Top 50+ Solved Introduction Principles of Auditing and Audit Process MCQ Questions Answer
Q. Objectives of internal audit includes _________.
a. Proper control
b. Perfect accounting system
c. Asset protection
d. All of the above
Q. Internal control includes ________.
a. Internal audit
b. Internal check
c. Both internal audit and internal check
d. Internal check and external audit
Q. …………. is the examination of all documentary evidence which are available tosupport the authenticity of transactions entered in the client’s records.
a. Accounting
b. Vouching
c. Internal check
d. None of the above
Q. Audit done by the employees of the business undertaking is called ______.
a. Final audit
b. Internal audit
c. Company audit
d. Statutory audit
Q. Which of the following is not a kind of audit?
a. Statutory and private audit
b. Government and continuous audit
c. Final, Interim, management audit
d. None of the above
Q. Effective internal check system reduces
a. The liability of auditor
b. Work of auditor
c. Responsibilities of an auditor
d. None of the above
Q. Misappropriation of goods may be checked by
a. Proper supervision over stock
b. Checking of employees
c. Punishment of employees
d. None of the above
Q. Internal check is suitable for _______.
a. Larger concerns
b. Smaller concerns
c. Petty-shop keepers
d. None of the above
Q. Final audit implies
a. Finally checking of accounts to reveal frauds
b. Audit for submitting report immediately at the end of the year
c. Audit of banking companies
d. Audit of accounts at the end of the year
Q. Remuneration of an internal auditor is fixed by ______.
a. Management
b. Shareholders
c. Government
d. Statutory body
Q. The objective of the audit planning is ________
a. To give appropriate attention to all important areas of audit
b. To identify potential problems
c. To coordinate work with other auditors and experts
d. All of the above
Q. Audit papers are the property of ______.
a. Client
b. Auditor
c. Both the client and the auditor
d. The audit committee
Q. Sole proprietary concerns are ______ to get their financial statements audited byindependent financial auditors.
a. Legally required
b. Not legally required
c. Ethically required
d. Not ethically required
Q. The performance audit may be initiated by the organisation or by ____.
a. Government
b. Employees & Management
c. Shareholders
d. External interested parties
Q. Balance sheet audit is also known as …………
a. Continues audit
b. Annual audit
c. Internal audit
d. Financial audit