Auditing MCQ Questions and Solutions with Explanations

81

Which of the following is not included under the powers and the rights of an auditor in the companies act, 1956?

A) Right to see the books of accounts B) Right to call the general meeting C) Right to attend the general meeting D) Right to receive information of general meeting

Discuss

Answer & Solution

Answer: Option B

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82

A small sole business generally does not require auditing because

A) Its area is limited B) Its owner has complete control over it C) It is not mandatory by law D) All of these

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Answer & Solution

Answer: Option C

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83

An audit which is compulsory by the law is . . . . . . . .

A) Government Audit B) Internal Audit C) Cost Audit D) Statutory Audit

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Answer & Solution

Answer: Option D

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84

If a casual vacancy in the office of auditor arises by his resignation it should only be filled by the company in a . . . . . . . .

A) Board meeting B) Extraordinary general meeting C) General meeting D) Annual general meeting

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Answer & Solution

Answer: Option C

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85

"Auditor is a watch-dog and not a blood-bound" was a remark made in the case of:

A) The London Oil Storage Co. Ltd, 1904 B) Kingston Cotton Mills Ltd, 1896 C) London and General Bank, 1895 D) Delightful Cigarette Co. Ltd, 1943

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Answer & Solution

Answer: Option B

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86

Tests of control are not concerned with:

A) Existence of controls B) Effectiveness of controls C) Continuity of controls D) Designing of controls

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Answer & Solution

Answer: Option D

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87

What is the civil liability of a company auditor?

A) Liability for negligence B) For the false statement in the prospectus C) For willfully signing a false certificate D) For both A and B above

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Answer & Solution

Answer: Option A

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88

Companies (Auditor's Report) order is applicable from:

A) 1^st January 1976 B) 1^st July 2003 C) 1^st July 2002 D) 1^st July 1991

Discuss

Answer & Solution

Answer: Option A

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89

Which of the following statement is true regarding an auditor's working papers?

A) They document the level of independence maintained by the auditor B) They should be considered as the principle support for the auditor's report C) They should not contain details regarding weaknesses in the internal control system D) They help the auditor to monitor the effectiveness of the audit firm's quality control

Discuss

Answer & Solution

Answer: Option B

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

90

A company auditor addresses his audit report to:

A) Board of directors B) Members C) Managing Director D) Company Secretary

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