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)
181. —————- is concerned with the allocation of work among employees
a. Internal control
b. Internal check
c. Internal audit
Answer:- b. Internal check
182. The duties of internal auditor is prescribed by
a. Companies act
b. Company law board
c. Management
Answer:- c. Management
183. Internal audit is considered as a service to ——————-
a. Share holders
b. Board of directories
c. Management
Answer:- c. Management
184. Pre-arranging and coordinating the audit work is called ——————
a. Audit planning
b. Vouching
c. Verification
Answer:- a. Audit planning
185. A fixed audit programme is also called a ——— programme
a. Tailor made
b. Man made
c. Auditor made
Answer:- a. Tailor made
186. Share holders minute book should be vouched for
a. Payment to vendors
b. Payment to promoters
c. Issue of bonus shares
Answer:- c. Issue of bonus shares
187. —————- is deducted from called up capital to get paid up capital
a. Subscribed capital
b. Issued capital
c. Calls in arrears
Answer:- c. Calls in arrears
188. Discount on issue of shares is shown under the ————— lead
a. Current asset
b. Preliminary expanses
c. Miscellaneous expanses
Answer:- c. Miscellaneous expanses
189. To forfeit shares ————— days notice to the share holder’s given
a. 40
b. 14
c. 24
Answer:- b. 14
190. ————– of the companies Act 1956 prescribes the duty of preparing a report by an auditor
a. Sec-227(2)
b. Sec-273(1)
c. Sec-224(2)
Answer:- a. Sec-227(2)
