Top 150+ Solved Practical Auditing MCQ Questions Answer
Q. Investment should be vouched with the help of
a. Commission book
b. Brokers book
c. Sales deeds
d. Minute book
Q. Receipt from debtors should be vouched with the help of
a. Counterfoil Receipts cash book
b. Suppliers statement
c. Sales Deeds
d. General Ledger
Q. Receipt from sale of investment should be vouched with the help of
a. Brokers Budget Notes
b. Brokers Sold Notes
c. Minute Book
d. Inventory of investment
Q. Purchases returns should be vouched with the help of
a. Bought Notes
b. Credit Notes
c. Goods inward Book
d. Cash Book
Q. Verification refers to
a. Examination of journal and ledger
b. Examination of vouchers related to assets
c. Examining the physical existence and valuation of assets
d. Calculation of value of assets
Q. Object of verification of assets
a. Physical verification of assets
b. Checking value of assets
c. Examining the authority of their acquisition
d. All of the above
Q. Which of the following statements is correct?
a. Valuation is a part of verification
b. Verification is a part of valuation
c. Valuation has nothing to do with verification
d. Auditor is a valuer
Q. Stock should be valued at
a. Cost
b. Market price
c. Cost price or market price whichever is lower
d. Cost less depreciation
Q. Valuation of Fixed Assets is based on the concept
a. Going concern
b. Conservation
c. Money measurement
d. Dual aspect
Q. Valuation means
a. Calculating value of assets
b. Checking the value of assets
c. Checking the physical existence of assets
d. Examining the authenticity of assets
Q. “ Auditor is not valuer” was stated in
a. Kingston Cotton Mills case
b. London & General Bank case
c. Lee . V . Neuchatel Co. Ltd case
d. London oil Storage Co. case
Q. Fixed assets are valued at
a. Cost
b. Market price
c. Cost price or market price whichever is less
d. Cost less depreciation
Q. Floating assets are valued at
a. Cost
b. Market price
c. Cost price or market price whichever is less
d. Cost less depreciation
Q. The scope of work of internal audit is decided by the
a. Share holders
b. Management
c. To improve financial control
d. All of the above
Q. Outstanding expenses should be verified with the help of
a. Cash book
b. Balance book
c. Journal proper
d. None of the above