Auditing MCQs
Auditing MCQs
A) Expression Of Opinion
B) Detection And Prevention Of Fraud And Error
C) Both (A) And (B)
D) Depends On The Type Of Audit.
A) Error Of Omission
B) Error Of Commission
C) Compensating Error
D) Error Of Principle
5. ‘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
9. HOW MANY PRINCIPLES ARE LISTED IN AAS1, WHICH GOVERN AUDITOR’S PROFESSIONAL
OBLIGATION?
A) NINE
B) FOURTEEN
C) SEVEN
D) EIGHT
10. BOTH AUDITING AND ACCOUNTING ARE CONCERNED WITH FINANCIAL STATEMENTS. WHICH OF
THE FOLLOWING
A) AUDITING USES THE THEORY OF EVIDENCE TO VERIFY THE FINANCIAL INFORMATION MADE
AVAILABLE BY ACCOUNTANCY
A) AUDIT ASSUMPTIONS
B) ACTS TO BE PERFORMED
C) QUALITY CRITERION
D) METHODS OF WORK
13. WHICH OF THE FOLLOWING FACTORS LIKELY TO BE IDENTIFIED AS A FRAUD FACTOR BY THE
AUDITOR?
A) THE COMPANY IS PLANNING AN INITIAL PUBLIC OFFER OF QUALITY SHARES TO RAISE ADDITIONAL
CAPITAL FOR EXPANSION.
B) BANK RECONCILIATION STATEMENT INCLUDES DEPOSITSINTRANSIT.
C) PLANT AND MACHINERY IS SOLD AT A LOSS.
D) THE COMPANY HAS MADE POLITICAL CONTRIBUTIONS.
14. THE MOST DIFFICULT TYPE OF MISSTATEMENT TO DETECT FRAUD IS BASED ON:
Answers
ASSESSMENT THAT THE RISK OF MATERIAL MISSTATEMENT DUE TO FRAUD IS HIGH IN RELATION TO
EXISTENCE OF INVENTORY?
17. WHICH OF THE FOLLOWING IS NOT LIKELY TO BE A FRAUD RISK FACTOR RELATING TO
MANAGEMENT’S? CHARACTERISTICS
18. PROFESSIONAL SKEPTICISM REQUIRES THAT THE AUDITOR ASSUME THAT MANAGEMENT IS
A) REASONABLY HONEST
19. WHICH OF THE FOLLOWING INFORMATION SHOULD A SUCCESSOR AUDITOR OBTAIN DURING THE
INQUIRY OF?
20. THE AUDIT ENGAGEMENT LETTER, GENERAL Y, SHOULD INCLUDE A REFERENCE TO EACH OF THE
FOLLOWING EXCEPT
A) LIMITATIONS OF AUDITING
21. THE USE OF AN AUDIT ENGAGEMENT LETTER IS THE BEST METHOD OF ASSURING THE AUDITOR
WILL HAVE WHICH OF THE FOLLOWING?
C) ACCESS TO ALL BOOKS, ACCOUNTS AND VOUCHERS REQUIRED FOR AUDIT PURPOSE
22. THE USE OF AN AUDIT ENGAGEMENT LETTER IS THE BEST METHOD OF DOCUMENTING
II) SIGNIFICANTLY HIGHER CONTROL RISK THAN THAT ASSESSED IN PRIOR AUDIT.
A) (I) AND (I) B) (I) AND (II) C) I AND (IV) D) (I I AND (IV)
23. AN AUDITOR WHO ACCEPTS AN AUDIT BUT DOES NOT POSSESS THE INDUSTRY EXPERTISE OF THE
BUSINESS ENTITY SHOULD
A) ENGAGE EXPERTS
24. THE LEAST IMPORTANT ELEMENT IN THE EVALUATION OF AN AUDIT FIRM’S SYSTEM OF QUALITY
CONTROL WOULD RELATE TO
25. THE PRIMARY PURPOSE OF ESTABLISHING QUALITY CONTROL POLICIES AND PROCEDURES FOR
DECIDING ON CLIENT EVALUATION IS TO
C) ENSURE AUDIT FEES IS CHARGED ACCORDING TO THE TYPE OF AUDIT WORK ASSIGNED
26. WHICH OF THE FOLLOWING IS NOT A QUALITY CONTROL CONSIDERATION ON ACCEPTING A NEW
CLIENT?
