mcqs bucket

  • Auditing Mcqs Questions | MCQs Bucket Largest Mcqs Website

    mcqsbucket

      Best guide for exams of all nature, Competitive exams and Interviews
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 one of the following is NOT a duty of the auditor?
A.
Duty to report to the company’s bankers
B.
Duty to report to the members
C.
Duty to sign the audit report
D.
Duty to report on any violation of law


Show Answer
Q. When an auditor is proposed for removal from office, which one of the following is he NOT permitted to do?
A.
Circulate representations to members
B.
Apply to the court to have the proposal removed
C.
Speak at the AGM/EGM where the removal is proposed
D.
Receive notification of the AGM/EGM where the removal is proposed


Show Answer
Q. A sale of Rs. 50.000 to A was entered as a sale to B. This is an example of____________?
A.
Error of omission
B.
Compensating error
C.
Error of commission
D.
Error of principle


Show Answer
Q. International auditing standards are issued by the______________?
A.
International Accounting Standards Board
B.
Financial Accounting Standards Board
C.
International Standards Board
D.
Auditing Practices Board


Show Answer
Q. Which of the following is NOT the responsibility of a company’s directors?
A.
Reporting to the shareholders on the accuracy of the accounts
B.
Establishment of internal controls
C.
Keeping proper accounting records
D.
Supplying information and explanations to the auditor


Show Answer
Q. Why do auditors concentrate their efforts on material items in accounts?
A.
Because they are easier to audit
B.
Because it reduces the audit time
C.
Because the risk to the accounts of their being incorrectly stated is greater
D.
Because the directors have asked for it


Show Answer
Q. Concealment of shortage by delaying the recording of cash receipts is known as_____________?
A.
Embezzlement
B.
Misappropriation
C.
Lapping
D.
None of these


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


Show Answer
Q. Process of verifying the documentary evidences of transactions are known as___________?
A.
Auditing
B.
Testing
C.
Vouching
D.
Verification


Show Answer
Q. An auditor is like a_______________?
A.
Blood haunt
B.
Watch dog
C.
May both according to situation
D.
None of these


Show Answer