Top 150+ Solved Practical Auditing MCQ Questions Answer
Q. A company auditor should see that the dividend should be paid
a. After charging depreciation
b. Without charging depreciation
c. Out of capital
d. None of the above
Q. In his report, the auditor gives his
a. Judgment
b. Opinion
c. Guarantee to correctness of accounts
d. True state of affairs
Q. Civil liability of an auditor implies liability for
a. Misappropriation of cash
b. Misappropriation of goods
c. Fraud
d. Misfeasance
Q. An auditor can be held liable under companies Act 1949 for
a. Negligence
b. Criminal offence
c. Professional misconduct
d. Breach of contract
Q. Investigation of books of accounts and records is :
a. Not legally compulsory
b. Compulsory
c. Compulsory as per companies act
d. Compulsory as Income Tax Act
Q. Investigation is carries on behalf of
a. Manager
b. Employee
c. Client
d. On behalf of owner and third parties
Q. Examination of accounting records undertaken for a special purpose is called
a. Auditing
b. Internal check
c. Investigation
d. Internal control
Q. The prime importance of investigation on behalf of an individual or firm intending topurchase an existing business is to
a. Ascertain value of asset
b. Ascertain the earning capacity of the concern
c. Estimation of value of good will
d. Extend of liabilities
Q. Inflation of closing stock results is :-
a. Inflation of loss
b. Deflation of loss
c. Inflation of profit
d. Deflation of profit
Q. Inflation of profit is possible due to :
a. Overvaluation of closing stock
b. Overstating purchase
c. Overstating opening stock
d. Overstating expenses
Q. Charging excessive provision for depreciation results in
a. Less profit
b. More profit
c. No change in profit
d. No change in loss
Q. The main purpose of management audit is to
a. Review the management operations
b. Check arithmetical accuracy
c. Prevent travel
d. Prevent error
Q. Management audit is
a. Compulsory
b. Not compulsory
c. Compulsory under Income Tax Act
d. Compulsory under Indian Contract Act.
Q. Special resolution means -------------------
a. 1/3 majority
b. 2/3 majority
c. ½ majority
d. none
Q. Ordinary resolution means -----------------------
a. 1/3 majority
b. 2/3 majority
c. More than 1/2
d. none