93. d) External audit d) None of the above a) Error C 119. has become out of date or unserviceable. c) Civil & Criminal Statutory liabilities of an auditor include ________. a. b) Throughout the year Civil liability of an auditor implies liability for a) Misappropriation of cash b) Misappropriation of goods c) Fraud d) Misfeasance 19. d) Skeleton Payment for goods purchased should be vouched with the help of 74. b) An employee of the company a) Annual report statements. b) Allow payment of dividends d) All of these b) Annual a) Liability under Companies Act 2013 a) Responsible & senior officers d) The central government b) External evidence _______ refer to specific accounting controls relating to particular transactions a) Fixed assets D 93. b) Inquiry B 137. a) Purchase transactions d) All of the above a) Resignation of the auditor b.) a) Vouching The primary responsibility for establishing and maintaining an internal control rests with a. d) Clean report, 200. b) Wage sheets a) Not allow payment of dividend b) Partial audit b) Unqualified opinion b) External audit evidence b) Subscribed capital a) 100 days of issue of prospectus b) Vouching with original documents Complete auditB. These quiz objective questions are helpful for competitive exams. affairs of the client’s business. c) Internet auditing Gkseries provide you the detailed solutions on Auditing as per exam pattern, to help you in day to day learning. b) Clerks b) To avoid errors in the wage sheet b) Environmental audit In the case of a company in which not less than _______% of the subscribed share capital is held whether singly or in combination by certain special institutions and bodies, the appointment or re-appointment of auditors shall be made at each annual general meeting by a special resolution. c) Internal check c) Examination of books, accounts or vouchers 176. b) Blue box approach c) Employer c) Cost audit The auditor has to obtain _______ to substantiate his opinion on the financial the________ of the company. 166. 61. b) Design Rule Check 87. Auditor should be dutiful like a b) Work of auditor A special auditor is appointed by the a) Board Meeting (BM) The auditor should discuss the observation with the management and there is no need of any written communication. c) Copy of Sales Invoice d) 80 days of issue of prospectus A b) Smaller concerns 30. All of the above. 11 Window dressing implies_______________? 134. c) Internal audit 185. c) Contingent assets A 184. c) Share Premium account D 50. d) 9 Payment for wages should be vouched with the help of 11. Premium received on issue of shares, later forfeited, should be transferred to C 77. b) Nature Government have established the __________, a specialized, multidisciplinary organization to deal with cases of corporate fraud. its incorporation the _______ may appoint the first auditors. c) Audit programme For checking that allotment of shares has been properly made, an auditor should refer When the auditor is an employee of the organization being audited (auditee), the audit is classified … 43. 154. Protect the interests of the minority … a) Rules A 154. d) None of the above Lower, Higher, Higher. The quantity of audit evidenceD. Bonus shares are issued to _______. b) Financial c) Journal proper Total fixed deposits should not exceed ____% of paid up share capital and Internal control system reduces the possibility of occurrence of employee fraud and management fraudC. The Auditors Working Papers are divided into two parts 46. d) A practicing-chartered accountant, 7. 107. ______ contains information pertaining to financial history, memorandum of 18 Which of the following statements is most closely associated with analytical procedure applied at substantive stage? b) Adjustment voucher 89. 22. Propriety audit refers to The value or the reputation of the firm is represented in the form of _______. a) Interest on capital b) Sign the audit report B b) Internal accounting a) Limitations a) Board of directors c) Both (a) and (b) b) Qualified report c) Postal sales C should c) Valuation has nothing to do with verification a) Statutory and private audit appointment as an auditor, because 41. A 133. In comparison to the independent auditor, an internal auditor is more likely to be b) Audit report May be eliminated for an account balance under certain conditionsB. c) The audit assistant 190. b) On acquisition of running business d) None of the above Balance sheet auditC. b) Efficiency audit 110. A 155. c) Cost price or market price whichever is less d) All of the above d) current audit file and transitory audit file execution of audit. a) Government d) Shareholders minutes Book a Which of the following is . free reserves. C 89. c. Both use similar methodologies in performing their work. d) Audit of accounts at the end of the year a) Removal of an auditor ______ lays out the strategies to be followed to conduct an audit. C 134. c) Common key management a) Decide if they want to accept the engagement b) Internal audit d) All of the above, 195. ______ is a method of valuing the assts on the basis of purchase price of the Audit programme provides instructions to the audit staff and reduces scope for c) Internal audit c) ICWA 172. b. 88. a) Qualified opinion a) Internal audit The main object of the audit of the cash book may be _____. A 176. _______ are the documents prepared or obtained by the auditors in connection with Which of the following statements is correct? 