Top 250+ Solved Auditing MCQ Questions Answer
Q. The principal auditor, as per clarification issued by the ICAI, does not have any rightto
a. Inspect working papers of the branch auditor
b. Visit branches
c. Seek information necessary for audit purposes
d. Incorporate the branch audit report in his audit report
Q. Under which of the following section auditor has a duty to enquire into six specifiedmatters and report by exception?
a. Section 227(4A)
b. Section 227 (IA)
c. Section 227 (2)
d. Section 227(3)
Q. The auditor has to enquire, under section 227 (IA) into different aspects, related toshares allotted for cash for the purpose of auditor include
a. Shares against whose allotment cash has actually been received
b. Shares allotted for consideration other than cash
c. Shares allotted against a debt payable
d. All of them
Q. Right to visit branches has been given to the auditor under which section?
a. Section 222(3)
b. Section 228(2)
c. Section 228(4)
d. Section 228(3)
Q. Which of the following statements with regard to rules regarding exemptionfrom branch audit is not true?
a. A branch office of a company can be granted exemption on the basis of quantum of activity criterion
b. If a satisfactory arrangement of scrutiny check of the books of account of a branch office of a manufacturing company has been made, it can be exempted from branch audit
c. Cost consideration should be considered as an important factor/ground for exemption from branch audit
d. The auditor should state in his audit report that branch office is exempted by virtue of quantum of activity or any other basis
Q. The branch auditor is appointed by –
a. Shareholders in an annual general meeting
b. Shareholders in general meeting
c. Board of directors in board meeting
d. Any of the above
Q. Special audit is conducted at the order of the Central Government. Whichsection gives such powers?
a. Section 233(A)
b. Section 233A
c. Section 242(A)
d. Section 242A
Q. Who among the following can be appointed as special auditor by the CentralGovernment?
a. The statutory auditor
b. chartered accountant in practice
c. Any chartered accounted who is not in practice
d. Both (a) and (b)
Q. The scope of the audit including reference to the pronouncements of the ICAI, which the auditor adheres to, generally is communicated to the client in the ____ i) auditor’s report ii) engagement letter iii) representation letter
a. i) only
b. Both (i) and (ii)
c. Both (i) and (iii)
d. All the above
Q. If any director is disqualified from being appointed under section 274(1) (g), the auditor should mention this fact in his audit report. For this purpose, how does hedetermine their eligibility :
a. He obtains a representation from each director
b. He obtains a management representation
c. He enquiries from Registrar of Companies
d. Any one of the above
Q. As per the ‘Statement on Qualification in Auditor’s Report’s issued by theICAI, the auditor, Under section 227(3) has to gave a statement of fact on_
a. Proper books of account
b. Accounting standards
c. Cess payable under section 441A
d. None of the above
Q. The date on auditor’s report should not be__
a. The data of AGM
b. Later than the date on which the accounts are approved in board’s meeting
c. Earlier than the date on which the accounts are approved by the management
d. Both (a) and (b)
Q. Section 227(2) of the Companies Act, requires the auditor to give his report tothe members of the company on certain matters. Which of the following is not included in the above?
a. Accounts examined by him
b. Every balance sheet and profit and loss account laid before a general meeting during his tenure
c. Every document that is a part of or ‘annexed to’ the balance sheet
d. Every document which is attached to the profit and loss account
Q. Which of the following report not result in qualification of the auditor’s opinion due to a scope limitation?
a. Restrictions the client imposed
b. Reliance on the report of other auditor
c. Inability to obtain sufficient appropriate evidential matter
d. Inadequacy of accounting records
Q. The inventory consists of about one per cent of all assets. The client hasimposed restriction on auditor to prohibit observation of stock take. The auditor cannot apply alternate audit procedures.
a. Unqualified opinion
b. Qualified opinion
c. Disclaimer of opinion
d. Adverse opinion