Auditing Multiple Choice Questions#3

NOTE: Attempt all Questions to see the Result at the bottom of this page.

  1. 1)

    A kind of audit conducted for a part of the accounting year is called _______.

    • A) Periodical audit.
    • B) Partial audit.
    • C) Cost audit.
    • D) Cost audit.

  2. 2)

    For which of the following, Audit is optional?

    • A) Trusts.
    • B) Joint stock companies.
    • C) Proprietorship concern.
    • D) None of the above.

  3. 3)

    The audit that is made compulsory under statute is called _________.

    • A) Statutory audit.
    • B) Partial audit.
    • C) Complete audit.
    • D) Continuous audit.

  4. 4)

    The receipt of goods must be entered in _________.

    • A) goods inward book.
    • B) goods outward book
    • C) receipt of Stores.
    • D) cash payment register

  5. 5)

    Auditing standards differ from auditing procedures in that procedures relate to ________.

    • A) Measure of performance.
    • B) Audit principles.
    • C) Acts to be performed.
    • D) Audit judgments.

  6. 6)

    An audit programme is ___________.

    • A) a description, memorandum or an outline of the work to be done in a business.
    • B) the rules and regulations prescribed for writing up the books of accounts.
    • C) to gain knowledge of clients accounting system.
    • D) a trial work.

  7. 7)

    The main object of the audit of the cash book may be ________.

    • A) to verify the assets and liabilities.
    • B) to know that all receipts and payments have been properly recorded.
    • C) to check the internal control system in business.
    • D) to check the bank balance.

  8. 8)

    The purpose of the audit of wage payment is to determine that __________.

    • A) the work is executed completely for which the workers are paid wages.
    • B) the workers are paid the correct amount of wages under proper authorization.
    • C) the workers are working regularly.
    • D) none of the above.

  9. 9)

    One of the audit procedures to check the issue of share capital of the newly formed company is __________.

    • A) the memorandum of association and articles of association.
    • B) the share transfer register.
    • C) the issue of debenture.
    • D) none of the above.

  10. 10)

    Capital reserves are created out of profits of __________.

    • A) a revenue nature.
    • B) a capital nature.
    • C) a secret reserve.
    • D) contingency reserve.