c) Audit working note Audit means _______. Civil liability of an auditor implies liability for a) Misappropriation of cash b) Misappropriation of goods c) Fraud d) Misfeasance 19. d) Cost less depreciation When it is enough to provide a basis for giving reasonable assurance regarding truthfulnessC. The auditor’s remunerationC. b) Audit working papers 21. An audit programme is a set of _______ which are to be followed for proper Window dressing implies Gkseries provide you the detailed solutions on Auditing as per exam pattern, to help you in day to day learning. company. 89. Investigation is required when a) Subscribed capital b) Verification is a part of valuation 125. Effective internal control system provides reliable audit evidenceC. b) Owners All are correct. d. Both A&B, 8. Lower, Lower, HigherC. f) Board of Directors c) Unqualified opinion Cost less depreciation. D. if he is an auditor of the company. 99. d) Sufficient and appropriate evidence a) Statutory duties imposed by the Companies Act 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. a) Board of directors C 102. c) Appointment of an auditor Bank statements obtained from the clientB. c Internal auditors are responsible to: a. the board of directors. d) All of the above Application money should not be withdrawn unless c) Audit plan b) Balance sheet c) Corporate Frauds Investigation Office (CFIO) ANSWER: A any person. 190. a) 7 a) Cash bill ______ audit is the process of evaluating a firm’s various operating 142. An audit conducted throughout the year or at the regular intervals of time is b) Owners d) An insurer 154. 46. c) Error of duplication c) Shareholders statements A. 168. under _______. Divisible profit should not include 191. d) All of the above c) Central Government Auditing MCQs taken from previous NTS,PTS,FPSC,SPSC,PPSC,OTS, SBP IBP tests for government jobs in Pakistan.Prepare well for mcqs related to Auditing portion in tests c) Inspection of securities d) Responsible officials A 36. d) All of the above g) Central Government c) All of them 28 When is evidential matter, generally, considered sufficient? d) Financial 18 Which of the following statements is most closely associated with analytical procedure applied at substantive stage? d) None of the above d) Company Law board partially such errors are called _______. D 165. a similarity between external and internal auditors? 25 In an audit of financial statements, substantive tests are audit procedures that __________? 17. c) Investment in immovable property Which of the following item is not suitable for test checking? _______ are the documents prepared or obtained by the auditors in connection with c) Remuneration of an auditor a) Audit note book 164. procedures, code of conduct, and other factors to determine its effect on the society. D a) Can be paid by way of dividends d) External interested parties d) Final b) Patents Current audit file consists of _________. 135. d) 7 c) Employer a) Audit report factory by which the duties of various clerks are arranged in such a way that the work B. to know that all receipts and payments have been properly recorded. 29 Which of the following is not corroborative evidence? c) Premium account 33. Statutory liabilities of an auditor include ________. c) Accountant 88. certain items in the statements. B Prior year’s financial statements, 17 Analytical procedures issued in the planning stage of an audit, generally, Helps to determine the nature, timing and extent of other audit proceduresB. relevant vouchers. b) Policies b) Adjustment voucher b) Checking value of assets a) Memorandum of association a) Internal audit evidence A 154. b) Application controls Investigation is carries on behalf of Are designed to discover significant subsequent eventsC. b) Nature Auditing Mcqs 0. c) Management a) Balance sheet b) Balance book has become out of date or unserviceable. a) Layout versus schematic 56. d) All of the above Method of physical verification includes ___________. b) Financial a) Proper control The main object of the audit of the cash book may be _____. known as _________. A 30. a) Template voucher b) Internal audit d) All of the above 93. Every company shall preserve in good order the books of account together with the Which of the following is not a kind of audit? 90. Which among the following is an example of intangible asset? c) Internal check c) Internal control committee d) Speak as a member of the company Inventory valuation. 14 ______the audit risks_______the materiality and_________the audit effort. c) Common key management D 78. Sole proprietary concerns are ______ to get their financial statements audited by a) Legally required A 23. c) Internal check a) Capital reserve B 70. c) Assurance judgment Risk A 145. While framing an audit plan auditor should ascertain his _____ cast by various c) Perpetuate errors and frauds and conceals them C 166. _______ refer to specific accounting controls relating to particular transactions C 197. d) None of the above ... All internal audit seniors must be Certified Internal Auditors. 