Top 150+ Solved Audit Taxation MCQ Questions Answer
Q. Audit programme provides instructions to the audit staff and reduces scope for
a. Understanding
b. Misunderstanding
c. Negligence
d. Liabilities
Q. Audit programme helps in fixing the ______for the work done among the audit staffas work done may be traced back to the individual staff members.
a. Remuneration
b. Liabilities
c. Negligence
d. Responsibility
Q. On completion of an audit _______serves the purpose of audit record which may beuseful for future reference.
a. Audit programme
b. Audit working papers
c. Audit plan
d. Audit notes
Q. Audit programme is prepared by _____
a. The auditor
b. The client
c. The audit assistant
d. The auditor and his audit assistants
Q. The auditor has to obtain _______ to substantiate his opinion on the financialstatements.
a. Internal evidence
b. External evidence
c. Internal and external evidence
d. Sufficient and appropriate evidence
Q. The quality of information generated by the audited organization is directly related tothe strength of the organization’s ______
a. Internal check
b. Internal control
c. Internal audit
d. All of the above
Q. _______ are the documents prepared or obtained by the auditors in connection withthe audit.
a. Audit notes
b. Audit working papers
c. Audit report
d. All of the above
Q. Working papers helps in proper _______ of audit.
a. Planning
b. Performance
c. Planning and performance
d. Execution
Q. The Auditors Working Papers are divided into two parts
a. Permanent audit file and current audit file
b. Permanent audit file and temporary audit file
c. temporary audit file and current audit file
d. current audit file and transitory audit file
Q. A statutory auditor-------- also as internal auditor of the company
a. Can act
b. Cannot act
c. Though can act but ethically should not act
d. None of the above
Q. Audit of a bank is generally conducted through:
a. Routine checking
b. Couching
c. Balance sheet audit
d. Profit & Loss.
Q. An auditor is liable for his annual audit of accounts o:
a. Creditors
b. Bankers
c. Owners
d. Debtors.
Q. Which of the following is not true about opinion on financial statements?
a. Auditor should express an opinion on financial statements.
b. His opinion is no guarantee to future viability of business
c. He is responsible for detection and prevention of frauds and errors in financial statements
d. He should examine whether recognised accounting principle have been consistently
Q. Auditing standards differ from audit procedures in that procedures relate to
a. Audit assumptions
b. acts to be performed
c. quality criterion
d. methods of work.
Q. Which of the following is the most appropriate potential reaction of the auditor to his assessment that the risk of material misstatement due to fraud is high in relation to existence of inventory?
a. Visit location on surprise basis to observe test counts
b. Request inventory count at a date close to year end
c. Vouch goods sent on approval very carefully
d. Perform analytical procedures.