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)
151. Internal audit is conducted
a. Periodically
b. Throughout the year
c. Once in a year
Answer:- b. Throughout the year
152. The amount of application money received shall be deposited in a scheduled bank until________
a. Annual general meeting
b. General meeting
c. Certificate to commencement obtained
Answer:- c. Certificate to commencement obtained
153. Amount received as premium can be used to ___________
a. Purchase Assets
b. Pay of liabilities
c. Issue bonus shares
Answer:- c. Issue bonus shares
154. The auditors are liable under
a. Companies Act Only
b. Income Tax Act Only
c. All above
Answer:- c. All above
155. The maximum number of audit assignment an auditor can accept is limited to ————– companies
a. 10
b. 15
c. 20
Answer:- c. 20
156. Auditors can be appointed by ————– when the shareholders fail to appoint auditors at the general meeting
a. Board of directors
b. Central government
c. Company Low board
Answer:- b. Central government
157. The examinations of financial transactions with supporting evidences is called
a. Verification
b. Vouching
c. Auditing
Answer:- b. Vouching
158. Which among the following is an example of intangible asset?
a. Goodwill
b. Patents
c. All of these
Answer:- c. All of these
159. Which of the following is not an item current asset?
a. Stock
b. Sundry debtors
c. Furniture
Answer:- c. Furniture
160. The term inventories stands for
a. Raw materials
b. Work in progress
c. All of these
Answer:- c. All of these
