Auditing MCQ Questions and Solutions with Explanations | Commerce

A. that it does not reveal complete picture of business

B. that it does not guarantee accuracy of accounts

C. that auditor may by biased

D. all the above

A. Statutory audit

B. Balance sheet audit

C. Concurrent audit

D. All of the above

A. Identify cases of unrecorded revenue

B. Ensure proper disclosure in the balance sheet

C. Recomputed accrued income on the data of balance sheet

D. Any of these

A. To adjust

B. To dare

C. To hear

D. To here

A. The accounting records are checked by internal people

B. Assets verification is done internally

C. The work of one person is automatically checked by other person

D. The work of each person is checked internally

A. A client

B. Auditor

C. Both A and B

D. Company Law Board

A. Final Audit

B. Efficiency Audit

C. Cost Audit

D. Cash Audit

A. Physical verification of fixed assets is primarily the responsibility of the auditor

B. Ownership of fixed assets should be verified by examining the title deed by the auditor

C. Auditor should ascertain that the assets are in the possession of the client

D. The auditor should satisfy himself that the assets have been valued in the financial statements according to the accounting principles

A. Helping audit in depth

B. Prevention of frauds

C. Detection of frauds

D. None of these

A. Establish controls and executes them

B. Records cash receipts and cash payments

C. Perpetuate errors and frauds and conceals them

D. Record the transaction in journal and ledger