27. AN AUDITOR OBTAINS KNOWLEDGE ABOUT A NEW CLIENT’S BUSINESS AND ITS INDUSTRY
TO
C) UNDERSTAND THE EVENTS AND TRANSACTIONS THAT MAY HAVE AN EFFECT ON CLIENT’S FINANCIAL
STATEMENTS.
Answers
16. A 17. C 18. B 19. A 20. D 21. C 22. D 23. B 24. B 25. B 26. C 27. c
CONCEPTS OF AUDITING
a) Statutory audit
c) Concurrent audit
b) Continuous audit
c) Internal audit system
d) None
a) Annual audit
b) Continuous audit
c) Detailed audit
d) Statutory audit
4. Audit in depth is
synonymous for
a) Complete audit
b) Completed audit
c) Final audit
d) Detailed audit
a) Assets
b) Liabilities
d) It is expensive
7. Which of the following is not a fact of EPA?
a) Economic audit
b) Efficiency audit
c) Expenditure audit
d) Effectiveness audit
8. The Delhi Government had constructed six bungalows for its ministers. They are lying unoccupied for
last three years. This would be a matter of concern for
a) Propriety Auditor
b) Performance Auditor
c) Financial Auditor
9. Financial auditor is not concerned with propriety of business transactions. However, the exceptions to
this rule are contained for audit of limited companies in_
c) CARO, 2003
d) Routine checks
11. Which of the following statements is not correct about materiality?
d) At the planning state, the auditor considers materiality at the financial statement level
only
13. When issuing unqualified opinion, the auditor who evaluates the audit findings should be
14. In determining the level of materiality for an audit, what should not be considered?
a) helps to determine the nature, timing and extent of other audit procedures
16. Which of the following statements is most closely associated with analytical procedure?
17. For al audits of financial statements made in accordance with AAS14, the use of analytical
a) Substantive testing
b) Planning stage
18. The basic assumption underlying the use of analytical procedures is:
a) It helps the auditor to study relationship among elements of financial information
b) Relationship among data exist and continue in the absence of known condition to the
contrary
21. When applying analytical procedures, an auditor could develop independent estimate of an
Audit?
statements
CONCEPTS OF AUDITING
1. E 2. C 3. A 4. D 5. D 6. C 7. C 8. D 9. D 10. d
AUDIT EVIDENCE
B) DOCUMENTS OBTAINED BY AUDITOR FROM THIRD PARTIES DIRECTLY. C) CARBON COPIES OF SALES
INVOICES INSPECTED BY THE AUDITOR
2. WHICH OF THE FOLLOWING STATEMENTS IS, GENERAL Y, CORRECT ABOUT THE RELIABILITY OF AUDIT
EVIDENCE?
A) TO BE RELIABLE, EVIDENCE SHOULD CONCLUSIVE RATHER THAN PERSUASIVE
C) WILL INCREASE PROPORTIONATELY WHEN THE AUDITOR DECREASES THE ASSESSED LEVEL OF
CONTROL RISK
4. THE NATURE, TIMING AND EXTENT OF SUBSTANTIVE PROCEDURES IS RELATED TO ASSESSED LEVEL OF
CONTROL RISK
A) RANDOMLY
B) DISPROPORTIONATELY
C) DIRECTLY
D) INVERSELY
A) THE RELIABILITY OF AUDIT EVIDENCE AND ITS RELEVANCE IN MEETING THE AUDIT OBJECTIVE
TRUTHFULNESS
A) MINUTES OF MEETINGS
REPRESENTATION
9. WHAT WOULD MOST APPROPRIATELY DESCRIBE THE RISK OF INCORRECT REJECTION IN TERMS OF
SUBSTANTIVE TESTING?
A) THE AUDITOR CONCLUDES BALANCE IS MATERIAL Y CORRECT WHEN IN ACTUAL FACT IT IS NOT
B) THE AUDITOR CONCLUDES THAT THE BALANCE IS MATERIALLY MISSTATED WHEN IN ACTUAL FACT IT
NOT
C) THE AUDITOR HAS REJECTED AN ITEM FOR SAMPLE WHICH WAS MATERIAL
11. WHAT WOULD MOST EFFECTIVELY DESCRIBE THE RISK OF INCORRECT ACCEPTANCE IN TERMS OF
SUBSTANTIVE AUDIT TESTING?
