Auditing MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5

1.
Lapping is also known as:

A. Teeming and lading

B. Embezzlement

C. Looping

D. Hacking

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2.
Which of the following are included in test of control?

A. Reperformance and observation

B. Inquiry and analytical procedures

C. Comparison and conformation

D. Inspection and verification

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3.
Cost audit is not necessary for units engaged in:

A. manufacturing

B. mining

C. processing

D. contracting

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4.
Internal auditor can be removed

A. By management

B. By shareholders

C. By statutory auditor

D. By Government

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5.
Which of the following statements is most closely associated with analytical procedure applied at substantive stage?

A. It helps to study relationship among balance sheet accounts

B. It helps to discover material misstatements in the financial statements

C. It helps to identify possible oversights

D. It helps to accumulate evidence supporting the validity of a specific account balance

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6.
The report of the internal audit is presented to

A. Government

B. Shareholders

C. Creditors

D. Board of directors

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7.
In case of vouching, the auditor is least likely to examine authorization by appropriate authority in case of

A. Bad debts written off

B. Sales return

C. Purchase return

D. Discount allowed to customers as per organizational policy

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8.
Who among the following is eligible to be appointed as an auditor?
1. A person having qualified and recognized by ICAI as practicing CA
2. A body corporate
3. A person holding shares of the company having voting rights

A. Only 1

B. Only 1 and 2

C. 1, 2 and 3

D. Only 2

E. Only 2 and 3

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9.
Which of the following report not result in qualification of the auditor's opinion due to a scope limitation?

A. Restrictions the client imposed

B. Reliance on the report of other auditor

C. Inability to obtain sufficient appropriate evidential matter

D. Inadequacy of accounting records

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10.
Auditor gives report on:

A. Truthfulness of accounts

B. Fairness of accounts

C. Validity of accounts

D. All of these

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Auditing MCQ Questions and Solutions with Explanations | Commerce

1. Lapping is also known as:

Answer & Solution

2. Which of the following are included in test of control?

Answer & Solution

3. Cost audit is not necessary for units engaged in:

Answer & Solution

4. Internal auditor can be removed

Answer & Solution

5. Which of the following statements is most closely associated with analytical procedure applied at substantive stage?

Answer & Solution

6. The report of the internal audit is presented to

Answer & Solution

7. In case of vouching, the auditor is least likely to examine authorization by appropriate authority in case of

Answer & Solution

8. Who among the following is eligible to be appointed as an auditor? 1. A person having qualified and recognized by ICAI as practicing CA 2. A body corporate 3. A person holding shares of the company having voting rights

Answer & Solution

9. Which of the following report not result in qualification of the auditor's opinion due to a scope limitation?

Answer & Solution

10. Auditor gives report on:

Answer & Solution

Read More Section(Auditing)

1.
Lapping is also known as:

2.
Which of the following are included in test of control?

3.
Cost audit is not necessary for units engaged in:

4.
Internal auditor can be removed

5.
Which of the following statements is most closely associated with analytical procedure applied at substantive stage?

6.
The report of the internal audit is presented to

7.
In case of vouching, the auditor is least likely to examine authorization by appropriate authority in case of

8.
Who among the following is eligible to be appointed as an auditor?
1. A person having qualified and recognized by ICAI as practicing CA
2. A body corporate
3. A person holding shares of the company having voting rights

9.
Which of the following report not result in qualification of the auditor's opinion due to a scope limitation?

10.
Auditor gives report on: