Top 150+ Solved Practical Auditing MCQ Questions Answer
Q. Internal check is carried on by
a. Special staff
b. Internal auditor
c. Accountant
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. Internal check is carried on by
a. Staff specially appointed for the purpose
b. Internal auditor
c. The members of the staff among themselves
d. Supervisor of the staff
Q. Internal check is essential for
a. Petty traders
b. Cash transactions in a large concern
c. A concern using automatic equipments
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. Window dressing implies
a. Curtailment of expenses
b. Checking wastages
c. Under- valuation of assets
d. Over- valuation of assets
Q. Falsification of accounts is undertaken by
a. Auditors
b. Clerks
c. Accountants
d. Responsible officials
Q. Errors of omission are
a. Technical errors
b. Error of principle
c. Compensating errors
d. None of the above
Q. Test checking refers to
a. Testing of accounting records
b. Testing of honesty of employees
c. Intensive checking of a selected number of transactions
d. Checking of all transactions recorded
Q. Test checking should not be applied to
a. Sales book
b. Purchase book
c. Bank reconciliation statement
d. Bills book
Q. Vouching implies
a. Inspection of receipts
b. Examination of vouchers to check authenticity of records
c. Surprise checking of accounting records
d. Examining the various assets
Q. Payment for goods purchased should be vouched with the help of
a. Creditors statement
b. Correspondence with suppliers
c. Cash memos
d. Ledger accounts
Q. Payment for wages should be vouched with the help of
a. Piece work statement
b. Wage sheets
c. Minute book
d. Bank pass book
Q. Payment for building purchased should be vouched with the help of
a. Title deed
b. Correspondence with Brokers
c. Building account
d. Cash book