139. Accounts and auditing questions are also helpful in auditor test preparation. a) Legally required Depending upon nature audit evidence can be classified as_______ b) Fictitious assets 55. b) Death of the auditor d) Certificate of incorporation obtained d) Limitations of internal control system. a) Shareholders D Criminal liability of an auditor implies liability for c) Certificate to commence business obtained C 125. company owned or controlled by the Central Government, or by any State B 181. 140. A 55. A 129. c) Shareholders b) Internal auditor b) Amount received from Debtors d) Comptroller and Auditor General of India (C&AG) d) None of the above b) Shareholders. ________ are the assets which may arise on the happening of an uncertain event. It is the duty of the auditor to ________ to the members of the company on the d) Final c) Market value b) Cash memo a) Investigation d) None of the above Cost less depreciation. The objective of the audit planning is ________ Which among the following is not a function of the auditor? D. Purchases. 18. 112. d) None of the above a) To make written representation 160. a) Cost accountant B 63. c) Both the client and the auditor All statements are correct. The retiring auditor does not have a right to______ d) All of the above D 168. Failure to give notice regarding filling of casual vacancy to the Central government is A 187. b) 25 c) Internal and external evidence a) Fixed assets a) Bank Reconciliation Statement d) Misfeasance a) Chairman of the company B 103. 2. a) Allow Auditing Multiple Choice Questions (MCQs) and Answers Test. c) External confirmation a) Internal audit b) Internal accounting c) External audit d) Internal control 18. 8. c) Government. ______ followed by the enterprise affect the audit plan. 8 Which of the following statements is not true about continuous audit? b) Removal of an auditor GovernmentD. a) Subscribed capital It helps to accumulate evidence supporting the validity of a specific account balance. Auditor is an ________ of a shareholder c) Petty-shop keepers d) Financial The quality of information generated by the audited organization is directly related to c) Internal check Submitted by: Rasool Bux. 78. b) Capital B 99. b) Perfect accounting system b) The reasons for such deviation, and b) Capital D c. both a and b. d. neither a nor b. c) Firmness 45. b) Capital Reserve Account b) General position a) Error of commission c) Premium account d) None of the above C 80. While framing an audit plan auditor should ascertain his _____ cast by various d) All of the above d) All of these Corporate Governance MCQs? b) Correspondence with suppliers c) To ensure the correctness of time cards and piece work cards 120. b) 5 Misstatements may result from ______. Sufficient audit evidence is a measurement of ______ 188. Senior Auditor by Fpsc, Junior Auditor, Accountant, Internal Auditors, External Auditors. B 163. d) C & A – G None of the above. 19. b) Assurance Relevance Risk a) Tangible assets d) None of the above an offence punishable with fine, who of the following are the persons on whom such c) Books of accounts of clients b) Actual a) Audit report c) Client B. 69. b) Patents All of the above. D 140. A 66. c) In some cases 91. Home › Business › Auditing MCQs and Answers with FREE PDF. b) Audit working papers The term “Audit” originated from the Latin word 156. B 64. A c) Employees D 69. securities d) All of the above A company can issue Redeemable Preference shares, if authorized by B 60. The internal auditor will look after all activities of the organization in which he appointed. 129. b) Liability under the Indian Penal Code B 47. A 161. c) Perpetuate errors and frauds and conceals them Examining the physical existence and valuation of assets.B. c) Sales deeds C 111. criminal proceedings by the company, provided the judgment is in his favour. c) Banking companies D 172. financial statement taken as a whole, but he believes that he can express an opinion on _____ is the value which would be realised if a particular asset is sold when it d) None of these Examining the journal and ledgerC. b) Man made a) Accounting b) Board report 3. Auditing begins where _____ends. B 162. c) Balance Sheet items C 38. b) Error of commission Which of the following is not external audit evidence? 1000 Investigation of books of accounts and records is: D 49. Examination of vouchers related to assets.D. D 26. d) None of the above a) Cash bill Both must be independent of the company. a) Corporate security C 166. 20. 21 Floating assets are valued at____________? Confirmations from debtorsC. a) Audit notes 116. ______ is a type of voucher. 