Top 150+ Solved Audit Taxation MCQ Questions Answer
Q. Internal check is a part of
a. Internal audit
b. Internal accounting
c. External audit
d. Internal control
Q. Civil liability of an auditor implies liability for
a. Misappropriation of cash
b. Misappropriation of goods
c. Fraud
d. Misfeasance
Q. If an auditor is not appointed at annual general meeting, he is appointed by the
a. The Central Government
b. Board of Directors
c. Shareholders
d. Company Law board
Q. The audit that is made compulsory under statute is called ________
a. Statutory audit
b. Partial audit
c. Complete audit
d. Continuous audit
Q. Audit means _______.
a. Recording business transactions
b. Preparing final accounts
c. Examination of books, accounts or vouchers
d. Decision making
Q. When a transaction has not been recorded in the books of account either wholly orpartially such errors are called _______.
a. Error of commission
b. Error of omission
c. Compensating error
d. None of the above
Q. The liabilities of an auditor can be ________.
a. Civil
b. Criminal
c. Civil & Criminal
d. Financial
Q. Duties of an auditor is _______.
a. Statutory duties imposed by the Companies Act
b. Duties imposed by legal or court decisions
c. Duties arising out of professional etiquette
d. All of the above
Q. Internal auditor of a company must be _______.
a. Cost accountant
b. Chartered accountant
c. ICWA
d. Need not possess any professional qualification
Q. Sec.139 (7) provides that in the case of a Government Company or any other company owned or controlled by the Central Government, or by any State Government, the first auditor shall be appointed by _________
a. Comptroller and Auditor-General of India
b. Central Government
c. State Government
d. None of the above
Q. Objectives of internal audit includes _________.
a. Proper control
b. Perfect accounting system
c. Asset protection
d. All of the above
Q. Internal control includes ________.
a. Internal audit
b. Internal check
c. Both internal audit and internal check
d. Internal check and external audit
Q. …………. is the examination of all documentary evidence which are available tosupport the authenticity of transactions entered in the client’s records.
a. Accounting
b. Vouching
c. Internal check
d. None of the above
Q. Audit done by the employees of the business undertaking is called ______.
a. Final audit
b. Internal audit
c. Company audit
d. Statutory audit
Q. Which of the following is not a kind of audit?
a. Statutory and private audit
b. Government and continuous audit
c. Final, Interim, management audit
d. None of the above