Top 250+ Solved Auditing MCQ Questions Answer
Q. While observing a client’s annual physical inventory, an auditor conducted testcounts for certain test counts were higher than the recorded quantities in the client’s perpetual records. This situation could be the result of the client’s failure to record –
a. Purchase returns
b. Sales returns
c. Goods with consignor
d. Purchase discounts
Q. Inspection report/receiving report supports entries in
a. Sales book and sales return book
b. Purchase book and sales return book
c. Cash book and purchase book
d. Sales book and purchase return book
Q. ……………….. Starts where …………….. Ends
a. Accounting, auditing
b. Auditing, accounting
c. Vouching, auditing
d. Accounting,vouching
Q. ............ means “proving the truth or confirmation”
a. Vouching
b. Verification
c. Inspection
d. Auditing
Q. Civil liability of an auditor implies liability for
a. misappropriation of cash
b. misappropriation of goods
c. fraud
d. misfeasance
Q. An auditor is held criminally liable for
a. Loss to his client
b. Neglect of his duty
c. Offence against statutory provisions
d. Frauds
Q. An auditor is held liable under C.A Act 1949 for
a. negligence
b. misfeasance
c. Professional misconduct
d. breach of contract.
Q. __________ is a systematic examination of the books and records or a business.
a. Auditing
b. Vouching
c. Verification
d. Checking
Q. An audit which is compulsory by the law is __________.
a. Government Audit
b. Internal Audit
c. Cost Audit
d. Statutory Audit
Q. .Instruction of audit issued by controller and auditor general of India ________.
a. Statutory audit
b. Final Audit.
c. Management audit
d. Government audit
Q. Audit done by the employees of the business undertaking is called _______.
a. Final audit
b. Management Audit
c. Government Audit
d. Internal 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. Management audit otherwise called as _______.
a. Final audit
b. Efficiency Audit
c. Cost Audit
d. Cash audit
Q. Before the work of audit is commenced, the auditor plans out the whole of audit work iscalled _________.
a. Audit Plan
b. Audit Note
c. Audit Programme
d. Audit Control
Q. A number of checks and controls exercised in a business to ensure its efficient workingare known as ________.
a. Internal Check
b. Internal Control
c. Internal Audit
d. Interim Check