Auditing MCQ Questions and Solutions with Explanations

1

Management audit implies

A) Audit undertaken on behalf of the management B) Evaluating the performance of various management processes and functions C) Audit undertaken on behalf of the government to punish the management D) Compulsory audit

Discuss

Answer & Solution

Answer: Option B

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

2

Which of the following is not corroborative evidence?

A) Minutes of meetings B) Confirmations from debtors C) Information gathered by auditor through observation D) Worksheet supporting consolidated financial statements

Discuss

Answer & Solution

Answer: Option D

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

3

Internal audit is helpful in

A) Prevention of errors and frauds B) Detection of errors and frauds C) Auditing items in depth D) None of the above

Discuss

Answer & Solution

Answer: Option B

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

4

While vouching, how will the auditor ensure that all credit sales transactions have been recorded by the entity?

A) Examining cut off points B) Matching entries in the sales book against renumbered sales invoices and goods' outward notes C) Counting the number of invoices and matching the number with entries on sales book D) Both A and B

Discuss

Answer & Solution

Answer: Option D

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

5

The date on auditor's report should not be

A) The data of AGM B) Later than the date on which the accounts are approved in board's meeting C) Earlier than the date on which the accounts are approved by the management D) Both A and B

Discuss

Answer & Solution

Answer: Option C

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

6

Payment for wage should be vouched with the help of:

A) Piece work statement B) Wage sheets C) Minutes book D) Bank pass book

Discuss

Answer & Solution

Answer: Option B

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

7

Checking the valuation of assets is a part of:

A) Routine Checking B) Vouching C) Verification D) Internal check

Discuss

Answer & Solution

Answer: Option C

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

8

In how many days will the auditor write to the Registrar of companies regarding the acceptance of his appointment

A) 7 days B) 10 days C) 20 days D) 30 days

Discuss

Answer & Solution

Answer: Option D

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

9

The internal auditors of a joint-stock company

A) Need not possess the qualification laid down in the Companies Act B) Should be chartered accountants C) Should be chartered accountants or cost accountants D) Should hold some other professional qualifications

Discuss

Answer & Solution

Answer: Option A

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

10

Auditors of a company have to report to the

A) Board of directors B) Managing director C) Institutional investors D) Shareholders at the annual general meeting

Discuss

Answer & Solution

Answer: Option D

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

Auditing MCQ Questions and Solutions with Explanations | Commerce