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)
171. Audit working papers are ————————–
a. Important information about audit
b. Appointment letters regarding audit
c. Letter of notice
Answer:- a. Important information about audit
172. Current audit file consists of
a. Matters of future importance
b. Matters relations to post years
c. Matters relating to the year of audit
Answer:- c. Matters relating to the year of audit
173. ——————- begins where accounting ends
a. Bookkeeping
b. Auditing
c. Internal check
Answer:- b. Auditing
174. —————- audit is compulsory for joint stock companies
a. Statutory
b. Final
c. Continuous
Answer:- a. Statutory
175. Treating revenue expenditure as capital expenditure is an example of error of ——————-
a. Principle
b. Compensating
c. Clerical
Answer:- a. Principle
176. Financial statements are prepared by
a. The accountant
b. The auditor
c. Managing director
Answer:- a. The accountant
177. Preliminary expanses not written off are treated as
a. Fixed assets
b. Intangible assets
c. Fictitious assets
Answer:- c. Fictitious assets
178. Verification of assets involves a critical examination of
a. Ownership
b. Existence
c. All of these
Answer:- c. All of these
179. Finished goods are valued for a balance sheet purpose
a. At cost price
b. At market price
c. At lower of cost or market price
Answer:- c. At lower of cost or market price
180. —————- includes financial and non-financial control
a. Internal check
b. Internal control
c. Internal audit
Answer:- b. Internal control
