Auditing MCQ Questions and Solutions with Explanations | Commerce

A. the work of the auditor

B. the liability of the auditor

C. neither the work nor the liability of the auditor

D. both the work and the liability of the auditor

A. Board of Directors

B. Shareholders

C. Central Government

D. Promoters Company

A. Undervaluation of closing stock

B. Charging capital expenditure to revenue

C. Goods sent on consignment being shown as actual sales

D. Charging higher rates of depreciation on fixed assets than actually required

A. Auditor should attend physical stock taking only if inventory is material

B. Auditor may not attend physical verification of stock by management, if he does not find it appropriate to rely on it

C. If inventory is material, even when the auditor is not placing reliance on the physical verification by the management, he should attend it

D. The primary objective of an auditor's observation of an entity's observation of an entity's stock take is to obtain direct knowledge that the stock and has been property counted

A. (i) only

B. Both (i) and (ii)

C. Both (i) and (iii)

D. All of the above

A. inefficient concern

B. processing concern

C. trading concern

D. manufacturing concern

A. Reduce inherent risk

B. Identify problem areas

C. Evaluate reasonableness of estimates

D. Evaluate appropriates of GAAP

A. Section 209 (d)

B. Section 233 (13)

C. Section 233 (B)

D. Section 224

A. Maintaining personnel records and approving changing in wages rates

B. Proposing pay roll summary and disbursement of wages

C. Making salary statements and filing tax returns

D. Comparing time clock records with time reports prepared by supervisors and preparing list of workers employed along with the units of production for each one of them

A. It appraises managerial performance

B. It is a statutory obligation

C. It ascertains whether the controls are adequate and effective

D. It evaluates plans to meet the objectives