Top 250+ Solved Auditing MCQ Questions Answer

From 211 to 223 of 223

Q. A Voucher is a _______.

a. Document is support of an entry made in books of accounts

b. Invoice received from suppliers

c. Receipt issued to a customer for cash

d. Dispatch Receipt

  • a. Document is support of an entry made in books of accounts

Q. Voucher relates to _________.

a. Cash receipt & payments, credit transactions

b. Cash payment only

c. Credit transactions only

d. Cash receipt only

  • a. Cash receipt & payments, credit transactions

Q. Internal check is meant for ___________.

a. Prevention of frauds

b. Detection of frauds

c. Helping audit is depth

d. Detection of errors

  • a. Prevention of frauds

Q. Purchase of machinery is a ____________.

a. revenue receipt

b. capital receipt

c. capital expenditure

d. revenue expenditure

  • c. capital expenditure

Q. Sale of land is a __________.

a. revenue receipt

b. capital receipt

c. capital expenditure

d. revenue expenditure

  • b. capital receipt

Q. When a transaction has not been recorded in the books of account either wholly orpartially such errors are called as _________.

a. errors of commission

b. errors of omission

c. compensating error

d. error of principle

  • b. errors of omission

Q. Verification of the value of assets, liabilities, the balance of reserves, provision and theamount of profit earned or loss suffered a firm is called _________.

a. continuous audit

b. balance sheet audit.

c. interim audit

d. partial audit

  • b. balance sheet audit.

Q. A sale of Rs. 50000 to Mr. A was entered as a sale to Mr. B. This is an example of what?

a. Error of omission

b. Error of commission

c. Compensating error

d. Error of principle

  • b. Error of commission

Q. Recording a transaction twice in the books of original entry is an error of __________.

a. principle

b. commission

c. duplication

d. omission

  • c. duplication

Q. Errors and frauds already committed can be discovered under the system of ________.

a. internal audit, internal check, internal control

b. external check

c. statutory audit

d. interim audit

  • a. internal audit, internal check, internal control

Q. Treating revenue expenditure as capital expenditure is a case of _________.

a. fraud

b. misappropriation of cash

c. misappropriation of goods

d. manipulation of accounts

  • d. manipulation of accounts

Q. /. Special audit is necessary for _________.

a. inefficient concern

b. processing concern

c. trading concern

d. manufacturing concern

  • a. inefficient concern

Q. The first auditors appointed by head office ____________.

a. for a period of one year

b. for a period of two years

c. for a period of three years

d. till the conclusion of the first annual general meeting

  • d. till the conclusion of the first annual general meeting
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