192. a) Error Indicates important aspects of businessD. 186. c) Both of (a) and (b) a) Rules A 83. Cost or Market price whichever is lower.D. b) Throughout the year a) Understanding b.) b) Death of the auditor Examination of vouchers related to assets.D. At the planning state, the auditor considers materiality at the financial statement level only. Scope of Internal Audit. a) Inspection 7. a) Comptroller and Auditor-General of India d) None of the above 53. b) Removal of an auditor Which of the following are performed as risk assessment procedures? A person shall not be qualified to be appointed as an auditor of the company if he is in b) Under valuation of assets b) Articles of association Internal audit is undertaken: By independent auditor. Bonus shares are issued to _______. b) Audit undertaken to improve auditing systems a) Goodwill a) Efficiency audit Audit programme provides instructions to the audit staff and reduces scope for Errors of omission are C b) Existing share holders 23 Of the following, which is the least persuasive type of audit evidence? 87. The reliability of audit evidence is influenced by its b) Secured loans 118. Payment for wages should be vouched with the help of b) Balance sheet a) Unsecured loans May be test of transactions, test of balance and analytical procedures, 26 The nature, timing and extent of substantive procedures is related to assessed level of control risk, RandomlyB. Auditing Mcqs, Audit Mcqs for preparation of various posts i.e. B 41. a) Fraud is suspected in business Misstatements can arise from ______. Not be checked by auditorD. a) Chairman of the company 113. D 23. c) C & A – G A statutory auditor——– also as internal auditor of the company. d) None of the above b) Verification of accounts c) Compulsory as per companies act D 124. d) None of the above c) 8 ______ is a method of obtaining audit evidence. 34. A 173. B 64. Prior year’s errorsB. c) Negligence C 190. Mr. A is appointed as an auditor for XYZ bank. a) Audit planning c) Compensating errors D 168. d) Need not possess any professional qualification b) 25 c) In some cases a) Internal control Adjusted interim financial statementsD. d) None of the above 20. b) Internal audit 100. b) 120 days of issue of prospectus a. 28. c) Cost audit report, if any financial statement taken as a whole, but he believes that he can express an opinion on a) Memorandum of association AUDITING Multiple Choice Questions and Answers pdf download for freshers experienced AUDITING mcqs faqs,objective certification interview questions. 11. _______ is the specific guidelines and directions for efficient and effective It is needed when the organization has a good internal control systemD. a) Shareholder d) Shareholders minutes Book a) Permanent audit file and current audit file 78. C 48. D 50. d) Limitations of internal control system. Object of verification of assets c) Books of accounts of clients The internal auditors c. Management and those charged with governance d. (c) The name of registrar of companies C 121. d) None of the above c) Directors of the business Carbon copies of sales invoices inspected by the auditorD. Partial auditing is usually done by The primary responsibility for establishing and maintaining an internal control rests with a. D 67. D 97. c) Enquiring accounting and control systems It is conducted at regular intervalB. C 109. Which of the following is not a kind of audit? 12. 96. b) Market value method ______ lays out the strategies to be followed to conduct an audit. c) Government C 180. It helps to accumulate evidence supporting the validity of a specific account balance. Amount of known misstatement is documented in working papersB. 137. c) Instructions b) Recalculation 157. Manipulation of accounts is done by _______. The auditor should discuss the observation with the management and there is no need of any written communication. d) Execution 173. d) Accounting system d) C & A-G. 17. D c) Both a&b 119. _______ determine whether the layout satisfies certain rules specified by the D 76. d) Audit notes D 132. 15 When issuing unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the___________? 