Sr.

no Questions Option-A Option-B Option-C Option-D Correct Option

Following Standard on Auditing deals with
570 200 320 210 Answer2
1 Basics principles governing an Audit
repairs to building Freight paid on purchase of new
Which of the following errors will affect the total of purchase journal is shot by repairs to furniture wrongly debited to
wrongly debited to machinery debited Answer2
trial balance rupees 2000 furniture account
2 building account to freight account
In which type of audit, the auditor examines
Special Audit Tax Audit Branch Audit Cash Audit Answer 4
3 only the cash transactions?
4 Balance Sheet Audit is also referred to as ? Limited Audit Unlimited Audit Assets Audit Liability Audit Answer 1
Which of the following is not the content of allocation of audit signing of audit
name of the client audit procedure Answer4
5 audit programme ? work report
If the audior is not satisfied with internal no need of no need of
Reduced Increased Answer2
control then the extent of examination is to be ? examination auditing
6
7 Internal auditors are appointed by Board of Directors in a Shareholders
Board meetingin annual general meeting The management The central government Answer3
Objective of an audit of financial statement is
to enable the auditor to express an opinion on the system of double accounting policies laid down by the an identified financial reporting
the provisions of Income Tax Act Answer3
whether the financial statements are prepared entry bookkeeping management framework
8 in accordance with
If the financial statements are prepared as per
the financial reporting Framework the auditor
gives an opinion that the financial statements true and correct correct and fair giving a true and fair view reliable Answer3
are the
9 following
Following Standard on Auditing deals with
200 320 210 570 Answer4
10 Going concern concept
true and fair view of financial position
Following is the incidental object of auditing prevention of error detection of fraud detection of errors and frauds Answer3
11 of the concern
True and fair view of
Opinion on the future prospect of
Out of the following which one is not the the financial position
Detection of errors and errors Verify Assets and liabilities business of the Answer4
objective of the audit of the
concern
12 concern
Following means part of profits secretly kept
Accounting Window dressing Secret reserve Auditing Answer3
13 inside for future use
Following means recording the transaction in
the books of accounts and accounting auditing investigations cross verification Answer1
14 preparing final accounts
Following means examination of accounts for
auditing accounting verification investigation Answer4
15 some specific purpose
Who is responsible for prevention and
auditor accountant management cashier Answer3
16 detection of errors and frauds ?
The provision for conduct of audit of Banking electricity supply act
banking Companies Act 1949 insurance act 1938 Indian trust act Answer2
17 companies is governed by the following act ? 1948
One of the following audit is not compulsory Insurance Public limited
partnership firm Banking company Answer1
18 under any law company company
Sales to Mena Rs. 143 posted to Meenu as Rs.
error of omission error of commission error of principle fraud Answer 2
19 143. This is ?
Settlement of Resolving conflicts among the
Audited Financial Statements are helpful in ? Disclosure Settlement of Disputes Answer 4
20 Accounts Employees
opinion means the Financial records are Disclaimer of
Qualified Adverse Unqualified Answer 2
21 misinterpreted Opinion
22 Inherent Limitations of Audit ? Can be avoided Can be Deleted Should be Can not be Answer 4
Opinion means the Financial records are Disclaimer of
Qualified Adverse Unqualified Answer 4
23 free of any tempering ? Opinion
 The Report of the Auditor should be based on
Error Credits Fraud Evidence Answer 4
24 obtained in the course of Audit
Which Audit technique is traditional and its
arithmetic verification is done by Test checking Routine checking Verification Observation Answer2
25 junior staff
Out of the following which audit is done after
Continuous audit Concurrent audit final audit system Audit Answer3
26 the work is completed ?
Who can be removed by shareholders with the
Employees Internal auditors External Auditor Accountant Answer3
27 approval of Central Governement ?
In which type of audit, the auditor is required Balance sheet
Partial Complete Cash Answer 2
28 to check each and every transaction? Audit
The Audit generally starts after the completion
of accounting year when the books of accounts Continuous Audit Statutory audit Internal Audit Complete Audit Answer 4
29 are balanced and closed ?
Audit is conducted between two annual Continuous
Internal Audit Interim Audit Statutory audit Answer 2
30 completed or final audits Audit
Which Audit It is conducted to find out the
interim profit and know the financial position Statutory audit Internal Audit Interim Audit Continuous Audit Answer 3
31 at the end of a part of the accounting year ?
Who is responsible for proper audit of branch Statutory
Any Auditor Internal Auditor Branch Auditor Answer 4
32 accounts ? Auditor
The audit conducted by one or more auditors
Tax Audit Joint Audit Statutory Audit Internal Audit Answer 2
33 jointly is?
Unde which audit, the auditor examines
thoroughly selected transactions right from Operational Audit Special Audit Audit In Depth Statutory audit Answer 3
34 their origin to the conclusion ?
Audit It is done to ensure compliance with the
statutory audit Operational Audit Tax Audit Branch Audit Answer 3
35 provisions of the Income Tax Act 1961 ?