A) THE AUDITOR HAS ASCERTAINED THAT THE BALANCE IS MATERIAL Y CORRECT WHEN IN ACTUAL
FACT IT IS NOT
B) THE AUDITOR CONCLUDES THE BALANCE IS MATERIAL Y MISSTATED WHEN IN ACTUAL FACT IS NOT
C) THE AUDITOR HAS REJECTED AN ITEM FROM SAMPLE WHICH WAS NOT SUPPORTED BY
DOCUMENTARY
EVIDENCE
AUDIT EVIDENCE
1. C 2. B 3. D 4. C 5. A 6. B 7. D 8. B 9. B 10. D 11. A
1. WHICH OF THE FOLLOWING DOCUMENTS IS NOT RELEVANT FOR VOUCHING CASH SALES?
B) SALESMEN’S SUMMARY
D) BANK STATEMENT
D) ANY OF THESE
3. TO TEST WHETHER SALES HAVE BEEN RECORDED, THE AUDITOR SHOULD DRAW A SAMPLE FROM A
FILE OF
A) PURCHASE ORDERS
B) SALES ORDERS
C) SALES INVOICES
D) BILL OF LOADING
4. FOR VOUCHING OF WHICH ITEM, THE AUDITOR IS MOST LIKELY TO EXAMINE COST RECORDS?
A) COMMISSION EARNED
C) CREDIT SALES
D) SALE OF SCRAP
5. THE “GUIDANCE NOTE ON REVENUE” ISSUED BY THE ICAI DOES NOT DEAL WITH
A) SALES REVENUE
6. AN AUDITOR CONDUCTS A SURPRISE CHECK ON THE PAY DAY (I.E) THE DAY WAGES AND SALARIES
ARE PAID. THE PRIMARY PURPOSE OF THIS AUDIT PROCEDURES IS
7. WHICH OF THE FOLLOWING WOULD PREVENT DOUBLE PAYMENT OF THE SAME VOUCHER?
A) THE PERSON SIGNING THE CHEQUE SHOULD CANCEL THE SUPPORTING DOCUMENTS
C) THE DATA OF PAYMENT OF VOUCHERS OF SIMILAR NATURE SHOULD BE THE SAME OR CLOSE TO
EACH
OTHER
D) ALL OF THESE
9. WHILE VOUCHING WAGES, AUDITOR SHOULD EXAMINE WHETHER THERE IS PROPER SEGREGATION
OF DUTIES. WHICH OF THE FOLLOWING ACTIVITIES SHOULD NOT BE DONE BY SAME DEPARTMENT?
D) COMPARING TIME CLOCK RECORDS WITH TIME REPORTS PREPARED BY SUPERVISORS AND
PREPARING
LIST OF WORKERS EMPLOYED ALONG WITH THE UNITS OF PRODUCTION FOR EACH ONE OF THEM
10. IN ORDER TO VOUCH, WHICH OF THE EXPENSES, THE AUDITOR WILL EXAMINE BILL OF ENTRY?
A) CUSTOM
B) EXCISE DUTIES
C) SALES TAX
D) INCOME TAX
11.WHILE VOUCHING, HOW WILL THE AUDITOR ENSURE HIMSELF THAT ALL CREDIT SALES
TRANSACTIONS HAVE BEEN RECORDED BY THE ENTITY?
C) COUNTING THE NUMBER OF INVOICES AND MATCHING THE NUMBER WITH ENTRIES ON SALES BOOK
12.IN CASE OF SALES RETURN, THE AUDITOR SHOULD EXAMINE WHICH DOCUMENTS?
13.AN INTERNAL AUDITOR DISCOVERED THAT FICTITIOUS PURCHASES HAVE BEEN RECORDED BY THE
PURCHASE CLERK. THIS INDICATES ABSENCE OF WHICH CONTROL?
A) PURCHASE INVOICES ARE INDEPENDENTLY MATCHED WITH PURCHASE ORDERS AND GOODS
RECEIVED
NOTES
B) GOODS RECEIVED NOTES REQUIRES THE SIGNATURE OF INDIVIDUAL WHO AUTHORIZED THE
PURCHASE
B) SELECTING SUPPLIES
A) CREDIT SALES
B) SALES RETURNS
C) CREDIT PURCHASES
D) CASH PURCHASES
16.IN ORDER TO VOUCH BOUGHT LEDGER, THE AUDITOR OBTAIN CONFIRMATIONS FROM CREDITORS.
