Top 250+ Solved Auditing MCQ Questions Answer
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
Q. Voucher relates to _________.
a. Cash receipt & payments, credit transactions
b. Cash payment only
c. Credit transactions only
d. Cash receipt only
Q. Internal check is meant for ___________.
a. Prevention of frauds
b. Detection of frauds
c. Helping audit is depth
d. Detection of errors
Q. Purchase of machinery is a ____________.
a. revenue receipt
b. capital receipt
c. capital expenditure
d. revenue expenditure
Q. Sale of land is a __________.
a. revenue receipt
b. capital receipt
c. capital expenditure
d. revenue expenditure
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
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
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
Q. Recording a transaction twice in the books of original entry is an error of __________.
a. principle
b. commission
c. duplication
d. omission
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
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
Q. /. Special audit is necessary for _________.
a. inefficient concern
b. processing concern
c. trading concern
d. manufacturing 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