4 - Auditing MCQ 50
4 - Auditing MCQ 50
Auditor
151-200 Solved MCQ’s
By
1. Which of the following statement is
incorrect
a) 1 b) 2 c) 5 d) 6
a) To BoD of Company
b) To the Members of Company
B
c) To CG
d) To RoC
D
a) Whose revenue from exports in Forex exceeds 75% of total
revenue
b) Which is operating from SEZ
c) Which is engaged in generation of electricity for captive
consumption through captive generation plant.
d) All of these
a) 30 b) 60
c) 120 d) 180
10. Any casual vacancy in the office of cost auditor of
company is filed by
a) Standards on Auditing
b) Basic principles of cost audit
C
c) Cost Audit Standards d) Standards on Related Services
12. Cost audit report shall be submitted by Cost auditor to BoD
within __________ days from closure of FY
a) 90
c) 150
b) 120
d) 180 D
13. When credit purchases of Rs. 5100 is recorded on credit
side and credit sales of Rs. 5100 is recorded on debit side, this
kind of error is called____________________.
a) Error of omission.
principle.
b) Compensating error. c) Error of
d) Error of commission.
B
14. If, as a result of s misstatement resulting from fraud, the
auditor encounters exceptional circumstances that bring into
question his ability to continue performing the auditor shall-
a) Fraud by employees B
b) Fraud by management & TCWG
c) Both (a) and
D) d) None of these
21. Primarily prevention and detection of fraud are the
responsibilities of A
a) TCWG and Management of entity
b) Internal Auditor of entity
c) External Auditor of entity d) All of above
D
22. Which of the following in not a fraud through
suppressing cash receipts:
d) All of above
d) Audit Planning
C
36. Who will take responsibility for overall quality in an
audit of financial statements
d) All of these
C
38. Appointment of engagement quality control
reviewer is mandatory in case of audit of financial
statements of
a) Any entity
b) Any entity except One Person Company and Small
Company
c) Listed Entity
d) None of these
39. Which of the following in not element of quality
control in an audit of financial statements D
a) Leadership Responsibilities
a) Engagement partner
B
a) Employees promoted possess the appropriate
characteristics to perform competently
b) Personnel will have the knowledge required to fulfill
responsibilities assigned
c) The extent of supervision and review in a given instance
will be appropriate
d) All of the above are reasons
a) Recruitment
c) Competence
b) Capabilities
d) All of above D
44. The auditor shall B
a) Establish audit strategy on the basis of overall audit plan.
b) Develop overall audit plan on the basis of audit strategy
c) Both (a) and (b)
d) None of these
a) Less
b) More
c) Equal
B
46. Planning is _______________ process of an audit
that often begins shortly after (or in connection with)
the completion of the previous audit and continues
until the completion of the current audit engagement.
a) Continuous
b) Discreet
c) Neither continuous nor discreet
A
47. The auditor shall develop an audit plan that include
a description of:
B
a) The nature, timing and extent of planned risk assessment
procedures.
b) The nature, timing and extent of planned further audit
procedures at the assertion level.
c) Other planned audit procedures that are required to be
carried out so that the engagement complies with SAs.
d) All of the above
D
48. An auditor who accepts an audit but does not
possess the industry expertise of the business entity
should
a) Engage experts
b) Obtain knowledge of matters that relate to the nature of
entity’s business
c) Inform management about it
d) Take help of other auditors
49. Auditor can obtain knowledge of client’s business
from
D
a) Discussion with people within client entity
b) Publication relating to industry
c) Previous experience
d) All of these
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