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) .
| 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. | |
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