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) .
| 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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