Correct : A. Examination of accounts of business units only
2. Main object of auditing is
Correct : B. To find out whether P&L a/c and B/S show true and fair state of affairs
3. Auditing is luxury for a
Correct : C. Small shop-keeper
4. Limitation of audit is
Correct : D. All of the above
5. Internal Audit is undertaken
Correct : C. By a person appointed by the management
6. Final audit implies
Correct : A. Audit of accounts at the end of the year
7. Institute of Chartered Accountants of India was established on
Correct : D. 1 st July,1949
8. Joint audit implies
Correct : D. Audit of two firms of C.A.
9. The term auditing was associated with
Correct : A. Hearing of accounts
10. The scope of auditing is
Correct : B. Wide
11. The arrangement of duties of staff in such a manner, that the work of one person is automatically checked by another during the course of carrying out, recording and processing a transaction.
Correct : A. Internal check
12. The object of internal audit is
Correct : A. To detect frauds and errors
13. The process of inspecting a document that supports a recorded transaction in order to verify the authority and authenticity of such a transaction
Correct : C. Vouching
14. Which of the following is not the procedure for vouching of cash sales:
Correct : D. Examine balance sheet
15. Who is responsible for the verification of assets?
Correct : A. Auditor
16. Which of the following object is not included while verifying the liabilities by the auditor?
Correct : D. All of the above
17. The work of one clerk is automatically check by another clerk is called
Correct : B. Internal check.
18. Which of the following is not a kind of audit?
Correct : D. None of these.
19. The audit that is made compulsory under statute is called _________.
Correct : A. Statutory audit.
20. This kind of audit is conducted generally between two annual audit ______.
Correct : B. Interim audit.
21. Voucher relates to _________.
Correct : D. All the above.
22. To verify cash transactions, it is necessary
Correct : D. All of the above.
23. In case of sales return, the auditor should check.
Correct : D. Credit notes and goods received notes.
24. Which of the following is an importance of vouching?
Correct : D. All the above
25. The elements of auditing includes –
Correct : D. All of the above
26. Interim Audit refers to an audit conducted
Correct : B. In between two annual audits
27. Errors occurring when generally accepted accounting principles are not observed while recording any transaction in the books of accounts
Correct : C. Errors of principle
28. Before the work of audit is commenced, the auditor prepares a written procedure needed to implement the audit work
Correct : C. Audit programme
29. The work of one clerk automatically checked by another clerk is called
Correct : B. Internal check
30. Section 138 of the Companies Act, 2013 made internal audit compulsory for
Correct : C. Both (a) & (b)
31. “The process of inspecting documents that supports a recorded transaction in order to verify the authority and authenticity of such a transaction” is
Correct : A. Vouching
32. The process of substantiation of assets and liabilities recorded in the books of accounts by physical inspection and examination of legal and official documents to form and expert opinion
Correct : C. Verification
33. The term „Audit‟ is derived from the Latin word “Audire” which means
Correct : B. To hear
34. A systematic and independent examination of data ,statements,records,operations,and performance(financial or otherwise) for a stated purpose. In any auditing situation,the auditor perceives and recognizes the propositions before him for examination,collects evidence,evaluates the same and on the basis formulates his judgement which is,communicated through his audit report.” This definition is given by
Correct : C. ICAI
35. An error occurs due to negligence in recording the details of transaction, such errors are of clerical nature and are of wrong entries,wrong positioning,additions,transfer,etc.. is called
Correct : A. Errors of Commission
36. The primary objective of auditing is to
Correct : A. To examine the reliability and validity of financial statements.
37. Audits should be based on the six principles,according to
Correct : A. ISO 19001:2011
38. Under technique of Auditing,Documents which have their origin in the hands of the third party and held by them is
Correct : D. Most reliable evidence.
39. Audit of partnership firm is under
Correct : C. Audit of other organizations not covered by any law
40. The external auditor are usually appointed by
Correct : D. The owners and in some cases by the government.
41. The first auditor of company will hold office
Correct : C. Till the conclusion of first annual general meeting
42. Remuneration of a company auditor is fixed by the
Correct : D. Appointing authority
43. A company auditor in general has to submit his report to
Correct : A. Shareholders
44. Auditor should be dutiful like
Correct : A. A watch dog
45. Internal auditor has to submit report to
Correct : D. None of the above
46. An auditor is liable held criminally liable for
Correct : C. Offences against statutory provision
47. A vacancy caused by resignation of the auditor is filled only
Correct : B. At the general meeting of shareholders
48. Civil liability of an auditor implies liability for
Correct : D. Misfeasance
49. ___________of the Companies act 2013 lays down provisions regarding the eligibility of appointment of an auditor.
