Top 150+ Solved Practical Auditing MCQ Questions Answer
Q. Auditing is compulsory for
a. Small scale business enterprises
b. All partnership firms
c. All joint stock companies
d. All proprietary concerns
Q. Propriety audit refers to
a. Verification of accounts
b. Examination accounts of propriety concerns
c. Enquiry against justification and necessity of expresses
d. Audit of Govt. companies
Q. Propriety is normally undertaken in case of
a. Joint stock company
b. Government company
c. Statutory corporation
d. Govt. departments
Q. Interim audit refers to
a. Examination of accounts continuously
b. Examination of accounts intermittently
c. Audit work to find out and check interim profits of a company
d. Carrying on audit for bonus purposes at the end of the year
Q. A continuous audit is specially needed for
a. Any trading concern
b. Smaller concerns
c. Banking companies
d. Any manufacturing companies
Q. Joint audit implies
a. Audit of two concerns together
b. Audit of joint stock companies
c. Audit of joint sector companies
d. Audit by two firms of C.A
Q. Management audit means
a. Audit undertaken on behalf of the management
b. Evaluating performance of various management processes and functions
c. Audit undertaken on behalf of Govt. to punish management
d. Compulsory audit
Q. Systems audit implies
a. Systematic examination of accounts
b. Audit undertaken to improve auditing systems
c. Enquiring accounting and control systems
d. Checking the performance of management
Q. Internal audit means
a. Audit undertaken to ascertain truth and fairness of state of affairs
b. Audit undertaken internally to evaluate management functions
c. Audit undertaken by employees of the organization to check financial irregularities
d. Audit by independent auditor to improve internal affairs
Q. Internal audit is
a. Compulsory for a company with paid-up capital of Rs. 25 lakh and above
b. Voluntary for a company
c. Not necessary for a company
d. Necessary for a company
Q. Internal audit is undertaken
a. By independent auditor
b. Statutorily appointed auditor
c. By a person appointed by the management
d. By Government auditor
Q. The object of internal check is to
a. Control wastage of resources
b. Prevent errors and frauds
c. Verify the cash receipts and payments
d. Facilitate quick decision by the management
Q. Effective internal check system reduces
a. The liability of auditor
b. Work of auditor
c. Both work as well as auditor
d. Responsibilities of an auditor
Q. Internal check is a part of
a. Internal audit
b. Internal accounting
c. External audit
d. Internal control