Top 150+ Solved Audit Taxation MCQ Questions Answer
Q. Effective internal check system reduces
a. The liability of auditor
b. Work of auditor
c. Responsibilities of an auditor
d. None of the above
Q. Misappropriation of goods may be checked by
a. Proper supervision over stock
b. Checking of employees
c. Punishment of employees
d. None of the above
Q. Internal check is suitable for _______.
a. Larger concerns
b. Smaller concerns
c. Petty-shop keepers
d. None of the above
Q. Final audit implies
a. Finally checking of accounts to reveal frauds
b. Audit for submitting report immediately at the end of the year
c. Audit of banking companies
d. Audit of accounts at the end of the year
Q. Remuneration of an internal auditor is fixed by ______.
a. Management
b. Shareholders
c. Government
d. Statutory body
Q. The objective of the audit planning is ________
a. To give appropriate attention to all important areas of audit
b. To identify potential problems
c. To coordinate work with other auditors and experts
d. All of the above
Q. Audit papers are the property of ______.
a. Client
b. Auditor
c. Both the client and the auditor
d. The audit committee
Q. Sole proprietary concerns are ______ to get their financial statements audited byindependent financial auditors.
a. Legally required
b. Not legally required
c. Ethically required
d. Not ethically required
Q. The performance audit may be initiated by the organisation or by ____.
a. Government
b. Employees & Management
c. Shareholders
d. External interested parties
Q. Balance sheet audit is also known as …………
a. Continues audit
b. Annual audit
c. Internal audit
d. Financial audit
Q. …. lays out the strategies to be followed to conduct an audit.
a. An action plan
b. An audit plan
c. An audit programme
d. All of the above
Q. Auditor should determine the ______ and the timing of the audit report
a. Nature
b. Actual
c. Nature & actual
d. Form
Q. ……………..followed by the enterprise affect the audit plan.
a. Accounting policies
b. Audit policies
c. Accounting and Audit policies
d. Management policies
Q. While framing an audit plan auditor should ascertain his _____ cast by variouslegislations on him.
a. Limitations
b. Duties and obligations
c. Rights and powers
d. Term of appointment & responsibilities
Q. An audit programme is a set of _______ which are to be followed for properexecution of audit.
a. Rules
b. Policies
c. Instructions
d. Actions