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)
141. Accounting standards are prepared by
a. SEBI
b. RBI
c. ICAI
d. ITA
Answer:- c. ICAI
142. Which of the following is referred to confirm the allotment of shares to the vendor
a. Cash book
b. Pass book
c. Director’s minute
Answer:- c. Director’s minute
143. Share premium Account is shown on the _______________
a. Asset side of Balance sheet
b. Liability side of Balance sheet
c. Credit side of profit and loss Account
Answer:- b. Liability side of Balance sheet
144. Issue of shares at discount should be sanctioned by the ________________
a. Board of directors
b. Share holders
c. Company Law Board
Answer:- c. Company Law Board
145. The maximum rate of discount on shares shall not exceed________________
a. 20%
b. 15%
c. 10%
Answer:- c. 10%
146. Discount on issue of shares not written of is shown separately in Balance sheet under the head_____________
a. Miscellaneous expenditure
b. Preliminary expanses
c. Current assets
Answer:- a. Miscellaneous expenditure
147. __________________section of Companies Act deals with share Capital
a. 69
b. 60
c. 50
Answer:- a. 69
148. Which among the following is not a function of the author
a. Checking errors and frauds
b. Vouching with original documents
c. Preparing final Accounts
Answer:- c. Preparing final Accounts
149. Audit conducted as per the provisions of law is _____________
a. Statutory Audit
b. Continuous Audit
c. Social Audit
Answer:- a. Statutory Audit
150. The scope of auditing does not cover.
a. Vouching
b. Checking arithmetical accuracy
c. Ledger posting
Answer:- c. Ledger posting
