Top 150+ Solved Auditing Corporate Governance MCQ Questions Answer
Q. “The process of inspecting documents that supports a recorded transaction in order to verify the authority and authenticity of such a transaction” is
a. Vouching
b. Verification
c. Internal Check
d. Internal Control
Q. The process of substantiation of assets and liabilities recorded in the books of accounts by physical inspection and examination of legal and official documents to form and expert opinion
a. Vouching
b. Voucher
c. Verification
d. Audit notebook
Q. A systematic and independent examination of data ,statements,records,operations,and performance(financial or otherwise) for a stated purpose. In any auditing situation,the auditor perceives and recognizes the propositions before him for examination,collects evidence,evaluates the same and on the basis formulates his judgement which is,communicated through his audit report.” This definition is given by
a. Joseph Lancaster
b. Taylor and Perry
c. ICAI
d. ICAE.
Q. An error occurs due to negligence in recording the details of transaction, such errors are of clerical nature and are of wrong entries,wrong positioning,additions,transfer,etc.. is called
a. Errors of Commission
b. Errors of Omission
c. Errors of principle
d. Compensating Errors.
Q. The primary objective of auditing is to
a. To examine the reliability and validity of financial statements.
b. To detect errors
c. To detect frauds
d. None of the above.
Q. Audits should be based on the six principles,according to
a. ISO 19001:2011
b. ISO 19011:2011
c. ISO 19111:2011
d. ISO 19000:2011
Q. Under technique of Auditing,Documents which have their origin in the hands of the third party and held by them is
a. Reliable
b. More reliable
c. Reliable only if the internal control is effective.
d. Most reliable evidence.
Q. Audit of partnership firm is under
a. Audit of other organizations covered by any law
b. Audit required under law
c. Audit of other organizations not covered by any law
d. None of the above.
Q. The external auditor are usually appointed by
a. The owners only
b. The government
c. The management and the government
d. The owners and in some cases by the government.
Q. The first auditor of company will hold office
a. For a period of one year
b. Till holding of statutory meeting
c. Till the conclusion of first annual general meeting
d. Till a new audtor is appointed
Q. Remuneration of a company auditor is fixed by the
a. Shareholders
b. Board of Directors
c. Central Government
d. Appointing authority
Q. A company auditor in general has to submit his report to
a. Shareholders
b. Central Government
c. C&A-G
d. Board of Directors
Q. Internal auditor has to submit report to
a. Shareholders
b. Government
c. Company Law Board
d. None of the above
Q. An auditor is liable held criminally liable for
a. Loss to his client
b. Neglect of his duty
c. Offences against statutory provision
d. None of the above