systematic examination of the books and records or a business. |
A. | Auditing |
B. | Vouching |
C. | Verification |
D. | Checking |
Answer» A. Auditing |
205. |
An audit which is compulsory by the law is __________. |
A. | Government Audit |
B. | Internal Audit |
C. | Cost Audit |
D. | Statutory Audit |
Answer» D. Statutory Audit |
206. |
.Instruction of audit issued by controller and auditor general of India ________. |
A. | Statutory audit |
B. | Final Audit. |
C. | Management audit |
D. | Government audit |
Answer» D. Government audit |
207. |
Audit done by the employees of the business undertaking is called _______. |
A. | Final audit |
B. | Management Audit |
C. | Government Audit |
D. | Internal Audit |
Answer» D. Internal Audit |
208. |
This kind of audit is conducted generally between two annual audit ______. |
A. | Internal Audit |
B. | Interim audit |
C. | Final Audit |
D. | Continuous Audit |
Answer» B. Interim audit |
209. |
Management audit otherwise called as _______. |
A. | Final audit |
B. | Efficiency Audit |
C. | Cost Audit |
D. | Cash audit |
Answer» B. Efficiency Audit |
210. |
Before the work of audit is commenced, the auditor plans out the whole of audit work is called _________. |
A. | Audit Plan |
B. | Audit Note |
C. | Audit Programme |
D. | Audit Control |
Answer» C. Audit Programme |
211. |
A number of checks and controls exercised in a business to ensure its efficient working are known as ________. |
A. | Internal Check |
B. | Internal Control |
C. | Internal Audit |
D. | Interim Check |
Answer» B. Internal Control |
212. |
A Voucher is a _______. |
A. | Document is support of an entry made in books of accounts |
B. | Invoice received from suppliers |
C. | Receipt issued to a customer for cash |
D. | Dispatch Receipt |
Answer» A. Document is support of an entry made in books of accounts |
213. |
Voucher relates to _________. |
A. | Cash receipt & payments, credit transactions |
B. | Cash payment only |
C. | Credit transactions only |
D. | Cash receipt only |
Answer» A. Cash receipt & payments, credit transactions |
214. |
Internal check is meant for ___________. |
A. | Prevention of frauds |
B. | Detection of frauds |
C. | Helping audit is depth |
D. | Detection of errors |
Answer» A. Prevention of frauds |
215. |
Purchase of machinery is a ____________. |
A. | revenue receipt |
B. | capital receipt |
C. | capital expenditure |
D. | revenue expenditure |
Answer» C. capital expenditure |
216. |
Sale of land is a __________. |
A. | revenue receipt |
B. | capital receipt |
C. | capital expenditure |
D. | revenue expenditure |
Answer» B. capital receipt |
217. |
When a transaction has not been recorded in the books of account either wholly or partially such errors are called as _________. |
A. | errors of commission |
B. | errors of omission |
C. | compensating error |
D. | error of principle |
Answer» B. errors of omission |
218. |
Verification of the value of assets, liabilities, the balance of reserves, provision and the amount of profit earned or loss suffered a firm is called _________. |
A. | continuous audit |
B. | balance sheet audit. |
C. | interim audit |
D. | partial audit |
Answer» B. balance sheet audit. |
219. |
A sale of Rs. 50000 to Mr. A was entered as a sale to Mr. B. This is an example of what? |
A. | Error of omission |
B. | Error of commission |
C. | Compensating error |
D. | Error of principle |
Answer» B. Error of commission |
220. |
Recording a transaction twice in the books of original entry is an error of __________. |
A. | principle |
B. | commission |
C. | duplication |
D. | omission |
Answer» C. duplication |
221. |
Errors and frauds already committed can be discovered under the system of ________. |
A. | internal audit, internal check, internal control |
B. | external check |
C. | statutory audit |
D. | interim audit |
Answer» A. internal audit, internal check, internal control |
222. |
Treating revenue expenditure as capital expenditure is a case of _________. |
A. | fraud |
B. | misappropriation of cash |
C. | misappropriation of goods |
D. | manipulation of accounts |
Answer» D. manipulation of accounts |
223. |
/. Special audit is necessary for _________. |
A. | inefficient concern |
B. | processing concern |
C. | trading concern |
D. | manufacturing concern |
