Top 50+ Solved Introduction Principles of Auditing and Audit Process MCQ Questions Answer
Q. …. lays out the strategies to be followed to conduct an audit.
a. An action plan
b. An audit plan
c. An audit programme
d. All of the above
Q. Auditor should determine the ______ and the timing of the audit report
a. Nature
b. Actual
c. Nature & actual
d. Form
Q. ……………..followed by the enterprise affect the audit plan.
a. Accounting policies
b. Audit policies
c. Accounting and Audit policies
d. Management policies
Q. While framing an audit plan auditor should ascertain his _____ cast by variouslegislations on him.
a. Limitations
b. Duties and obligations
c. Rights and powers
d. Term of appointment & responsibilities
Q. An audit programme is a set of _______ which are to be followed for properexecution of audit.
a. Rules
b. Policies
c. Instructions
d. Actions
Q. Audit programme provides instructions to the audit staff and reduces scope for
a. Understanding
b. Misunderstanding
c. Negligence
d. Liabilities
Q. Audit programme helps in fixing the ______for the work done among the audit staffas work done may be traced back to the individual staff members.
a. Remuneration
b. Liabilities
c. Negligence
d. Responsibility
Q. On completion of an audit _______serves the purpose of audit record which may beuseful for future reference.
a. Audit programme
b. Audit working papers
c. Audit plan
d. Audit notes
Q. Audit programme is prepared by _____
a. The auditor
b. The client
c. The audit assistant
d. The auditor and his audit assistants
Q. The auditor has to obtain _______ to substantiate his opinion on the financialstatements.
a. Internal evidence
b. External evidence
c. Internal and external evidence
d. Sufficient and appropriate evidence
Q. The quality of information generated by the audited organization is directly related tothe strength of the organization’s ______
a. Internal check
b. Internal control
c. Internal audit
d. All of the above
Q. _______ are the documents prepared or obtained by the auditors in connection withthe audit.
a. Audit notes
b. Audit working papers
c. Audit report
d. All of the above
Q. Working papers helps in proper _______ of audit.
a. Planning
b. Performance
c. Planning and performance
d. Execution
Q. The Auditors Working Papers are divided into two parts
a. Permanent audit file and current audit file
b. Permanent audit file and temporary audit file
c. temporary audit file and current audit file
d. current audit file and transitory audit file
Q. A statutory auditor-------- also as internal auditor of the company
a. Can act
b. Cannot act
c. Though can act but ethically should not act
d. None of the above