Auditing MCQ'S Answers
Auditing MCQ'S Answers
TYBBI
SEM V
AUDITING
5. When the auditor is an employee of the organization being audited, the audit is classified as
a) Internal
b) External
c) Compliance
d) Both A&B
8. Auditor should see that amount received for premium on issue of shares should be shown in
a) Subscribed capital
b) Capital Reserve account
c) Share Premium account
d) Paid- up capital account
10. ______ is the medium through which an auditor expresses his opinion on the state of affairs of
the client’s business.
a) Audit report
b) Audit certificate
c) Audit programme
d) Audit planning
12. The audit that is made compulsory under statute is called ________
a) Statutory audit
b) Partial audit
c) Complete audit
d) Continuous audit
14. When a transaction has not been recorded in the books of account either wholly or partially such
errors are called _______.
a) Error of commission
b) Error of omission
c) Compensating error
d) None of the above
28. Sole proprietary concerns are ______ to get their financial statements audited by independent
financial auditors.
a) Legally required
b) Not legally required
c) Ethically required
d) Not ethically required
31. Auditor should determine the ______ and the timing of the audit report.
a) Nature
b) Actual
c) Nature & actual
d) Form
34. Audit programme provides instructions to the audit staff and reduces scope for
a) Understanding
b) Misunderstanding
c) Negligence
d) Liabilities
35. Audit programme helps in fixing the ______for the work done among the audit staff as work
done may be traced back to the individual staff members.
a) Remuneration
b) Liabilities
c) Negligence
d) Responsibility
36. On completion of an audit _______serves the purpose of audit record which may be useful for
future reference.
a) Audit programme
b) Audit working papers
c) Audit plan
d) Audit notes
38. The auditor has to obtain _______ to substantiate his opinion on the financial statements.
a) Internal evidence
b) External evidence
c) Internal and external evidence
d) Sufficient and appropriate evidence
39. _______ are the documents prepared or obtained by the auditors in connection with the audit.
a) Audit notes
b) Audit working papers
c) Audit report
d) All of the above
42. Failure to give notice regarding filling of casual vacancy to the Central government is an offence
punishable with fine, who of the following are the persons on whom such fine can be imposed. a)
Directors b) Company c) Every officer of the company d) Company or every officer of the company
43. A statutory auditor-------- also as internal auditor of the company. a) Can act b) Cannot act c)
Though can act but ethically should not act d) None of the above
44. A person shall not be qualified to be appointed as an auditor of the company if he is in the
employment of ____ a) An officer of the company b) An employee of the company c) Both (a) and
(b) d) None of the above
45. In case of insolvency or unsound mind, a person will automatically be disqualified for
appointment as an auditor, because a) He is not a person of repute b) He cannot take decision
properly c) He is not wealthy d) He ceases to be a member of ICAI
46. The auditors have the right to attend a) Board meeting b) Annual general meeting c)
Extraordinary general meeting d) Any general meeting
47. The retiring auditor does not have a right to______ a) To make written representation b) Get his
representation circulated c) Be heard at the meeting d) Speak as a member of the company
48. In comparison to the independent auditor, an internal auditor is more likely to be concerned
with _______ a) Cost accounting system b) Internal control system c) Legal compliance d)
Accounting system
49. Whether the management can restrict the scope of work of an external auditor? a) Yes b) No c)
In some cases d) If shareholders permit
50. It is the duty of the auditor to ________ to the members of the company on the Accounts
examined by him. a) Give suggestions b) Comment c) Refer certain points d) Make a report