Top 150+ Solved Audit Taxation MCQ Questions Answer
Q. An independent audit is important to readers of financial statements because it
a. Provides a measure of management's stewardship function.
b. Measures and communicates the financial data included in financial statements.
c. Objectively examines and reports on management's financial statements.
d. Reports on the accuracy of information in the financial statements.
Q. The evidence available to auditor is _______ in nature, rather _______ in nature.
a. pervasive, conclusive
b. Conclusive, pervasive
c. limited, unlimited
d. None of the above
Q. Compliance with the Standard of Auditing is the responsibility of
a. Management
b. Those charged with governance
c. Auditor
d. Audit committee
Q. An auditor is required to determine the ____ of his audit procedures according to the requirements of Standards of Auditing.
a. Conduct
b. Nature ,timing and extent
c. Limitation
d. Planning
Q. The main object of an audit is
a. Expression of opinion
b. Detection and Prevention of fraud and error
c. Both (1) and (2)
d. Depends on the type of Business
Q. The audit process is
a. special application of the scientific method of inquiry.
b. Regulated by the PICPA .c.
c. The only service a CPA is allowed to perform by law.
d. Performed only by CPAs
Q. Appropriateness means _______ of audit evidence.
a. Quantity.
b. Quality.
c. Appropriateness.
d. Sufficient.
Q. Professional judgment means a judgment taken by the auditor out of his ______in an audit situation
a. Past experience.
b. Relation with the management
c. Professional experience.
d. Work experience.
Q. A sale of Rs. 50.000 to A was entered as a sale to B. This is an example of _
a. Error of omission.
b. Error of commission.
c. Compensating error.
d. Error of principle.
Q. Goods sent on approval basis’ have been recorded as ‘Credit sales’. This is anexample of……………………..
a. Error of principle.
b. Error of commission.
c. Error of omission.
d. Error of duplication.
Q. What is the main objectives of Auditing?
a. To give an opinion as to the truth and fairness of Financial statement.
b. To finds errors.
c. To help taxation departments.
d. To help customers.
Q. Meaning of Interim Audit:
a. Audit of 12 months
b. Audit for more than 12 months.
c. Audit for less than 12 months.
d. Audit for long perio
Q. Internal Audit is conducted by :
a. Employees of an Organization.
b. Customers
c. Government
d. Employees of other Organization.
Q. Audit Evidence is obtained by:
a. Inspection.
b. Observation.
c. Inquiry and Confirmation.
d. All of the above.
Q. Which Audit is conducted to check the cost records of the company?
a. Financial Audit.
b. Operational Audit.
c. Management Audit.
d. Cost Audit