Answer» A. inefficient concern |
224. |
The first auditors appointed by head office ____________. |
A. | for a period of one year |
B. | for a period of two years |
C. | for a period of three years |
D. | till the conclusion of the first annual general meeting |
Answer» D. till the conclusion of the first annual general meeting |
225. |
Audit Note Book contains: --------------------------------------------------------- |
A. | Various dates of reference. |
B. | Details of work done. |
C. | Notes regarding item requiring clarification, explanations, etc. |
D. | All of the above. |
Answer» D. All of the above. |
226. |
Which of the following has a broader scope? |
A. | Internal Control. |
B. | Internal Audit. |
C. | Internal Checking. |
D. | None of the above. |
Answer» D. None of the above. |
227. |
An internal auditor is : |
A. | Temporary Employee. |
B. | Permanent Employee. |
C. | Daily Wager. |
D. | None of the above. |
Answer» B. Permanent Employee. |
228. |
The main object of vouching is : |
A. | To prepare trial balance. |
B. | Conduct routine checking. |
C. | Verify authenticity & authority of transactions. |
D. | Checking of vouchers |
Answer» D. Checking of vouchers |
229. |
Valuation is the base of: |
A. | Verification. |
B. | Marketing. |
C. | Internal checking. |
D. | Vouching. |
Answer» A. Verification. |
230. |
The first auditor or auditors are appointed by : |
A. | Central Government. |
B. | Company Law Board. |
C. | Board of Directors. |
D. | Shareholders. |
Answer» C. Board of Directors. |
231. |
A number of checks & controls exercised in a business to ensure its efficient working is known as : |
A. | Internal check. |
B. | Internal control. |
C. | Internal audit. |
D. | Interim check. |
Answer» A. Internal check. |
232. |
Voucher relates to : |
A. | Cash receipt. |
B. | Cash payment. |
C. | Credit transactions. |
D. | All the above. |
Answer» D. All the above. |
233. |
Internal check is meant for : |
A. | Prevention of frauds. |
B. | Detection of frauds. |
C. | Helping audit in depth. |
D. | Detection of errors. |
Answer» C. Helping audit in depth. |
234. |
Internal auditor is appointed by : |
A. | The management. |
B. | The shareholders. |
C. | The government. |
D. | The statutory body. |
Answer» A. The management. |
235. |
Auditing begins where -------- ends. |
A. | Selling. |
B. | Inventory valuation. |
C. | Accounting. |
D. | Purchases. |
Answer» C. Accounting. |
236. |
A good audit report must at least meet one of the following qualifications: |
A. | It should offer constructive and timely suggestions to the management. |
B. | It should not point out mistakes. |
C. | It should not be based on factual information. |
D. | It should not be based on balance sheet. |
Answer» A. It should offer constructive and timely suggestions to the management. |
237. |
The work of one clerk is automatically check by another clerk is called : |
A. | Internal control. |
B. | Internal check. |
C. | Internal audit. |
D. | None of the above. |
Answer» B. Internal check. |
238. |
The owners of the company are called: |
A. | Debenture holders. |
B. | Debtors. |
C. | Shareholders. |
D. | None of the above. |
Answer» C. Shareholders. |
239. |
Verification is : |
A. | The art of recording the business transactions. |
B. | An examination of the books of accounts. |
C. | The act of establishing the accuracy of entries in the books of accounts. |
D. | none |
Answer» C. The act of establishing the accuracy of entries in the books of accounts. |
240. |
The main object of investigation is : |
A. | To discover errors and frauds. |
B. | To prevent errors and frauds. |
C. | To verify statements. |
D. | All the above. |
Answer» D. All the above. |
241. |
Internal controls and internal check are : |
A. | One and the same. |
B. | Different. |
C. | Internal control includes internal check. |
D. | None of the above. |
Answer» C. Internal control includes internal check. |
242. |
An auditor is like a : |
A. | Watchman. |
B. | Foolish dog. |
C. | Mad dog. |
D. | Watch dog. |
Answer» D. Watch dog. |
243. |
Special audit is necessary for: |
A. | Inefficient concern. |
B. | Processing concern. |
C. | Trading concern. |
D. | Manufacturing concern. |
Answer» A. Inefficient concern. |
244. |
The company’s auditor is expected to give: |
