Top 250+ Solved Auditing MCQ Questions Answer
Q. ________________ is not an error of Commission
a. mathematical error
b. compensating error
c. posting error
d. none of the above
Q. Telephone charges should be examine on the basis of ________________
a. cash memo
b. telephone bill
c. all the above
d. agreement with telephone department
Q. The Auditor examines Bill of Lading in order to vouch ________________
a. sales within the state
b. all the above
c. sales outside the state
d. sales outside the country
Q. ________________ Asset, which is not subject to physical verification
a. stock
b. cash
c. furniture
d. debtors
Q. Goods sold but not recorded in Sales Register is ________________
a. compensating error
b. an error of commission
c. an error of omission
d. none of the above
Q. Audit plan should be best on knowledge of the ________________
a. client\s reputation
b. client\s family
c. client\s share capital
d. client\s business
Q. Confirmation is ________________
a. a compliance procedure
b. an audit technique
c. a principle of audit
d. none of the above
Q. ________________ should be checked by the Auditor in verification of Machinery
a. all the above
b. charge/line
c. the possession
d. ownership
Q. Closing stock with the consignee is to be shown as the Asset of ________________
a. consignee
b. customer
c. all the above
d. consignor
Q. If a material financial fraud is detected, Auditor should ________________
a. report it to police
b. report it to the institute of ca of india
c. ignore it
d. report it to the owners or shareholders
Q. An auditor is like a
a. Blood haunt
b. Watch dog
c. May both according to situation
d. None of these
Q. The term ‘Audit’ is derived from a Latin word “audire” which means;
a. To inspect
b. To examine
c. To hear
d. To investigate
Q. Process of verifying the documentary evidences of transactions are known as:
a. Auditing
b. Testing
c. Vouching
d. Verification
Q. Auditing is compulsory for
a. Small scale business
b. Partnership firms
c. Joint stock Companies
d. Proprietary Concerns
Q. The main object of an audit is ___
a. Expression of expert opinion
b. Detection and Prevention of fraud and error
c. Both (a) and (b)
d. Depends on the type of audit.