98. d) None of the above Will increase proportionately when the auditor decreases the assessed level of control riskD. d) Company or every officer of the company In case the Board of Directors fails to appoint the first auditors within one month of c) An incorrect accounting estimates Auditor has to report to_________ 182. b) Fraud Selling. c) Preparing final Accounts The objectivity and integrity of the auditorC. The auditor gives a ________ report when he is unable to give an opinion on the The internal auditors must establish and maintain a system to monitor the disposition of audit results. 25% d) Speak as a member of the company d) Certificate from the management a) Understanding 155. Posted By: Faisal Wahab on: December 31, 2019 In: Auditing Mcqs (A) Erstwhile director (X) (B) Internal auditor () (C) Relative of a director (X) (D) Only (B. and (C. (X) Staff specially appointed for the purpose B. b) Audit certificate c) Investment in immovable property c) Assurance judgment Risk Continuous auditC. d) Audit by two firms of C.A Indicates important aspects of businessD. a) Continues audit A. a) Not legally compulsory c) ASB d) None of the above, 199. a) Matters of future importance 51. Unless a contingent liability is quite negligible, its existence should be disclosed by an B 138. The auditor must have a thorough understanding of the entity, the client’s business 7 Institute of Chartered Accountants of Pakistan was established in____________? 44. b) Agent d) None of the above Final audit implies DisproportionatelyC. b) Right to obtain information and explanation from officers a) Subscribed capital b) Error of omission (c) The name of registrar of companies D 74. b) Articles of association a) Corporate office Internal audit is undertaken: By independent auditor. 38. a) Management 123. a) Give suggestions DirectlyD. Scope of Internal Audit. We provide all important questions and answers from chapter Auditing. b) Internal audit B 164. d) Paid- up capital account c) Remuneration of an auditor of directors. 65. a) Financial audit If there is capital loss, the auditor should d) 7 4 Audit of banks is an example of_____________? d) Balance sheet and profit and loss account c) Prospectus 170. We provide all important questions and answers from chapter Auditing. 72. b) Internal check d) None of the above, 198. D 132. b) To identify potential problems a) Cost D 108. c) Govt. 145. a. 90. c) Compulsory as per companies act b) Not legally required A. Statutory and private. When it is objective and relevantD. ShareholdersB. D. Continuous audit. 5 Concurrent audit is a part of____________? d) All of the above B 169. c) Internal check d) Creditors d) Responsibility The company has appointed CA. B 100. D Auditor report is addressed to the members of the company and is considered at d) None of the above b) Annual audit Staff specially appointed for the purposeB. C 109. 3 The general standards stress the importance of a. evidence accumulation. Eshaan as statutory auditor of the company for the year 2018-19. d) Every financial statement c) Audit working note concerned with _______ Not be checked by auditorD. a) 1/3 majority d) Decision making 60. d) Sufficient and appropriate evidence 27. c) Shareholders 24. Prior year’s errorsB. Internal auditor is an auditor appointed by the management. a) Shareholders D 52. a) Cost audit c) Planning and performance and not more than 6 months is called _______. of_________ Interim audit. b) Audit of joint stock companies C 114. When issuing unqualified opinion the auditor who evaluated the audit findings should be satisfied that the ______________. b) Performance audit c) Central Government When a transaction has not been recorded in the books of account either wholly or 79. d) None of the above, 196. b. the personal qualities which the auditor should possess. 27 Which of the following factors is most important in determining the appropriations of audit evidence? B 142. Balance sheet audit is also known as b) Purchase Invoice The meeting held by the company with in a period of not less than one month a) A watch dog c) Salesman 169. D 101. Checking of WastagesC. Internal check is carried on by D a) Template voucher Cash sales can be done through ________. a. c) Enquiring accounting and control systems a) Establish controls and executes them Shareholders minute book should be vouched for d) None of the above c) Final, Interim, management audit C 199. C 95. d) Salary Sheet A statutory auditor——– also as internal auditor of the company. The registered office clause of memorandum of association contains (a) The name of the state in which the registered office of the company is to be situated. 16. _______ is the examination of all documentary evidence which are available to a) Can act b) Company d) All of the above Management audit otherwise called as _______. 9. _______ determine whether the layout satisfies certain rules specified by the c) Beginning of the year 163. c) Intangible assets b) Cannot paid by way of dividends Powers and rights of an auditor include ________. Gkseries provide you the detailed solutions on Auditing as per exam pattern, to help you in day to day learning. d) None of the above 23. a) A person or entity under common control 181. 100. c) Appointment of an auditor Shown under _______ Logical equivalence internal auditor is appointed by mcq d ) All of the above 28 ) \Goods inward d. 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