Top 150+ Solved Practical Auditing MCQ Questions Answer
Q. Test checking means
a. Checking of all transactions
b. Checking of half of the transactions
c. Checking of selected items
d. none
Q. Audit working papers are --------------------------
a. Important information about audit
b. Appointment letters regarding audit
c. Letter of notice
d. none
Q. Current audit file consists of
a. Matters of future importance
b. Matters relations to post years
c. Matters relating to the year of audit
d. none
Q. ------------------- begins where accounting ends
a. Bookkeeping
b. Auditing
c. Internal check
d. none
Q. ---------------- audit is compulsory for joint stock companies
a. Statutory
b. Final
c. Continuous
d. none
Q. Treating revenue expenditure as capital expenditure is an example of error of -------------------
a. Principle
b. Compensating
c. Clerical
d. none
Q. Financial statements are prepared by
a. The accountant
b. The auditor
c. Managing director
d. none
Q. Preliminary expanses not written off are treated as
a. Fixed assets
b. Intangible assets
c. Fictitious assets
d. none
Q. Verification of assets involves a critical examination of
a. Ownership
b. Existence
c. All of these
d. none
Q. Finished goods are valued for a balance sheet purpose
a. At cost price
b. At market price
c. At lower of cost or market price
d. none
Q. ---------------- includes financial and non-financial control
a. Internal check
b. Internal control
c. Internal audit
d. none
Q. ---------------- is concerned with the allocation of work among employees
a. Internal control
b. Internal check
c. Internal audit
d. none
Q. The duties of internal auditor is prescribed by
a. Companies act
b. Company law board
c. Management
d. none
Q. Internal audit is considered as a service to -------------------
a. Share holders
b. Board of directories
c. Management
d. none
Q. Pre-arranging and coordinating the audit work is called ------------------
a. Audit planning
b. Vouching
c. Verification
d. none