Which audit is also known as performance Operational Efficiency
Internal Audit Statutory Audit Answer 4
36 audit ? Audit Audit
It refers to critical evaluation of total
performance of business organisation in
relation to public contribution, human resource Operational Social
Branch Audit Internal Audit Answer2
contribution, environmental contribution, Audit Audit
product & service contribution & society
37 contribution. ?
The chief
Cost auditor is appointed by ? The shareholders The Board of Directors The employees Answer2
38 Auditor
39 There are no prescribe qualification for ? Statutory Auditor Cost Auditor Internal Auditor External Auditor Answer3
40 Following is not advantage of continuous audit Audit Staff kept busy Moral Check on Staff Division of Labour Delay in preparation of Accounts Answer4
Following Standard on Auditing states the with
SA 200 SA 210 SA 230 SA 250 Answer3
41 audit Documentation ?
A detailed plan of audit work to be performed
Audit procedure Audit plan Audit report Audit programme Answer4
In the given estimated time period ?
42
Following person have the right to retain audit Directors of the Employees of the
Shareholders Auditors Answer4
43 working papers ? company company
Right of lien would be entertained by the detection of errors non availability of
non payment of audit fees weak internal control system Answer3
44 auditor in case of the following ? and frauds stock valuation statement
Where are the books of accounts kept in case Administrative
Branch office Registered office Director's office Answer2
45 of public limited company office
Which section as per Companies Act 2013
states that the books of account it Section 125 Section 122 Section 128 Section 121 Answer3
46 must be kept at the registered office ?
 The auditor should plan his work to enable
An efficient and
him to conduct an effective audit in the a professional A proper A confident Answer4
timely
47 following manner ?
Audit plan should be based on knowledge of
profits net worth business reputation Answer3
48 the clients
49 An audit program may be the following ? statutory permanent Fixed or flexible standard Answer3
Audit programme is prepared by the following the client and the the auditor and his the chief
the client Answer3
50 persons ? auditor assistance accountant
51 Audit program should be ? Oral written Rigid Boring Answer2
Paper is the link between the client’s records
News Working Loose Ruled Answer2
52 and the auditor’s report.?
Current file and permanent file are together Audit Audit working
Audit plan Audit procedures Answer4
53 known as ? programme papers
54 An Audit Programme may be ? Statutory Permanent Fixed or Flexible Standard Answer3
the record of the reasoning on all
the details of the the details of the auditors'
The audit working papers contain ? significant matters where the members the details of the auditors' attendance Answer2
audit staff attendance Properties
55 of the audit
Mistakes Unsatisfactory frauds
Audit program contains information about ? Audit Plans Answer1
56 observed account system observed
Trial Balance for year under audit will be filed
Permanent file Current file Personal file Audit Note Book Answer2
57 in the ?
Following order technique means a formal
observation inspection enquiry confirmation Answer4
58 enquiry from outsiders
Following is the procedure to check the totals
Investigation Casting Verification Enquiry Answer2
59 of books and ledgers
60 Following reduces workload and saves time Test check Routine check Internal check Interna l control Answer1
The following transactions are not suitable for purchase material
sales transactions cash transactions Answer3
61 test checking transactions transactions
The following transactions are suitable for test opening and closing
creditors ledger account balances bank reconciliation statement non recurring transaction Answer1
62 checking entries
Which method of selecting sample to ensure
Haphazard
that all items in the population have equal Random selection systematic selection Block Sampling Answer1
Selection
63 chance of selection ?
Which type of internal control system have a
administrative
direct impact on the the reliability of the Operational control accounting control internal check Answer3
control
64 financial information ?
The responsibility for adopting sound
accounting policies and maintaining Company Financial Statement Companys Internal
Cheif Accountant Answer2
adequate internal control rest the following Management Auditor Audit department
65 person ?
Internal control does not aim to achieve the reliability of efficiency and effectiveness of compliance with laws and
zero business risk Answer4
66 following ? financial reporting operations regulations
Physical examination” is the inspection or Cash, inventory, and cash, inventory, and intangible cash, inventory, and tangible fixed
cash, inventory, and patents Answer4
67 count by the auditor of items such as ? payroll fixed assets assets
If the audior is not satisfied with internal
no need of no need of
control Reduced Increased Answer2
examination auditing
68 then the extent of examination is to be ?
Effective managerial
Good internal control system requires Ineffective control Incompetent People Competent People Answer1
69 suppression & review
70 The objective of internal control is to prevent frauds select right sample improve financial soundness select right people Answer1
The chief
Scope of iternal audit is decided by ? The shareholders The Management The employees Answer2
71 Auditor
The Auditor has less
Test check may be used when ? accounts are not ready Internal Control is unsatisfactory When frauds and errors are there Answer1
72 time
73 Internal check is instituted by ? The management The Auditor The Client Debtors Answer1
 same as test same as
Routine Checking is process mechanical doubtful Answer1
74 check internal check
Every Unlisted public company having a
Outstanding Loans Exceeding of
₹ 10 Crores ₹ 100 Crores ₹ 200 Crores ₹ 500 Crores Answer 2
or more have to appoint an
75 Internal Auditor as per Companies Act 2013