Top 250+ Solved Auditing MCQ Questions Answer
Q. Goods purchased but not recorded in the purchase register is ________________
a. an error of omission
b. to reduce profits
c. an error of commission
d. affect on agreement of trial balance
Q. Working papers are the property of the ________________
a. client and auditor
b. auditor
c. client
d. equity shareholders
Q. Which of the following documents is not relevant for vouching of sales ________________
a. daily cash sales summary
b. credit memos
c. delivery challans
d. sales department attendance record
Q. The main object of an Audit is ________________
a. to ensure that final accounts are prepared
b. expression of an opinion on true and fair view of accounts
c. to ensure the future viability of the enterprise
d. detection and prevention of frauds and errors
Q. An Audit Programme must be prepared ________________
a. before commencement of an audit
b. after completion of an audit
c. after submission of an audit report
d. during the conduct of an audit
Q. Analytical Review is ________________
a. an audit technique
b. audit in depth
c. a compliance procedure
d. reporting requirement
Q. Audit in Depth means ________________
a. none of the above
b. detailed examination of all transactions
c. investigation of all transactions
d. detailed examination of selected transactions
Q. ________________ incorporates both Accounting and Administrative Controls.
a. internal control
b. internal check
c. statutory audit
d. internal audit
Q. Debtors are valued at ________________
a. realizable value
b. as per articles of association
c. book value
d. decided by the customer
Q. The main objective of Window Dressing is ________________
a. increase liability
b. to mislead investors
c. to reduce tax liability
d. to understate profits
Q. ________________ document is not relevant for vouching cash purchases
a. purchase order
b. goods inward register
c. purchase invoice
d. attendance record of cashier
Q. To select a sample for Audit, the auditor should consider ________________
a. all the above
b. the size of the sample
c. the volume of transactions
d. adequacy of internal control system
Q. Secret reserves are shown on ________________
a. assets side of balance sheet
b. none of the above
c. liabilities side of balance sheet
d. credit side of trading account
Q. Stock of goods on consignment should be valued at ________________
a. none of the above
b. invoice price
c. cost of realizable value whichever is lower
d. cost price