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Here is the MCQs guide for the topic of Auditing. you will find various types of questions along with there answers in this
Q. Which of the following is normally the most reliable source of audit evidence?
A.
Internal audit
B.
Suppliers’ statements
C.
Board minutes
D.
Analytical review


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Q. Which of the following should NOT be considered at the planning stage?
A.
The timing of the audit
B.
Analytical review
C.
Last year’s written representation letter
D.
Obtaining written representations


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Q. International auditing standards are issued by the______________?
A.
International Accounting Standards Board
B.
International Federation of Accountants
C.
International Standards Board
D.
Auditing Practices Board


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Q. The fundamental objective of the audit of a company is to_____________?
A.
Protect the interests of the minority shareholders
B.
Detect and prevent errors and fraud
C.
Assess the effectiveness of the company’s performance
D.
Attest to the credibility of the company’s accounts


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Q. Auditing is compulsory for____________?
A.
Small scale business
B.
Partnership firms
C.
Joint stock Companies
D.
Proprietary Concerns


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Q. The main object of an audit is _____________?
A.
Expression of opinion
B.
Detection and Prevention of fraud and error
C.
Both (A) and (B)
D.
Depends on the type of audit.


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Q. The term ‘Audit’ is derived from a Latin word “audire” which means___________?
A.
To inspect
B.
To examine
C.
To hear
D.
To investigate


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Q. ____________ is a systematic examination of the books and records or a business?
A.
Auditing
B.
Vouching
C.
Verification
D.
Checking


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Q. Which of the following is normally the most reliable source of audit evidence?
A.
Internal audit
B.
Suppliers’ statements
C.
Board minutes
D.
Analytical review


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Q. According to ISA 500, the strength of audit evidence is determined by which two qualities?
A.
Appropriateness & competence
B.
Sufficiency & appropriateness
C.
Reliability & extensiveness
D.
Objectivity & independence


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