Correct : A. Sec 141
50. Which of the following is not types of auditor
Correct : D. Last auditor
51. In case of first auditor appointed by the board of directors, who would fix remuneration
Correct : A. Board of directors
52. The tenure of first auditor shall be from the date of appointment till
Correct : A. The conclusion of first annual general meeting
53. Forming an opinion on the financial statements the auditor‟s report shall be in
Correct : A. Writing
54. Which of the following is an element of the Audit Report
Correct : D. All of the above
55. The auditor who authorized the issue of misstatements in prospectus can be
imprisoned for a term which may extend to
Correct : D. 10 years
56. Which of the following is not the types of audit report based on the kind of opinion
Correct : D. None
57. In case the Board of Directors fails to appoint first auditors, the shareholders shall appoint them at _______ by passing a resolution.
Correct : A. Extraordinary general meeting.
58. Which of the following statement is not correct regarding removal of first auditor
before expiry of the term?
Correct : B. The approval of the central government is required for such removal.
59. The board of directors shall appoint first auditor of a company ___________.
Correct : D. Within one month of incorporation of the company.
60. The first auditor of a government company shall be appointed within 60 days from the
date of registration of the company by.
Correct : B. The Comptroller and Auditor General of India
61. The liabilities of an auditor can be _________.
Correct : C. Civil and Criminal.
62. Which of the following statement is not correct regarding basic features/ elements/ form of an Audit Report
Correct : D. None of these
63. is issued when the auditor is completely satisfied that there is nothing objectionable
Correct : A. Standard Unqualified Report or Clean Report
64. A casual vacancy in the office of an auditor shall be filled by.
Correct : A. Board of Directors.
65. Who among the following cannot be appointed as auditor of a company?
Correct : D. Both (b) & (c)
66. First auditor of a company shall be appointed by the Board of Directors within
Correct : A. 30 days
67. Removal of auditor that requires special resolution and previous approval of the Central Government
Correct : C. Removal of Auditor before expiry of term
68. The section which contains provisions regarding remuneration of the auditor is
Correct : B. Section 142
69. The principal rights conferred upon the auditor by the Companies Act, 2013
Correct : A. Right to sign audit reports
70. The matters on which an auditor has a duty to report under Section 143 (3)can broadly
divided into two categories, namely
Correct : A. Statement of fact and opinion
71. Report issued when the auditor on the basis of sufficient appropriate audit evidence, concludes that misstatements are both material and pervasive to the financial statement
Correct : D. Adverse report
72. The sections of the Act under which an auditor ac be held criminally liable are
Correct : D. All of the above
73. An arrangement of accounting routine that errors and frauds are automatically prevented or discovered by the very operation of bookkeeping itself is called
Correct : B. Internal check
74. The examination of documentary evidence in support of transactions contained in the books of accounts is referred to as
Correct : D. Vouching
75. Section --------------of the companies Act,2013 detailed the qualification of company
Auditors.
Correct : A. 141
76. The first auditor of a company, other than a Government company, shall be appointed
by
Correct : D. Board of Directors.
77. Select which one is not under the right of an Auditor
Correct : D. Right to select the next auditor
78. The civil liability of an auditor can be for
Correct : C. Negligence and misfeasance
79. Section ---- of the companies Act governs the audit of branch offices.
Correct : D. 228
80. Sub-section (1A) of section 227 of the Companies Act specifies -----matters, which
are required to be looked into by a company auditor.
Correct : A. 6
81. A Cost Auditor is appointed by the
Correct : A. Board of Directors
82. Management Audit means
Correct : B. Evaluating performance of various management processes & functions
83. Report of Cost audit should be submitted to
Correct : C. Central Government
84. A Tax Auditor of a firm/proprietary concern is appointed by
Correct : D. All of the above
85. The Cost auditor is concerned mainly with accounts related to
Correct : A. Cost
86. The Management Auditor has to submit the audit report to
Correct : C. Management
87. Compulsory Tax Audit U/S 44AB is applicable for
Correct : D. 4 categories of Assessees
88. The Cost auditor has to serve the interest of
Correct : B. Management
89. The verification of the correctness of cost accounts and of adherence to the cost accounting plan is known as
Correct : A. Cost Audit
90. A comprehensive and critical review of all aspects of management process
Correct : C. Management Audit
91. The management auditor may be appointed by
Correct : C. Shareholders or board of directors
92. The audit fees and expenses incidental to audit shall be determined by
Correct : A. The Chief Commissioner
93. Which of the following is not audit software?
Correct : D. Micro Software
94. The full form of CAAT
Correct : A. Computer Assisted Audit Techniques
95. Black box Approach is an approach which is also known as
Correct : A. Auditing around the computer
96. The process of collecting and evaluating evidence to determine whether a computer system safeguards assets, maintains data integrity, achieves organizational goals effectively, and consumes resources efficiently.
Correct : A. Electronic data processing
97. Tax audit comprises of
Correct : D. All of the above
98. Who among the following can be appointed as cost auditor of a company?
Correct : B. Cost Accountant within the meaning of Cost and Works Accountants Act, 1959
99. Who among the following can conduct tax audit?
Correct : A. Practicing Chartered Accountant
100. Cost audit is a verification of cost records to estimate the ________ efficiency of a business.