3 The general standards stress the importance of a. evidence accumulation. The term ________ implies an examination of accounts and rewards for some special Remuneration of an internal auditor is fixed by ______. C 62. c) Internal audit B 163. b) Cannot paid by way of dividends a) Decide if they want to accept the engagement b) To avoid errors in the wage sheet c) Auditor made c) Valuation has nothing to do with verification b) Fraud c) Audit report c) Internal and external evidence Depending upon source audit evidence can be classified as These quiz objective questions are helpful for competitive exams. B. execution of audit. On appointment of subsequent auditors, the company must give intimation within 7 C 171. d) None of these d) None of the above, 196. An auditor most likely would be responsible for assuring that management communicates significant deficiencies in the design of the internal control: A. to a court-appointed creditors' committee when the client is operating under Chapter 11 of the Federal Bankruptcy Code. ______ followed by the enterprise affect the audit plan. a) To make written representation Auditor report is addressed to the members of the company and is considered at The retiring auditor does not have a right to______ d) Statutory audit Evidence obtained from outside sources routed through the clientD. A 179. d) None of the above d) Certificate from the bank D d) None of the above b) Chartered accountant B 164. c) Green box approach Preliminary expanses not written off are treated as association, articles of association of a company. D 101. C. Credit transactions C 199. D 196. d) Make a report b) Disallow it a) Proper supervision over stock 105. d) Ledger accounts C. By a person … a) An inaccuracy in gathering or processing data from which financial statements are B 178. 115. 126. Investigation of books of accounts and records is: Internal check is carried on by b) Audit for submitting report immediately at the end of the year Home › Business › Auditing MCQs and Answers with FREE PDF. d) London oil Storage Co. case None of the above. c) Cost method Cash sales can be done through ________. ________. b) Marketing executive b) Subscribed capital c) Logical equivalence checking the strength of the organization’s ______ d) Minute book b) To identify potential problems Audit programme is prepared by _____ Which of the following is not external audit evidence? 79. D 183. a) Resignation of the auditor d. all of the above. c) Disqualification of the auditor a) Wasting assets 41. c) Contingent assets a) Creditors statement b) Efficiency audit d) All of the above c) Assess the level of materiality that is appropriate for the audit 153. company, for any liability incurred by him in defending himself against any civil or b) A body corporate c) Financial statements b) Company law board c) \Goods inward book 24. 149. Accounts examined by him. a) An employee of the company a) Management not. C 149. a) Shareholders These accounts and auditing quiz are from fundamentals of auditing, general concepts & principles of audit, performance of audit and reporting. d) None of the above d) Financial audit 15. 193. 35. Selling. a) An officer of the company d) Certificate of incorporation obtained d) Record the transaction in journal and ledger b) Internal check 25. b) Board of Directors A 40. Which of the following is not internal audit evidence? C a) Permanent audit file c) Cost price or market price whichever is less c) Audit of joint sector companies Internal auditors are employed to educate management and staff about how the … d) Actions d) 10 The liabilities of an auditor can be ________. c) Social audit Test checking is done when there is an effective system of ________. conclusion when the subject matter information is materially misstated. Working papers helps in proper _______ of audit. 83. C 194. Joint audit implies By a person appointed by the managementD. b) Sales by travelling agents b) Vouching b) Matters relations to post years 17. a) Companies act B 99. 23. d) None of the above 91. d) None of the above D 113. C 147. c) Central Government b) Central Government a) Corporate office c) Members of the company in general meeting 140. b) An audit plan b) Employee d) Liabilities 12. b) Sale transactions c) The auditor so appointed 86. C 146. B 60. appointment as an auditor, because c) System control Auditor is an ________ of a shareholder 148. D. Continuous audit. d) All of the above A 175. 2. b) Unqualified opinion a) 20 c) Extraordinary general meeting c) Circumstances A 71. It helps to discover material misstatements in the financial statementsC. Both must be competent. d) Paid- up capital account, 11. 167. d) All of these b) RBI d) Any manufacturing companies a) Financial position Cash payment. d) External audit d) External audit A 37. C. to check the internal control system in … Duties of an auditor is _______. b) Clarity If no auditors are appointed or re-appointed at the annual general meeting, the ______ c) Examination accounts of propriety concerns c) Journal proper 4 Audit of banks is an example of_____________? a) Financial audit B 19. 75. Ltd. b) Inspection 121. b) Capital Copy right should be revalued at the date of the ________. d) Identify the potential for fraud in the financial reporting process B 156. c) Internet auditing b) Duties and obligations b) Internal check committee d. There are frequent changes of auditors lawyers. 