Auditing MCQ Questions and Solutions with Explanations

21

Which of the following statements is not true with regard to teeming and lading?

A) It results in the deliberate misappropriation of cash receipts B) It is associated with cash receipts C) If same individual maintains cash receipts and cash payments teeming and lading is likely to exist D) To conceal the shortage, the defraud, usually, tries to keep bank and book amounts in daily agreement so that a bank reconciliation will not detect the irregularity

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

22

Analytical procedures are least likely to be use in the audit of:

A) Cash balance B) Investments C) Bills receivables D) Debtors

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

23

Verification of voucher is called

A) Routine check B) Vouching C) Auditing D) None of these

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

24

Which of the following is called back-bone of auditing?

A) Routine checking B) Internal check C) Accounting D) Vouching

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

25

Which of the following is not a revenue expense?

A) Cost of raising a loan B) Cost of accessories of motor vehicles spent at the time of purchase C) Expenses incurred for laying of sewers on land purchased D) Insurance premium paid at the time of registration of the ship

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

26

Propriety Audit is normally undertaken in case of:

A) Joint Stock Company B) Government Company C) Statutory Corporation D) Government Departments

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

27

Auditing is compulsory:

A) in joint stock companies B) in sole trading C) in partnership D) in all the above

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

28

Under companies Act. 1956, cost audit has been made compulsory for certain specified companies, under

A) Section 209 B) Section 233 C) Section 277 D) None of the above

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

29

Which of the following types of audit is not statutorily required for companies in India.

A) Internal Audit B) Cost Audit C) Audit of final accounts D) All of the above

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

30

A sale of Rs. 25,000 to A was entered as a sale to B.
This is an example of:

A) Error of omission B) Error of commission C) Compensating error D) Error of principle

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Auditing MCQ Questions and Solutions with Explanations | Commerce