THE PRINCIPAL REASON FOR THE AUDITOR TO EXAMINE SUPPLIERS STATEMENTS AT BALANCE SHEET
DATE IS TO OBTAIN EVIDENCE THAT
17.THE CREDITORS ACCOUNTS, GENERALLY, HAVE CREDIT BALANCE. DEBIT BALANCE MAY BE DUE TO
B) GOODS RETURNED
D) ANY OF THESE
B) SALES RETURN
C) PURCHASE RETURN
D) DISCOUNT ALLOWED TO CUSTOMERS AS PER ORGANIZATIONAL POLICY
A)PURCHASES COULD BE MADE FROM VENDORS WHOSE PRODUCT QUALITY MAY NOT BE GOOD
C) PURCHASES COULD BE MADE FROM VENDORS WHO MAY HAVE OFFERED PRICE TO VICE-PRESIDENT
PURCHASES
D) ANY OF THESE
AUDIT OF CASHTRANSACTION
1. C 2. A 3. C 4. D 5. C 6. C 7. A 8. A 9. B 10. A 11. D 12. D 13. 14. C 15. C 16. B 17. D 18. D 19. D
ASSETS
C) THE AUDITOR SHOULD VALUE THE ASSET AS PER GENERALLY ACCEPTED ACCOUNTING PRINCIPLE
BY THE CLIENT. WHICH OF THE FOLLOWING DOCUMENTS IS LEAST RELEVANT TO THE AUDITOR FOR
VERIFICATION PURPOSES
A) BILLS OF CONTRACTOR
D) LOAN AGREEMENT
A) FREEHOLD LAND
C) LEASEHOLD PROPERTY
D) MOTOR VEHICLES
6. THE AUDITOR HAS NOTICED EXISTENCE OF RECURRING LOSSES SALE OF FIXED ASSETS THIS INDICATES
D) ACCOUNTING ERRORS
7. WHICH OF THE FOLLOWING FINANCIAL STATEMENTS ASSERTIONS ARE ADDRESSED BY TESTING THE
CUT OFF FOR PLANT ASSET ADDITION
8. THE AUDITOR WHILE VERIFYING PREPAID INSURANCE HAS CONCLUDED THAT THERE IS INADEQUATE
INSURANCE OF BUILDING HE SHOULD__
A) VALUATION
B) EXISTENCE
C) DISCLOSURE
D) POSSESSION
10.WHEN AUDITING PREPAID INSURANCE, AN AUDITOR DISCOVERS THAT THE INSURANCE POLICY BOND
ON BUILDING IS NOT AVAILABLE FOR INSPECTION. THIS MAY INDICATE__
B) LIEN ON BUILDING
11.EQUITY SHARES OF XY LTD. HELD BY ABC LTD. ARE IN THE CUSTODY OF STOCK HOLDING
CORPORATION OF INDIA LIMITED. THE AUDITOR MANY VERIFY THIS INVESTMENT BY A)
12.WHICH OF THE FOLLOWING CONTROLS WOULD ENSURE THAT SECURITIES ARE NOT LOST, STOLEN
OR DIVERTED?
13.WHICH OF THE FOLLOWING IS NOT A PROPER THIRD PARTY TO HOLD INVESTMENTS ON BEHALF OF
THE CLIENT?
A) CASH BALANCE
B) INVESTMENTS
C) BILLS RECEIVABLES
D) DEBTORS
16.WHICH OF THE FOLLOWING STATEMENTS IS NOT TRUE WITH REGARD TO TEEMING AND LADING ?
C) IF SAME INDIVIDUAL MAINTAINS CASH RECEIPTS AND CASH PAYMENTS TEEMING AND LADING IS
LIKELY
TO EXIST
D) TO CONCEAL THE SHORTAGE, THE DEFRAUD, USUALLY, TRIES TO KEEP BANK AND BOOK AMOUNTS IN
DAILY AGREEMENT SO THAT A BANK RECONCILIATION WILL NOT DETECT THE IRREGULARITY.