13. Curtailment of expensesB. d) All of the above The auditing standards consist of ________. C 191. a) Fixed assets a) The deviation from the accounting standards h) State Government 27 Which of the following factors is most important in determining the appropriations of audit evidence? c. communicating the auditor’s findings to the reader. c) Contingent assets A 151. Falsification of accounts is undertaken by Internal auditor of a company must be _______. b. b) Permanent audit file and temporary audit file d) All of these 19. 182. a) Logical Equivalence Checking A. to buy another established concern, the investigator will be required to examine D 128. _____ is the value which would be realised if a particular asset is sold when it a) Take legal & technical advice b) Performance audit a) Remuneration statements. B 186. 128. c) External Confirmation 57. “Auditor is not valuer” was stated in A 104. c) Over valuation of assets days of such appointment to ______ a) Shareholders c) Adverse opinion within a) Interest on capital 14. b) Right to obtain information and explanation from officers d) Skeleton b) Internal auditor A 68. and not more than 6 months is called _______. Audit programme helps in fixing the ______for the work done among the audit staff a) A person or entity under common control strategies, processes, and measurement indicators for critical success. c) Matters relating to the year of audit B 63. an offence punishable with fine, who of the following are the persons on whom such companies 175. b) Current audit file 3. 4. b) On acquisition of running business B 177. 24. 166. All of the above. 72. A 75. b) Audit policies 81. a) Observation D 28. C 92. Checking of all transactions recorded. d) Internal check and external audit Capital profits ANSWER: a) Article 148 Article 148 provides for the office of Comptroller and Auditor General of India (CAG), while article 149 describes its role and functions, while Article 150 and 151 further describe the role of Comptroller and Auditor General of India (CAG). The reliability of audit evidence and its relevance in meeting the audit objectiveB. Materiality judgments involve both quantitative and qualitative judgmentsC. D 26. 133. d) Negative opinion a. D 69. c) Examining the authority of their acquisition 114. The auditor’s responsibility for detection and prevention of errors and frauds is similar.D. When it constitutes entire populationB. 163. 189. b) Shares Ledger By independent auditorB. c) Ethically required b) Error of commission 8 Which of the following statements is not true about continuous audit? b) Records cash receipts and cash payments a) Adverse report ________ is the cash purchase related voucher. Valuation of Fixed Assets is based on the concept 159. 6. 151. a) Bank Reconciliation Statement Charging excessive provision for depreciation results in Voucher relates to ______. D 93. c) Banking companies Eshaan as statutory auditor of the company for the year 2018-19. C 160. 144. An invitation to the public to subscribe the shares of the company is called______. 21. 63. 156. Civil liability of an auditor implies liability for D 192. c) Salesman a) Statutory audit 4. a) Paid-up capital c) Right to attend general meeting b) Secretarial audit c) Share Premium account a) Subscribed capital c) Punishment of employees Inversely. Auditor has to report to_________ A company can issue Redeemable Preference shares, if authorized by 49. a) Assurance Engagement Risk C 167. CostB. 171. B 103. c) Piecemeal report Floating assets are valued at d) Circulating assets d) None of the above It helps to study relationship among balance sheet accountsB. d) Book value 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) Not be included in the stockC. a) Commission book Which of the option highlight the ... gateways. c) Asset protection 42. c) Minute book c) Issue of bonus shares C 195. DSP Chartered Accountants have been appointed statutory auditors of Flakes Private Limited for the year 2016-17. 103. Examining the journal and ledgerC. 64. d) None of the above c) Doubtful debts Effective internal check system reduces When auditor does not have any objection regarding the information under audit then (adsbygoogle = window.adsbygoogle || []).push({}); Engineering interview questions,Mcqs,Objective Questions,Class Lecture Notes,Seminor topics,Lab Viva Pdf PPT Doc Book free download. With original documents c ) Internal evidence b ) company c ) ASB d ) memo. Resources d ) None of the total likely misstatement can not be published the... On by a ) accounting policies b ) Inquiry c ) Employees d ) All of above. Completion of an Internal auditor is fixed by ______ those which may be initiated by the organisation by... 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With ________ of Corporate fraud Statutory auditors of the above, 198 b!

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