Auditing MCQ Questions and Solutions with Explanations | Commerce

A. A branch office of a company can be granted exemption on the basis of quantum of activity criterion

B. If a satisfactory arrangement of scrutiny check of the books of account of a branch office of a manufacturing company has been made, it can be exempted from branch audit

C. Cost consideration should be considered as an important factor/ground for exemption from branch audit

D. The auditor should state in his audit report that branch office is exempted by virtue of quantum of activity or any other basis

A. An auditor must have passed M.Com

B. An auditor must have passed the exam of India audit and accounts service

C. An auditor must be Chartered Accountant under the Chartered Accountant Act, 1949

D. An auditor must be an employee of the company

A. 40

B. 30

C. 60

D. 15

A. All public limited companies

B. All private limited companies

C. Both public and private limited companies

D. All business enterprises

A. Within one month of completion of capital subscription state of the company

B. Within one month of the promotion of the company

C. Within one month of the commencement of the business of the company

D. Within one month of incorporation of the company

A. Statutory audit, internal audit and internal check

B. Internal check and internal audit only

C. Internal check, internal audit, statutory audit and physical control of assets

D. None of the above

A. He should inform the management

B. He should communicate it to the management if it is material

C. The auditor should ensure financial statements are adjusted for detected errors

D. Both B and C

A. Auditing

B. Testing

C. Vouching

D. Verification

A. a representative of shareholders

B. a representative of government

C. an employee of the company

D. an independent professional

A. To inspect

B. To examine

C. To hear

D. To investigate