Auditing MCQ Questions and Solutions with Explanations | Commerce

A. Section 227

B. Section 233-A

C. Section 233-B

D. Section 224

A. 12

B. 20

C. 25

D. 28

A. Purchase invoices are independently matched with purchase orders and goods received notes

B. Goods received notes requires the signature of individual who authorized the purchase

C. Routine checks are performed by internal auditor fortnightly

D. Purchase function and production function are clubbed in one department

A. Staff specially appointed for the purpose

B. Internal auditor

C. Supervisor of the staff

D. Members of the staff

A. Equity shares or debentures of the company

B. Equity shares carrying voting of the company

C. Shares carrying voting rights of the company

D. Security of the company

A. prevention of frauds

B. detection of frauds

C. helping audit is depth

D. detection of errors

A. True and fair view

B. Inter-dependency of the auditor

C. Materiality

D. Ethical conduct

E. Report of audit evidence

A. Bills of contractor

B. Minutes of meeting of board of directors

C. Certificates of engineer and architect

D. Loan agreement

A. Accounting controls

B. Control environment

C. Control procedures

D. Supervision

A. Affects the audit risk

B. Affects the level of detection risk that auditor may accept

C. Helps him to fix materiality level for each financial assertion

D. Is directly related to inherent risk