Top 50+ Solved Introduction Principles of Auditing and Audit Process MCQ Questions Answer
Q. Sec.143 of Companies Act 20913 deals with _____
a. Powers and rights of an auditor
b. Removal of an auditor
c. Appointment of an auditor
d. Remuneration of an auditor
Q. Internal auditor is appointed by______
a. Management
b. Shareholders
c. Government
d. Statutory body
Q. ……………….is the medium through which an auditor expresses his opinion on thestate of affairs of the client’s business.
a. Audit report
b. Audit certificate
c. Audit programme
d. Audit planning
Q. ………………… is the specific guidelines and directions for efficient and effectivecompletion of the audit work on timely and daily basis, so as to minimise audit risk.
a. Audit planning
b. Audit report
c. Audit programme
d. Audit certificate
Q. ……………….. is a method of organising the accounting system of a business concern or a factory by which the duties of various clerks are arranged in such a way that the work of one person is automatically checked by another.
a. Internal control
b. Internal check
c. Internal audit
d. All of the above
Q. Internal check is a part of
a. Internal audit
b. Internal accounting
c. External audit
d. Internal control
Q. Civil liability of an auditor implies liability for
a. Misappropriation of cash
b. Misappropriation of goods
c. Fraud
d. Misfeasance
Q. If an auditor is not appointed at annual general meeting, he is appointed by the
a. The Central Government
b. Board of Directors
c. Shareholders
d. Company Law board
Q. The audit that is made compulsory under statute is called ________
a. Statutory audit
b. Partial audit
c. Complete audit
d. Continuous audit
Q. Audit means _______.
a. Recording business transactions
b. Preparing final accounts
c. Examination of books, accounts or vouchers
d. Decision making
Q. When a transaction has not been recorded in the books of account either wholly orpartially such errors are called _______.
a. Error of commission
b. Error of omission
c. Compensating error
d. None of the above
Q. The liabilities of an auditor can be ________.
a. Civil
b. Criminal
c. Civil & Criminal
d. Financial
Q. Duties of an auditor is _______.
a. Statutory duties imposed by the Companies Act
b. Duties imposed by legal or court decisions
c. Duties arising out of professional etiquette
d. All of the above
Q. Internal auditor of a company must be _______.
a. Cost accountant
b. Chartered accountant
c. ICWA
d. Need not possess any professional qualification
Q. Sec.139 (7) provides that in the case of a Government Company or any other company owned or controlled by the Central Government, or by any State Government, the first auditor shall be appointed by _________
a. Comptroller and Auditor-General of India
b. Central Government
c. State Government
d. None of the above