Auditing MCQ Questions and Solutions with Explanations

51

To be an auditor, a person must be an

A) Employee B) Employer C) Accountant D) Independent person

Discuss

Answer & Solution

Answer: Option D

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

52

The report through which an auditor expresses his opinion on the financial statement is known as

A) Cost report B) Audit report C) Statutory report D) Management report

Discuss

Answer & Solution

Answer: Option B

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

53

Choose the correct statement in reference to accounting standards., choose the correct statement:

A) Accounting standards codify the generally accepted accounting principles B) Accounting standards lay down the norms of accounting policies and practices by way of codes or guidelines C) The main purpose of accounting standards is to provide information to the user on the basis of which the accounts have been prepared D) All of the above

Discuss

Answer & Solution

Answer: Option D

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

54

The auditor does not have to check the following while auditing salaries/wages

A) Calculation of the salary B) Whether the calculation was verified by department heads C) Whether dues like PF, PT, TDS have been deducted and deposited D) Payment has been made to all the employees on first of the month

Discuss

Answer & Solution

Answer: Option D

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

55

The step(s) involved in conducting system audit is/are

A) Audit evidence B) Conduct audit tests C) Concluding the audit D) All of these

Discuss

Answer & Solution

Answer: Option D

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

56

The auditor, in general, is an

A) Employee of the company B) Agent of the company C) Agent of the shareholders D) None of the above

Discuss

Answer & Solution

Answer: Option C

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

57

The term of the auditorship of first auditor would be from the date of appointment till:

A) The conclusion of statutory meeting B) The conclusion of first annual general meeting C) The conclusion of next annual general meeting D) The date of removal

Discuss

Answer & Solution

Answer: Option B

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

58

In which audit, the examination of the effects of air emission, water and soil pollution, landscape etc is done?

A) Management audit B) Energy audit C) Environmental audit D) Safety audit

Discuss

Answer & Solution

Answer: Option C

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

59

The Accounting Standard Board was set up by

A) Institute of Chartered Accountants of India B) Institute of Cost and Works Accountants of India C) Institute of Company Secretaries of India D) Government of India

Discuss

Answer & Solution

Answer: Option A

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

60

The primary objective of an audit is to

A) Verify and value assets as per the Companies Act B) Verify liabilities and report to the registrar of companies C) Verify and report on the state of affairs of the business D) Appoint auditors

Discuss

Answer & Solution

Answer: Option C

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

Auditing MCQ Questions and Solutions with Explanations | Commerce