Auditing MCQ Questions and Solutions with Explanations

91

"Disclaimer of Opinion" is issued, when the Auditor is-

A) unable to frame an opinion B) in disagreement with the records kept by the management C) not in an agreement with the stand taken by the management in respect of a material issue D) None of these

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Answer & Solution

Answer: Option B

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92

For all audits of financial statements made in accordance with AAS14, the use of analytical procedures is at the discretion of the auditor in which stage?

A) Substantive testing B) Planning stage C) Overall review stage D) All of the above

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Answer & Solution

Answer: Option A

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93

Internal auditor is appointed by:

A) Shareholders B) Statutory auditor C) Institute of Internal Auditors of India D) Board of Directors

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Answer & Solution

Answer: Option D

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94

The performance of tests of control is documented in:

A) Audit programme B) Flow charts C) Working papers D) Any of the above

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Answer & Solution

Answer: Option C

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95

An auditor is like a:

A) Blood haunt B) Watch dog C) May both according to situation D) None of these

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Answer & Solution

Answer: Option B

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96

Which among the following is not associated with an advantage of audit?

A) Correct settlement of claim from the insurance company B) Borrowings from the banks made easy C) Income tax authority generally accepts the audited accounts to be correct D) It facilitates the settlement of the accounts of a deceased partner E) To engage the accountants for the whole of the year to prepare segment wise accounting records for verification

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Answer & Solution

Answer: Option E

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97

Which of the following is not the duty of a company auditor:

A) To make a report to the members of the company on the accounts examined by him B) To enquire whether loans and advances made by the company on the basis of security have been properly secured C) Where it is stated in the books of the company that shares have been allotted for cash, to enquire whether cash has actually been received in respect of such allotment D) To physically verify the value of stock in hand at the close of the year

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Answer & Solution

Answer: Option D

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98

Who can check the minute book?

A) Shareholder - without any fee B) Debentureholder - on payment of fee C) any person - on payment of fee D) None of the above

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Answer & Solution

Answer: Option A

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99

The retiring auditor does not have a right to

A) make written representations B) get his representations circulated C) be heard at the meeting D) speak as a member of the company

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Answer & Solution

Answer: Option D

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100

The work of continuous auditor is

A) loose B) medium C) Sharp D) Similar

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Answer & Solution

Answer: Option D

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Auditing MCQ Questions and Solutions with Explanations | Commerce