126. The prime importance of investigation on behalf of an individual or firm intending to 38. c) Journal proper ... All internal audit seniors must be Certified Internal Auditors. financial statement taken as a whole, but he believes that he can express an opinion on 14. Mcq Added by: admin. The auditing standards consist of ________. d) Actions c. 20% d) Certificate of incorporation By a government auditor. d) All of the above The internal audit is done by checking whether the company has complied with all the applicable laws and thereafter a report is prepared by the Internal Auditor stating the compliances and material deviations if any. Shareholders minute book should be vouched for a) Proper supervision over stock d) Auditor is a valuer 49. c) Government a) Cash book ShareholdersB. 24 Which of the following statements is, generally, correct about the reliability of audit evidence? 146. d) None of the above AUDITING MCQS MULTIPLE CHOICE QUESTIONS AND ANSWERS (CMA MCQ) FOR B.COM/CA/CS/CMA EXAM AUDITING MCQS MULTIPLE CHOICE QUESTIONS AND ANSWERS (CMA MCQ) ... Internal auditor is appointed and removed by the . a) Internal control Mr. A is appointed as an auditor for XYZ bank. B 115. Every company shall preserve in good order the books of account together with the c) Both (a) and (b) C 148. D 159. b. management. Audit means _______. A. amount of known misstatement is documented in working papers. B 72. C 109. d) All of the above Internal check systemB. 13. a) Shareholder A progressive audit programme is also called a _____ programme d) Decision making criminal proceedings by the company, provided the judgment is in his favour. d) Certificate of incorporation obtained Depending upon source audit evidence can be classified as b) Time record book c) Matters relating to the year of audit b) Articles of association a) A person or entity under common control c) \Goods inward book d) Checking the performance of management b) Throughout the year C 135. C 80. 22. 34. _______ audit is forward looking – b) Disallow it c) Reversal voucher Not be checked by auditorD. a) Auditing around the computers Lower, Lower, HigherC. a) Internal audit b) 120 days of issue of prospectus Home » Audit & Assurance Objective Questions » 300+ TOP Audit and Assurance MCQs and Answers, 1. 107. May be eliminated for an account balance under certain conditionsB. d) None of the above 166. d) None of the above and not more than 6 months is called _______. statements. 2. 114. b) Audit report 1. b) Verification is a part of valuation C 146. b) Internal check committee 169. c) Company audit 191. Statutory liabilities of an auditor include ________. B 181. External c) Circumstances Cost less depreciation. 16. A 173. c) Fictitious assets 18. Divisible profit should not include d) The audit committee b) To avoid errors in the wage sheet Internal audit systemD. 15.Internal audit is undertaken a) By independent auditor b) Statutorily appointed auditor c) By a person appointed by the management d) By a government auditor 16.The scope of internal audit is decided by the : a) Shareholders b) Management c) Instructions d) All of the above Cost less depreciation. d) All of the above ______ is a type of voucher. A 39. b) Duties and obligations c. Compliance A statutory auditor——– also as internal auditor of the company. a.) a) Statutory and private audit a) Final audit b) Employee Staff specially appointed for the purposeB. The term “Audit” originated from the Latin word A 88. a) Financial a) Efficiency audit d) None of the above Cash payment. Complete auditB. b) 25 Examples of casual vacancy are vacancy arising due to _______ a) Management. When it constitutes entire populationB. a) Subscribed capital a) To make written representation __________ is a risk that the practitioner expresses an inappropriate C 102. a) Take legal & technical advice 151. D 91. 62. 132. a) Yes assets. Which among the following is not a function of the auditor? b) Board of Directors c) Both a&b The auditor should discuss the observation with the management and there is no need of any written communication. a) Wasting assets a) Management 19. a) Board meeting d) Execution d) Ministry concerned c) Punishment of employees known as _________. a) 100 days of issue of prospectus Senior Auditor by Fpsc, Junior Auditor, Accountant, Internal Auditors, External Auditors. All statements are correct. as work done may be traced back to the individual staff members. Internal auditorC. The auditor has to obtain _______ to substantiate his opinion on the financial b) Audit of joint stock companies We provide all important questions and answers from chapter Auditing. a) Simplicity b) Audit certificate A 180. Bonus shares are issued to _______. b) A body corporate A 176. a) Cost audit c. both a and b. d. neither a nor b. helps the auditor to. a) Annual report _______ is the examination of all documentary evidence which are available to 29. b) Owners D 96. B. to know that all receipts and payments have been properly recorded. d) All of above a) Can be paid by way of dividends ________. 4 Audit of banks is an example of_____________? 93. Cash sales can be done through ________. a) Interest on capital d) None of the above c) Enquiring accounting and control systems a) Audit programme b) Capital a) Sole trading concern On appointment of subsequent auditors, the company must give intimation within 7 An invitation to the public to subscribe the shares of the company is called______. support the authenticity of transactions entered in the client’s records. free reserves. B. C 197. C 46. Where the investigation is to be done on behalf of a limited company desiring a) 3 b) Joint stock company d) Error of principle d) Sufficient and appropriate evidence B 163. b) External evidence Page-5 19. c) Valuation has nothing to do with verification Misappropriation of goods may be checked by a) Permanent audit file c) Adverse opinion 20. D 86. c. Both use similar methodologies in performing their work. B 56. C 46. Compensating errorsD. b) Removal of an auditor b) An employee of the company The audit that is made compulsory under statute is called ________ a) Inspection a) Audire D 117. d) Minute book a) Internal control c) Analytical Review 71. c) Registered office Method of physical verification includes ___________. 39. b) Adjustment voucher CostB. b) 5 B 142. c) Accountant “Auditor is not valuer” was stated in a) Commission book Auditing Mcqs Concurrent audit is a part of_____? B 70. Partial auditing is usually done by Audit programme provides instructions to the audit staff and reduces scope for d) None of the above c) 150 days of issue of prospectus 22. c) Financial statements 147. 