A. | His expert opinion about the accounts. |
B. | A factual position about the accounts. |
C. | A critical review of the accounts. |
D. | Financial assistance. |
Answer» B. A factual position about the accounts. |
245. |
Auditors of a joint stock company are appointed by : |
A. | Directors of the company. |
B. | Annual general meeting. |
C. | Election at the annual general meeting. |
D. | Debenture holders. |
Answer» C. Election at the annual general meeting. |
246. |
A company auditor can be removed by : |
A. | Board of directors. |
B. | Managing director. |
C. | Any director. |
D. | General Meeting. |
Answer» D. General Meeting. |
247. |
A vacancy caused by resignation of an auditor is filled by : |
A. | Board of directors. |
B. | Managing director. |
C. | General meeting. |
D. | Central government. |
Answer» C. General meeting. |
248. |
Audit in depth means : |
A. | Audit of each and every item. |
B. | Intensive audit of each and every item. |
C. | Intensive audit of few items. |
D. | Audit of a few selected items. |
Answer» B. Intensive audit of each and every item. |
249. |
Concurrent audit is a part of : |
A. | Internal check system. |
B. | Continuous audit. |
C. | Internal audit system. |
D. | Final audit. |
Answer» C. Internal audit system. |
250. |
Audit in depth is synonymous for: |
A. | Complete audit. |
B. | Completed audit. |
C. | Final audit. |
D. | Detailed audit. |
Answer» D. Detailed audit. |
251. |
Balance sheet audit included verification of : |
A. | Assets. |
B. | Liabilities. |
C. | Income & expenditure accounts where appropriate. |
D. | All of the above. |
Answer» D. All of the above. |
252. |
Which of the following statements is not true about continuous audit? |
A. | It is conducted at regular interval. |
B. | It may be carried out on daily basis. |
C. | It is needed when the organization has a good internal control system. |
D. | It is expensive. |
Answer» C. It is needed when the organization has a good internal control system. |
253. |
Which of the following is not a fact of EPA ? |
A. | Economic audit. |
B. | Efficiency audit. |
C. | Expenditure audit. |
D. | Effectiveness audit. |
Answer» C. Expenditure audit. |
254. |
Balance sheet does not include : |
A. | Verification of assets & liabilities. |
B. | Vouching of income & expense accounts related to assets and liabilities. |
C. | Examination of adjusting and auditing & closing entries. |
D. | Routine checks. |
Answer» D. Routine checks. |
255. |
When issuing unqualified opinion the auditor who evaluates the audit findings should be satisfied that the : |
A. | Amount of known miss-statement is documented in working papers. |
B. | Estimates of the total likely misstatement are less than materiality level. |
C. | Estimated of the total likely misstatement is more than materiality level. |
D. | Estimates of the total likely misstatement cannot be made. |
Answer» B. Estimates of the total likely misstatement are less than materiality level. |
256. |
Under check system principle of_________ is followed. |
A. | Division of labour |
B. | Division of work |
C. | Principle of scalar chain |
D. | Accountancy |
Answer» A. Division of labour |
257. |
This kind of audit is generally conducted between two annual audits. |
A. | Internal audit |
B. | Interim audit |
C. | Final audit |
D. | Continuous audit |
Answer» B. Interim audit |
258. |
Before the work of audit is commenced, the auditor plans out the whole of audit work is known as – |
A. | Audit plan |
B. | Audit note |
C. | Audit risk |
D. | Audit program |
Answer» D. Audit program |
259. |
Internal auditor is appointed by – |
A. | The management |
B. | The shareholders |
C. | The government |
D. | statutory body |
Answer» A. The management |
260. |
The audit that is made compulsory under the statute is called – |
A. | Statuary audit |
B. | Partial audit |
C. | Complete audit |
D. | Continues audit |
Answer» A. Statuary audit |
261. |
Who among the following can be appointed as the auditor of company? |
A. | A partner or the director of the company |
B. | A person of unsound mind |
C. | Mr. ‘Y’ who owes Rs.500 to company |
D. | Mr. ‘Z’ who holds the ‘CA’ Certificate |
Answer» D. Mr. ‘Z’ who holds the ‘CA’ Certificate |
262. |