17.THE BALANCE OF CASH IN OFTEN BETWEEN ONE TO FIVE PERCENT OF TOTAL ASSETS. TICK THE MOST
APPROPRIATE STATEMENT WITH REGARD TO VERIFICATION OF CASH IN CONTEXT OF THIS
RELATIVE CONCEPT
C) ENSURE POSTAGE AND REVENUE STAMPS ARE NOT COUNTED IN PHYSICAL COUNT
B) AUDITOR MAY NOT ATTEND PHYSICAL VERIFICATION OF STOCK BY MANAGEMENT, IF HE DOES NOT
FIND IT
APPROPRIATE TO RELY ON IT
C) IF INVENTORY IS MATERIAL, EVEN WHEN THE AUDITOR IS NOT PLACING RELIANCE ON THE PHYSICAL
VERIFICATION BY THE MANAGEMENT, HE SHOULD ATTEND IT
STOCK TAKE IS TO OBTAIN DIRECT KNOWLEDGE THAT THE STOCK AND HAS BEEN PROPERTY COUNTED
A) PURCHASE RETURNS
B) SALES RETURNS
D) PURCHASE DISCOUNTS
1. WHICH OF THE FOLLOWING AUDITING ASSURANCE STANDARD DEALS WITH AUDIT PLANNING?
A) THE AUDITOR
B) THE CLIENT
C) THE AUDIT ASSISTANTS
D) THE AUDITOR AND HIS AUDIT ASSISTANTS
3. THE WORKING PAPERS WHICH AUDITOR PREPARES FOR FINANCIAL STATEMENTS AUDIT ARE _
A) MANAGEMENT’S INTEGRITY
B) AUDITOR’S EXPERIENCE AND PROFESSIONAL JUDGMENT
C) AUDITOR’S QUALIFICATION
D) CONTROL RISK
5. WHICH OF THE FOLLOWING BEST DESCRIBES THE PRIMARY PURPOSE OF AUDIT PROGRAMME
PREPARATION?
8. FOR WHAT MINIMUM PERIOD SHOULD AUDIT WORKING PAPERS BE RETAINED BY AUDIT FIRM?
A) FOR THE TIME PERIOD THE ENTITY REMAINS A CLIENT OF THE AUDIT FIRM.
9. WHICH OF THE FOLLOWING FACTORS WOULD LEAST LIKELY AFFECT THE QUANTITY AND CONTENT OF
AN AUDITOR’S WORKING PAPERS
10. WHICH OF THE FOLLOWING STATEMENT IS TRUE REGARDING AN AUDITOR’S WORKING PAPERS?
11. WHICH OF THE FOLLOWING STATEMENT BEST DESCRIBES THE UNDERSTANDING WITH RESPECT TO?
OWNERSHIP AND CUSTODY OF WORKING PAPERS PREPARED BY AN AUDITOR?
A) THE WORKING PAPERS MAY BE OBTAINED BY THIRD PARTIES WHEN THEY APPEAR TO BE RELEVANT
TO
ISSUES RAISED IN LITIGATION
B) THE SAFE CUSTODY OF WORKING PAPERS IS THE RESPONSIBILITY OF CLIENT, IF KEPT AT HIS PREMISES
C) THE WORKING PAPERS MUST BE RETAINED BY AN AUDIT FIRM FOR A PERIOD OF 10 YEARS
D) SUCCESSOR AUDITORS MAY HAVE ACCESS TO WORKING PAPERS OF THE PREDECESSOR AUDITORS.
THE
APPROVAL OF CLIENT IS NOT REQUIRED.
12. THE CURRENT FILE OF THE AUDITOR’S WORKING PAPERS, GENERAL Y, SHOULD INCLUDE
A) A FLOWCHART OF THE INTERNAL CONTROLS
B) ORGANIZATION CHARTS
C) A COPY OF FINANCIAL STATEMENTS
D) COPIES OF BOND AND DEBENTURES
13. KNOWLEDGE OF THE ENTITY’S BUSINESS DOES NOT HELP THE AUDITOR TO
14. THE MAIN ADVANTAGE OF USING STATISTICAL SAMPLING TECHNIQUES IS THAT SUCH TECHNIQUES:
15. WHICH OF THE FOLLOWING METHODS OF SAMPLE SELECTION IS LEAST SUITABLE FOR
EXTRAPOLATING RESULTS TO THE POPULATION?
A) SYSTEMATIC SAMPLING
B) RANDOM SAMPLING
C) HAPHAZARD SAMPLING
D) NONE
C) LOWER THE EXPECTED ERROR, SMALLER THE SAMPLE SIZE D) ALL ARE CORRECT
17. WHICH OF THE FOLLOWING FEATURES IS MOST IMPORTANT FOR RANDOM BASED SELECTION?
C) EVERY ITEM IN THE POPULATION HAS AN EQUAL CHANCE OF BEING SELECTED IN THE SAMPLE
D) ITEMS SHOULD BE SELECTED AT ‘N’ THE INTERVAL
18. RISK OF UNDER RELIANCE IS THE RISK THAT THE SAMPLE SELECTED TO TEST CONTROLS___
A) DOES NOT SUPPORT THE AUDITOR’S PLANNED ASSESSED LEVEL OF CONTROL RISK WHEN THE TRUE
B) SUPPORTS THE AUDITOR’S PLANNED ASSESSED LEVEL OF CONTROL RISK WHEN THE ACTUAL
POSITION
19. WHICH OF THE FOLLOWING FACTORS IS (ARE) CONSIDERED IN DETERMINING THE SAMPLE SIZE FOR
TESTS OF CONTROL?
