

McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) , Staff Selection Commission (SSC) .
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» C. an error of omission |
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 |
26. |
An auditor is like a |
A. | Blood haunt |
B. | Watch dog |
C. | May both according to situation |
D. | None of these |
Answer» B. Watch dog |
27. |
The term ‘Audit’ is derived from a Latin word “audire” which means; |
A. | To inspect |
B. | To examine |
C. | To hear |
D. | To investigate |
Answer» C. To hear |
28. |
Process of verifying the documentary evidences of transactions are known as: |
A. | Auditing |
B. | Testing |
C. | Vouching |
D. | Verification |
Answer» C. Vouching |
29. |
Auditing is compulsory for |
A. | Small scale business |
B. | Partnership firms |
C. | Joint stock Companies |
D. | Proprietary Concerns |
Answer» C. Joint stock Companies |
30. |
The main object of an audit is ___ |
A. | Expression of expert opinion |
B. | Detection and Prevention of fraud and error |
C. | Both (a) and (b) |
D. | Depends on the type of audit. |
Answer» D. Depends on the type of audit. |
31. |
Concealment of shortage by delaying the recording of cash receipts is known as |
A. | Embezzlement |
B. | Misappropriation |
C. | Lapping |
D. | None of these |
Answer» C. Lapping |
32. |
The title of AAS2 issued by Council of ICAI is ___ |
A. | Objective and Scope of the Financial Statements |
B. | Objective and Scope of the Audit of Financial Statements |
C. | Objective and Scope of Business of an Entity |
D. | Objective and Scope of Financial Statements Audit |
Answer» B. Objective and Scope of the Audit of Financial Statements |
33. |
Lapping is also known as: |
A. | Teeming and lading |
B. | Embezzlement |
C. | Looping |
D. | Hacking |
Answer» A. Teeming and lading |
34. |
Which of the following is not true about opinion on financial statements? |
A. | The auditor should express an opinion on financial statements. |
B. | His opinion is no guarantee to future viability of business |
C. | He is responsible for detection and prevention of frauds and errors in financial statements |
D. | He should examine whether recognised accounting principle have been consistently |
Answer» C. He is responsible for detection and prevention of frauds and errors in financial statements |
35. |
A sale of Rs. 25,000 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 |
36. |
‘Goods sent on approval basis’ have been recorded as ‘Credit sales’. This is an example of _ |
A. | Error of principle |
B. | Error of commission |
C. | Error of omission |
D. | Error of duplication |
Answer» A. Error of principle |
37. |
Which of the following statements is not true? |
A. | Management fraud is more difficult to detect than employee fraud |
B. | Internal control system reduces the possibility of occurrence of employee fraud and management fraud |
C. | The auditor’s responsibility for detection and prevention of errors and frauds is similar. |
D. | All statements are correct. |
Answer» B. Internal control system reduces the possibility of occurrence of employee fraud and management fraud |
38. |
As per AAS4, if auditor detects an error then – |
A. | He should inform the management. |
B. | He should communicate it to the management if it is material |
C. | The auditor should ensure financial statements are adjusted for detected errors. |
D. | Both (b) and (c) |
Answer» D. Both (b) and (c) |
39. |
Which of the following is not a limitation of audit as per AAS4? |
A. | Objectivity of auditor’s judgment |
B. | Selective testing |
C. | Persuasiveness of evidence |
D. | Limitations of internal control system. |
Answer» A. Objectivity of auditor’s judgment |
40. |
Internal audit is undertaken |
A. | By independent auditor |
B. | Statutorily appointed auditor |
C. | By a person appointed by the management |
D. | By a government auditor |
Answer» C. By a person appointed by the management |
41. |
The scope of internal audit is decided by the : |
A. | Shareholders |
B. | Management |
C. | Government |
D. | Law |
Answer» B. Management |
42. |
Audit of banks is an example of – |
A. | Statutory audit |
B. | Balance sheet audit |
C. | Concurrent audit |
D. | All of the above |
Answer» D. All of the above |
43. |
Concurrent audit is a part of |
A. | Internal check system |
B. | Continuous audit |
C. | Internal audit system |
D. | None |
Answer» C. Internal audit system |
44. |
In India, balance sheet audit is synonymous to |
A. | Annual audit |
B. | Continuous audit |
C. | Detailed audit |
D. | Statutory audit |
Answer» A. Annual audit |
45. |
Audit in depth is synonymous for |
A. | Complete audit |
B. | Completed audit |
C. | Final audit |
D. | Detailed audit |
Answer» D. Detailed audit |
46. |
Institute of Chartered Accountants of India was established |
A. | 1956 |
B. | 1949 |
C. | 1956 |
D. | 1948 |
Answer» B. 1949 |
47. |
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 |
48. |
Internal check is carried on by |
A. | Staff specially appointed for the purpose |
B. | Internal auditor |
C. | Supervisor of the staff |
D. | Members of the staff |
Answer» D. Members of the staff |
49. |
Errors of Omission are |
A. | Technical errors |
B. | Errors of principle |
C. | Compensating errors |
D. | None of the above |
Answer» A. Technical errors |
50. |
Window dressing implies: |
A. | Curtailment of expenses |
B. | Checking of Wastages |
C. | Under valuation of assets |
D. | Over Valuation of assets |
Answer» D. Over Valuation of assets |
Done Studing? Take A Test.
Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.