___ is documentary evidence by which the accuracy in the books of accounts may be proved. |
A. | Cheque |
B. | Receipt |
C. | Voucher |
D. | Statement |
Answer» C. Voucher |
263. |
Sale of Rs.50,000 to ‘A’ was entered as a sale to ‘B’. This is an example of – |
A. | Error of omission |
B. | Error of commission |
C. | Compensating error |
D. | Error of Principle. |
Answer» B. Error of commission |
264. |
In comparison to the independent auditor an internal auditor is more likely to be concerned with – |
A. | Cost accountancy system |
B. | Internal control system |
C. | Legal compliance |
D. | Accounting system |
Answer» B. Internal control system |
265. |
The audit program is prepared by – |
A. | The auditor |
B. | The client |
C. | The audit assistants |
D. | Auditor & his assistants |
Answer» D. Auditor & his assistants |
266. |
Interim audit refers to – |
A. | Examination of accounts continuously |
B. | Examination of accounts intermittently |
C. | Audit work to find out & check interim profits of a company |
D. | Carrying on audit for bonus purposes at the end of year |
Answer» C. Audit work to find out & check interim profits of a company |
267. |
A company auditor should see that the dividend is paid – |
A. | After charging depreciation |
B. | Without charging depreciation |
C. | Out of capital |
D. | None of the above. |
Answer» A. After charging depreciation |
268. |
Errors of omission are – |
A. | Technical errors |
B. | Error of principle |
C. | Compensating error |
D. | none of these |
Answer» A. Technical errors |
269. |
Vouching implies – |
A. | Inspection of receipts |
B. | Examination of vouchers to check authenticity of records |
C. | Surprise checking of accounting records |
D. | Examining the various assets |
Answer» B. Examination of vouchers to check authenticity of records |
270. |
Undervaluation of stock is – |
A. | Technical error |
B. | Compensatory error |
C. | Error of principle |
D. | none of these |
Answer» C. Error of principle |
271. |
Verification refers to – |
A. | Examination of journal & ledger |
B. | Examination of vouchers related to assets |
C. | Examining the physical existence & valuation of assets |
D. | Calculation of valuation of assets |
Answer» C. Examining the physical existence & valuation of assets |
272. |
Valuation of fixed assets is based on the concept – |
A. | Going concern |
B. | Money measurement |
C. | Dual aspect |
D. | Cost concept. |
Answer» A. Going concern |
273. |
“Auditor is not valuer.” This statement was stated in – |
A. | Kingston Cotton Mill Case |
B. | London & General Bank Case |
C. | Lee VS Neuchatel Co. LTD Case |
D. | London Oil Storage Co.LTDCase |
Answer» A. Kingston Cotton Mill Case |
274. |
Floating assets are valued at – |
A. | Cost |
B. | Market price |
C. | Cost price or market price whichever is less |
D. | Cost less than depreciation |
Answer» C. Cost price or market price whichever is less |
275. |
Outstanding expenses should be verified with the help of – |
A. | Cashbook |
B. | Balance book |
C. | Journal proper |
D. | None of above. |
Answer» C. Journal proper |
276. |
First auditor of the company is appointed by the – |
A. | Shareholders |
B. | Central government |
C. | Company law board |
D. | Board of directors |
Answer» D. Board of directors |
277. |
The vacancy caused by resignation at a auditor is filled by – |
A. | Board of directors |
B. | At the general meeting of shareholders |
C. | By the central government |
D. | By the company law board |
Answer» B. At the general meeting of shareholders |
278. |
A special auditor is appointed by the – |
A. | Shareholders |
B. | Board of directors |
C. | Central government |
D. | CAG |
Answer» C. Central government |
279. |
A remuneration of a company auditor is fixed by the – |
A. | Shareholders |
B. | Board of directors |
C. | Central Government |
D. | Appointing authority |
Answer» D. Appointing authority |
280. |
Internal auditor has to submit report to – |
A. | Shareholders |
B. | Government |
C. | Company law board |
D. | none of above |
Answer» D. none of above |
281. |
Auditor in general is – |
A. | Employee of the company |
B. | Agent of the company |
C. | Agent of the shareholders |
D. | None of the above |
Answer» C. Agent of the shareholders |
282. |
Shares issued for consideration other than cash should be vouched with help of – |
