Top 150+ Solved Auditing Corporate Governance MCQ Questions Answer
Q. Auditing refers to
a. Examination of accounts of business units only
b. Preparation and checking of accounts
c. c)Examination of accounts by professional accountants
d. d)Checking of vouchers
Q. Main object of auditing is
a. Detection of errors
b. To find out whether P&L a/c and B/S show true and fair state of affairs
c. Detection of frauds
d. Non of the above
Q. Auditing is luxury for a
a. Joint stock company
b. Partnership firm
c. Small shop-keeper
d. Government company
Q. Limitation of audit is
a. That it does not reveal complete picture
b. That it does not guarantee accuracy of accounts
c. That auditor may be biased
d. All of the above
Q. Internal Audit is undertaken
a. By independent auditor
b. Statutorily appointed auditor
c. By a person appointed by the management
d. By a Government auditor
Q. Final audit implies
a. Audit of accounts at the end of the year
b. Finally checking of accounts to reveal frauds
c. audit for submitting report immediately at the end of year
d. audit of banking companies
Q. Institute of Chartered Accountants of India was established on
a. 1 st April,1956
b. 1 stApril, 1949
c. 1 st July,1956
d. 1 st July,1949
Q. Joint audit implies
a. Audit of two concerns together
b. Audit of joint stock companies
c. Audit of joint sector companies
d. Audit of two firms of C.A.
Q. The term auditing was associated with
a. Hearing of accounts
b. Hearing of system
c. Hearing of report
d. None of the above
Q. The arrangement of duties of staff in such a manner, that the work of one person is automatically checked by another during the course of carrying out, recording and processing a transaction.
a. Internal check
b. Internal audit
c. Vouching
d. Internal control
Q. The object of internal audit is
a. To detect frauds and errors
b. To prevent frauds and errors
c. Both (a) and (b)
d. Neither (a) nor (b)
Q. The process of inspecting a document that supports a recorded transaction in order to verify the authority and authenticity of such a transaction
a. Auditing
b. Audit planning
c. Vouching
d. Internal check
Q. Which of the following is not the procedure for vouching of cash sales:
a. Examine cash book
b. Examine cash memos
c. Examine the counterfoil of pay in slops
d. Examine balance sheet
Q. Who is responsible for the verification of assets?
a. Auditor
b. Management
c. Director
d. None of the above