PRACTICAL AUDITING MCQ
Table of Contents
BCOM – SEMESTER V1
PRACTICAL AUDITING MCQ
MULTIPLE CHOICE QUESTIONS
PRACTICAL AUDITING MCQ
Auditing typically refers to financial statement audits or an objective examination and evaluation of a company’s financial statements – usually performed by an external third party. Audits can be performed by internal parties and a government entity, such as the Internal Revenue Service (IRS)
1. Auditing refers to
a) Preparation and checking of account
b) Examination of accounts of business units only
c) Examination of accounts of professional accountants
d) Checking of vouchers
Answer:- c) Examination of accounts of professional accountants
2. Main object of auditing is
a) Detection of errors
b) To find out whether P&L a/c & B/S show true and fair state affairs
c) Detection of frauds
d) Detection and prevention of frauds and errors.
Answer:- b) To find out whether P&L a/c & B/S show true and fair state affairs
3. Auditing is luxury for a
a) Joint stock company
b) Partnership firm
c) Small shop-keeper
d) Government company
Answer:- c) Small shop-keeper
4. Auditing is compulsory for
a) Small scale business enterprises
b) All partnership firms
c) All joint stock companies
d) All proprietary concerns
Answer:- c) All joint stock companies
5. Propriety audit refers to
a) Verification of accounts
b) Examination accounts of propriety concerns
c) Enquiry against justification and necessity of expresses
d) Audit of Govt. companies
Answer:- c) Enquiry against justification and necessity of expresses
6. Propriety is normally undertaken in case of
a) Joint stock company
b) Government company
c) Statutory corporation
d) Govt. departments
Answer:- d) Govt. departments
7. Interim audit refers to
a) Examination of accounts continuously
b) Examination of accounts intermittently
c) Audit work to find out and check interim profits of a company
d) Carrying on audit for bonus purposes at the end of the year
Answer:- c) Audit work to find out and check interim profits of a company
8. Final audit implies
a) Audit of accounts at the end of the year
b) Finally checking of accounts to reveal frauds
c) Audit for submitting report immediately at the end of the year
d) Audit of banking companies
Answer:- a) Audit of accounts at the end of the year
9. A continuous audit is specially needed for
a) Any trading concern
b) Smaller concerns
c) Banking companies
d) Any manufacturing companies
Answer:- c) Banking companies
10. Joint audit implies
a) Audit of two concerns together
b) Audit of joint stock companies
c) Audit of joint sector companies
d) Audit by two firms of C.A
Answer:- d) Audit by two firms of C.A