A. | Directors minutes book |
B. | Shareholders minute’s book |
C. | Contract with the party concerned |
D. | Cash book |
Answer» C. Contract with the party concerned |
283. |
The term Standard Auditing Practices refers – |
A. | Auditing techniques adopted by auditor for collecting & vouching evidences |
B. | Test checking |
C. | Standards of auditing |
D. | True & fair view |
Answer» A. Auditing techniques adopted by auditor for collecting & vouching evidences |
284. |
AAS refers to – |
A. | Audit evidence |
B. | Audit Planning |
C. | Risk assessments &Internal control |
D. | Knowledge of business |
Answer» D. Knowledge of business |
285. |
The panel of Auditors of cooperative society is maintained by – |
A. | Charted Accountant |
B. | Central Government |
C. | Registrar |
D. | Shareholders |
Answer» C. Registrar |
286. |
Banking Regulation Act was passed in the year– |
A. | 1912 |
B. | 1949 |
C. | 1956 |
D. | 1955. |
Answer» B. 1949 |
287. |
Which of the following statements is not correct regarding removal of first auditor before expiry of the term? |
A. | He is removed at general meeting |
B. | Shareholders are authorized to do so |
C. | The approval of central government is required for such removal |
D. | The provision for such removal is contained in Section 224 (7) |
Answer» C. The approval of central government is required for such removal |
288. |
Retiring auditor does not have right to – |
A. | Make written representations |
B. | Get his representation circulated |
C. | Be heard at the meeting |
D. | Speak as member of company |
Answer» A. Make written representations |
289. |
According to Section ___ Special Audit is conducted at the central government |
A. | Section 233(A) |
B. | Section 233(B) |
C. | Section 242(A) |
D. | Section 242(B) |
Answer» C. Section 242(A) |
290. |
Audit of Banks is an example of – |
A. | Statutory Audit |
B. | Balance Sheet Audit |
C. | Concurrent Audit |
D. | All of above |
Answer» D. All of above |
291. |
Auditor of a _____ company does not have right to visit foreign branches of company. |
A. | Unlimited Company |
B. | Manufacturing Company |
C. | Banking Company |
D. | Non-Profit making company |
Answer» B. Manufacturing Company |
292. |
Cost Audit under Section 233(B) of The Company Act is _____ |
A. | Voluntary |
B. | Compulsory |
C. | Advisable. |
D. | Avoidable |
Answer» C. Advisable. |
293. |
Internal Auditing Standards are issued by the – |
A. | International Accounting Standard Board |
B. | Financial Accounting Standard Board |
C. | International Audit & Assurance Standard Board |
D. | Auditing Practices Board |
Answer» C. International Audit & Assurance Standard Board |
294. |
Which of the following is not a duty of an auditor? |
A. | Duty to report company’s banker |
B. | Duty to report to the members |
C. | Duty to sign the audit report |
D. | Duty to report on any violation of law |
Answer» A. Duty to report company’s banker |
295. |
The main object of vouching is : |
A. | To prepare trial balance. |
B. | Conduct routine checking. |
C. | Verify authenticity & authority of transactions. |
D. | Checking of vouchers. |
Answer» C. Verify authenticity & authority of transactions. |
296. |
Valuation is the basis of : |
A. | Verification. |
B. | Marketing. |
C. | Internal checking. |
D. | Vouching. |
Answer» A. Verification. |
297. |
Voucher relates to: |
A. | Cash receipt. |
B. | Cash payment. |
C. | Credit transactions. |
D. | All the above. |
Answer» A. Cash receipt. |
298. |
Sale of Rs.50,000 to ‘A’ was entered as a sale to ‘B’. This is an example of – |
A. | Error of omission |
B. | Error of commission ( |
C. | Compensating error |
D. | Error of Principle. |
Answer» B. Error of commission ( |
299. |
“Auditor is not valuer.” This statement was stated in – |
A. | Kingston Cotton Mill Case |
B. | London & General Bank Case |
C. | Lee VS Neuchatel Co. LTD Case |
D. | London Oil Storage Co.LTD Case |
Answer» A. Kingston Cotton Mill Case |
300. |
Thevacancy caused by resignation of an auditor is filled by – |
A. | Board of directors |
B. | At the general meeting of shareholders |
C. | By the central government |
D. | By the company law board |
Answer» B. At the general meeting of shareholders |
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