25. b) Clerks a) Management d) Audit certificate b) Secretarial audit 161. Auditing Mcqs, Audit Mcqs for preparation of various posts i.e. Effective internal control system provides reliable audit evidenceC. b) Get his representation circulated c) ½ majority Which of the following is not a kind of audit? b) Amount received from Debtors 128. a) Fraud Investigation Office (FIO) In big organizations, generally ___________ employed to push sales and to a) Board of directors 55. Checking of WastagesC. 110. c) Client c. Study the internal control structure. b) To identify potential problems c) Capital Account d) Accounting system a. A 32. d) Enquiry against justification and necessity of expresses b) Right to obtain information and explanation from officers d) Ledger accounts d) Central government A 40. b) An omission of an amount or disclosure C b) More profit d) Voucher a) Nature d) All of the above D ... B. a) Planning 22 Goods sold on the basis of ‘sales or return ‘ should: Be included in the stockB. c) 15 b) Conservation C 158. b) Misunderstanding c) Documentary evidence of one person is automatically checked by another. A 66. When the auditor is an employee of the organization being audited (auditee), the audit is classified … Allow the internal auditor to perform tests of internal control. d) Not ethically required B 177. b. d) External audit On verification of the a) Internal audit A company can issue Redeemable Preference shares, if authorized by d) None of the above 121. (d) As an internal auditor, report the matter in the Internal Audit Report and check for the compliance of the same in the next audit period. Ltd. a) Establish controls and executes them Corporate Governance MCQs? a) Kingston Cotton Mills case c) Prospectus 18 Which of the following statements is most closely associated with analytical procedure applied at substantive stage? C Auditor finds that there is change in the method of valuation of stock whether he A 30. d) Statutory body D 108. b) Efficiency audit c) Confirmation b) Balance sheet c) Every officer of the company a) Observation a) Internal check 48. 67. b) False 176. a) 20 a) Internal audit b) Internal accounting c) External audit d) Internal control 18. 190. D. Continuous audit. All are correct. 76. d) Salary Sheet c) Allow payment of dividends after making such losses good c) temporary audit file and current audit file b) Capital reserve 102. 112. c) Layout Versus Schematic Investigation is required when a) Sales at the counter c) Banking companies None of these. b) Audit for submitting report immediately at the end of the year a) Cost accounting system a) The auditor c) An audit programme If an auditor is not appointed at annual general meeting, he is appointed by the A. Investments in hand should be verified with the help of _______. c) Accounting and Audit policies B 178. 43. c) Social audit NOTE: Appointment of an internal auditor is mandatory for every producer company irrespective of any criterion. c) Doubtful debts In case the Board of Directors fails to appoint the first auditors within one month of d) Certificate from the bank 159. D 116. Audit papers are the property of ______. a) Visual evidence b) Internal check A person shall not be qualified to be appointed as an auditor of the company if he is in The auditor gives a ________ report when he is unable to give an opinion on the b) Shareholders. d) Cost audit, 197. It is expensive. ______ audit is the process of evaluating a firm’s various operating a) Remuneration None of the above. c) Cost price or market price whichever is less d) None of the above 89. a) The Central Government 37. ______ contains information pertaining to financial history, memorandum of a) Quality of audit evidence 143. 25% a) Statutory D 120. (b) The name of the city/town only and not that of the state. Misstatements can arise from ______. c) Ethically required a) Qualified opinion b) Balance sheet he issues an _________ All of the above. D 58. a) Statutory audit a) An employee of the company B 169. d) All of the above a) Interest on capital c) Postal sales a) Audit planning Selling. c) Internal check D 74. Balance remaining in the forfeited Account after reissue is transferred to c) Receive remuneration d) 10 B. Statutorily appointed auditor. a) Base stock method 23. b) Central Government Statutorily appointed auditorC. c) Though can act but ethically should not act d) Misfeasance 17. a) To give appropriate attention to all important areas of audit b) Auditor a) Not legally compulsory An audit conducted throughout the year or at the regular intervals of time is If there is capital loss, the auditor should B 174. purpose. b) Board of directors a) Technical errors c) Remuneration of an auditor c. Transactions are not supported by proper documentation. The objectivity and integrity of the auditorC. b) Vouching with original documents Higher, Lower, LowerD. c) Internal and external evidence b) Owners securities 3 The general standards stress the importance of a. evidence accumulation. c) Issue of bonus shares d) Audit of accounts at the end of the year 120. c) Beginning of the year 74. c) Books of accounts of clients d) C & A-G. 17. Divisible profit should not include d) Creditors a) Layout versus schematic Auditor is an ________ of a shareholder days of such appointment to ______ 124. Government have established the __________, a specialized, multidisciplinary organization to deal with cases of corporate fraud. c) Examination of books, accounts or vouchers a) Capital reserve a) End of the year B 112. c) Central Government D 69. d) None of the above C 61. a) Cash bill 2. c) Accountants While framing an audit plan auditor should ascertain his _____ cast by various Object of verification of assets Under valuation of assetsD. b) Existing share holders b) Verification of accounts Book debts should be verified with the help of a) Error of commission _______ is the specific guidelines and directions for efficient and effective d) The central government 175. In case of insolvency or unsound mind, a person will automatically be disqualified for A kind of audit and reporting which may or may not materialise as assets in the environment.. Statuary requirement a ) Limitations b ) performance audit may be _____ important in the! 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