A) PROJECTED ERROR
B) TOLERABLE ERROR
C) EXPECTED ERROR
20.TOLERABLE ERROR, IS THE MAXIMUM MONETARY ERROR THAT THE AUDITOR IS PREPARED TO
ACCEPT IN THE POPULATION AND STILL CONCLUDE THAT AUDIT OBJECTIVE HAS BEEN ACHIEVED, IS
DIRECTLY RELATED TO
A) SAMPLE SIZE B) AUDIT RISK C) MATERIALITY D) EXPECTED ERROR
AUDIT PREPARATION
Answers
1. B 2. D 3. C 4. B 5. C 6. D 7. A 8. C 9. D 10. B
11. A 12. C 13. A 14. A 15. C 16. D 17. C 18. A 19. D 20. C
B) USE
D) REMARKET EXPECTATION
4. WHICH OF THE FOLLOWING SCHEDULE OF THE COMPANIES ACT, 1956 DEALS WITH
DEPRECIATIONS?
A) SCHEDULE XIV
B) SCHEDULE V
C) SCHEDULE XIII
D) SCHEDULE X
5. SCHEDULE XIV HAS PRESCRIBED RATES OF DEPRECIATION FOR DOUBLE SHIFT AND
TRIPLE SHIFT WORKING FOR WHICH ONE OF THE FOLLOWING ASSETS?
A) BUILDING
D) SHIPS
6. IF THE BOOK VALUE OF AN ASSET STANDS AT ……..PER CENT OF THE ORIGINAL COST,
A COMPANY NEED NOT PROVIDE DEPRECIATION ON IT.
A) TWO
B) FIFTEEN
C) FIVE
D) TEN
A) SLM
B) WDV
D) CAPITAL RESERVE
1. B 2. D 3. C 4. B 5. C 6. D 7. A 8. C 9. D 10. B
GOVERNMENT AUDIT
1. AS PER C & AG ACT, 1971 THE TENURE OF THE COMPTROLLER AND AUDITOR GENERAL IS …….YEARS
A) FOUR
B) FIVE
C) SIX
D) SEVEN
2. THE PART OF GOVERNMENT AUDIT, WHICH IS CONCERNED WITH EXAMINING WHETHER THE MONEY
HAS BEEN SPENT FOR THE PURPOSE SPECIFIED IN APPROPRIATION ACT, IS CALLED.
A) AUDIT OF SANCTIONS
A) PROPRIETY AUDIT
C) AUDIT OF RECEIPTS
D) AUDIT OF EXPENDITURE
4. THE INCOME TAX DEPARTMENT HAS SENT MR. X DOUBLE REFUND OF ADVANCE TAX. THE
GOVERNMENT AUDITOR DETECTED THIS WHILE CONDUCTING
A) AUDIT OF EXPENDITURE
B) PERFORMANCE AUDIT
D) AUDIT OF RECEIPTS
5. AUDIT OF DEBT, DEPOSITS AND REMITTANCES DOES NOT COVER
A) AUDIT OF BORROWINGS
C) AUDIT OF SANCTIONS
D) REMITTANCE AUDIT
6. A STATE GOVERNMENT SPENT RUPEES FIFTY LAKHS ON RENOVATION OF RAJ BHAVAN’ FOR ITS
GOVERNOR. IN THE C & AG’S OPINION, THIS EXPENDITURE WAS MORE THAN WHAT OCCASION
DEMANDED? IT IS AN EXAMPLED OF –
A) PROPRIETY AUDIT
B) PERFORMANCE AUDIT
8. THE C & AG, SOME YEARS AGO, GAVE ADVERSE COMMENTS ON EXPENDITURE INCURRED ON BUYING
COFFINS FOR SOLDIERS KILLED IN A WAR. IN HIS OPINION, THE COFFINS CASES IMPORTED COULD HAVE
BEEN REPLACE WITH LESS EXPENSIVE, DOMESTICALLY PRODUCED ONES. THIS IS AN ASPECT OF –
A) AUDIT OF SANCTIONS
B) THE C & AG
C) THE LEGISLATURE
GOVERNMENT AUDIT
1. C 2. B 3. B 4. D 5. C 6. A 7. B 8. D 9. A 10. B