Top 150+ Solved Audit Taxation MCQ Questions Answer
Q. Which of the following is not a kind of audit?
a. Statutory and private.
b. Government and continuous audit.
c. Interim audit.
d. None of these
Q. This kind of audit is conducted generally between two annual audits.
a. Internal audit.
b. Interim audit.
c. Final audit.
d. Continuous audit.
Q. Voucher relates to ______.
a. Cash receipt.
b. Cash payment.
c. Credit transactions
d. All of the above.
Q. Auditing begins where _____ends.
a. Selling.
b. Inventory valuation.
c. Accounting.
d. Purchases.
Q. Which of the following persons is qualified to be a company auditor?
a. An employee of the company
b. A body corporate
c. A person who is indebted to the company for an amount exceeding Rs. 1000
d. A practicing-chartered accountant
Q. When the auditor is an employee of the organization being audited, the audit isclassified as _____
a. Internal
b. b. External
c. Compliance
d. Both A&B
Q. If there is capital loss, the auditor should
a. Not allow payment of dividend
b. Allow payment of dividends
c. Allow payment of dividends after making such losses good
d. None of the above
Q. Auditor should see that amount received for premium on issue of shares should beshown in ______
a. Subscribed capital
b. Capital Reserve Account
c. Share Premium account
d. Paid- up capital account
Q. A company auditor can be removed before expiry of his term by
a. Shareholders
b. Board of Directors
c. Central Government
d. State Government
Q. Sec.143 of Companies Act 20913 deals with _____
a. Powers and rights of an auditor
b. Removal of an auditor
c. Appointment of an auditor
d. Remuneration of an auditor
Q. Internal auditor is appointed by______
a. Management
b. Shareholders
c. Government
d. Statutory body
Q. ……………….is the medium through which an auditor expresses his opinion on thestate of affairs of the client’s business.
a. Audit report
b. Audit certificate
c. Audit programme
d. Audit planning
Q. ………………… is the specific guidelines and directions for efficient and effectivecompletion of the audit work on timely and daily basis, so as to minimise audit risk.
a. Audit planning
b. Audit report
c. Audit programme
d. Audit certificate
Q. ……………….. is a method of organising the accounting system of a business concern or a factory by which the duties of various clerks are arranged in such a way that the work of one person is automatically checked by another.
a. Internal control
b. Internal check
c. Internal audit
d. All of the above