Top 150+ Solved Auditing Corporate Governance MCQ Questions Answer
Q. Which of the following object is not included while verifying the liabilities by the auditor?
a. Existence
b. Obligation
c. Completeness
d. All of the above
Q. The work of one clerk is automatically check by another clerk is called
a. Internal control.
b. Internal check.
c. Internal audit.
d. None of the above.
Q. Which of the following is not a kind of audit?
a. Statutory and private audit.
b. Government and continuous audit.
c. Continuous, final, Interim, Cash, Cost and Management audit.
d. None of these.
Q. The audit that is made compulsory under statute is called _________.
a. Statutory audit.
b. Partial audit.
c. Complete audit.
d. Continuous audit.
Q. This kind of audit is conducted generally between two annual audit ______.
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 the above.
Q. To verify cash transactions, it is necessary
a. System of internal control
b. Check all transaction
c. Documentary evidence for every transaction
d. All of the above.
Q. In case of sales return, the auditor should check.
a. Credit notes and delivery challans.
b. Whether cash has been repaid to the client
c. Purchase invoices and goods received notes.
d. Credit notes and goods received notes.
Q. Which of the following is an importance of vouching?
a. Ensures all items are disclosed in the financial statement as per Schedule VI provisions
b. It helps to verify whether entries are passed as per acceptable accounting principles.
c. Helps in detection and prevention of errors & frauds
d. All the above
Q. The elements of auditing includes –
a. Systematic and independent examination
b. Stated purpose
c. Collects and evaluates the evidence
d. All of the above
Q. Interim Audit refers to an audit conducted
a. In between two different accounting years
b. In between two annual audits
c. In between one statutory audit, one management audit and one internal audit
d. None of the above
Q. Errors occurring when generally accepted accounting principles are not observed while recording any transaction in the books of accounts
a. Clerical errors
b. Compensating errors
c. Errors of principle
d. Errors of duplication
Q. Before the work of audit is commenced, the auditor prepares a written procedure needed to implement the audit work
a. Audit plan
b. Audit note
c. Audit programme
d. Audit risk
Q. The work of one clerk automatically checked by another clerk is called
a. Internal control
b. Internal check
c. Internal audit
d. None of the above
Q. Section 138 of the Companies Act, 2013 made internal audit compulsory for
a. Every listed company
b. Every unlisted public company having paid-up share capital of 50 crores or more during the preceding financial year
c. Both (a) & (b)
d. Neither (a) nor (b)