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)
161. Sales day book is used for recording
a. Credit sales
b. Cash sales
c. All sales
Answer:- a. Credit sales
162. ————— audit is more suitable for small business houses
a. Continuous
b. Annual
c. Partial
Answer:- b. Annual
163. Vouching is an examination of ———– to ascertain the accuracy and authenticity of transactions in the book of accounts
a. Audit files
b. Audit note book
c. Documents
Answer:- c. Documents
164. ————— is a written plan containing details with regard to the conduct of a particular audit
a. Audit Note book
b. Audit programme
c. Audit files
Answer:- b. Audit programme
165. ————— is the verification of books of accounts from Income tax point of view
a. Cost audit
b. Tax audit
c. Management audit
Answer:- b. Tax audit
166. Investigation is conducted
a. Regularly
b. Quarterly
c. As and when required
Answer:- c. As and when required
167. Investigation is required when
a. Fraud is suspected in business
b. On acquisition of running business
c. All of them
Answer:- c. All of them
168. Which among the following is not a right of company auditors
a. Right to access the book accounts
b. Right to seek explanations
c. Right to lies on books of accounts
Answer:- c. Right to lies on books of accounts
169. Test checking is done when there is an effective system of ————–
a. Internal control
b. Internal audit
c. Internal check
Answer:- c. Internal check
170. Test checking means
a. Checking of all transactions
b. Checking of half of the transactions
c. Checking of selected items
Answer:- c. Checking of selected items
