Auditing MCQ Questions and Solutions with Explanations | Commerce

A. Management

B. Shareholders

C. Government

D. Statutory body

A. To detect errors or fraud

B. To comply with GAAP

C. To gather sufficient appropriate evidence

D. To assess audit risk

A. Detecting and preventing fraud

B. Writing the books of account

C. To check airthmatical correctness

D. Detection and preventing errors

A. Brief

B. Internal

C. Analytical

D. Configured

A. The auditor should express an opinion on financial statements

B. His opinion is no guarantee to future viability of business

C. He is responsible for detection and prevention of frauds and errors in financial statements

D. He should examine whether recognised accounting principle have been consistently

A. Obtain an understanding, design substantive test, perform tests of control, and make a preliminary assessment of control risk

B. Design substantive tests, obtain an understanding, perform tests of control, and make a preliminary assessment of control risk

C. Obtain an understanding, make a preliminary assessment of control risk, perform tests of control, design substantive procedures

D. Perform tests of control, obtain and understanding, make a preliminary assessment of control risk, design

A. Defend themselves in the event of a law suit

B. Justify the conclusion they have, otherwise reached

C. Satisfy the requirements of the act

D. Unable them to reach conclusions about the fairness of the financial statements

A. Statement I is correct, but statement II is incorrect

B. Statement II is correct, but statement I is incorrect

C. Both statements are correct

D. Both statements are incorrect

A. Kingston Cotton Mills case

B. London Oil Storage Co. case

C. London and General Bank case

D. None of the above

A. Valuation of assets is the responsibility of the management

B. The auditor can rely on a certificate issued by an authorized valuationer as to the valuation of assets in the balance sheet

C. The auditor should value the asset as per generally accepted accounting principle

D. Valuation is no part of auditor's duty