Auditing MCQ Questions and Solutions with Explanations | Commerce

A. Credit sales

B. Sales returns

C. Credit purchases

D. Cash purchases

A. As a good inquiry

B. To establish the correctness of the accounting records

C. For some specific purpose

D. As a constitutional requirement

A. Violation of generally accepted principles of auditing

B. Violation of accounting principles

C. Lack of adequate information and explanations

D. All of the above

A. The transaction relates to current year

B. The transaction has taken place

C. The transaction is genuine

D. The transaction is legal

A. Continuous examination of accounts

B. Intermittent examination of accounts

C. Audit work to find and check the interim profits of a company

D. Carrying on audit for bonus purpose at the end of the year

A. Physical verification of assets

B. Checking the values of assets

C. Examining the authority of their acquisition

D. All of the above

A. Any trading organization

B. Smaller concern

C. Banking business

D. Manufacturing companies

A. General audit

B. Preliminary audit

C. Safety audit

D. System audit

A. Only statement I is true

B. Only statement II is true

C. Both statements are true

D. Both statements are false