Auditing Multiple Choice Questions#4

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

  1. 1)

    A good audit report must at least meet one of the following qualifications __________.

    • A) it should offer constructive and timely suggestions to the management.
    • B) it should not point out mistakes.
    • C) it should not be based on factual information.
    • D) it should not be based on balance sheet.

  2. 2)

    The work of one clerk is automatically check by another clerk is called _________.

    • A) Internal control.
    • B) Internal check.
    • C) Internal audit.
    • D) None of the above.

  3. 3)

    The owners of the company are called __________.

    • A) Debenture holders.
    • B) Debtors.
    • C) Shareholders.
    • D) None of the above.

  4. 4)

    Verification is __________.

    • A) the art of recording the business transaction.
    • B) an examination of the books of accounts.
    • C) the act of establishing the accuracy of entries in the books of accounts.
    • D) none of the above.

  5. 5)

    The main objects of investigation is _________.

    • A) to discover errors and frauds.
    • B) to prevent errors and frauds.
    • C) to verify statements.
    • D) all the above.

  6. 6)

    Internal controls and internal check are ____________.

    • A) one and the same.
    • B) different.
    • C) internal control includes internal check.
    • D) None of the above.

  7. 7)

    An auditor is like a ______.

    • A) Watchman.
    • B) foolish dog.
    • C) mad dog.
    • D) watch dog.

  8. 8)

    Special audit is necessary for _________.

    • A) inefficient concern.
    • B) processing concern.
    • C) trading concern.
    • D) manufacturing concern.

  9. 9)

    The company's auditor is expected to give _____________.

    • A) his expert opinion about the accounts.
    • B) a factual position about the accounts.
    • C) a critical review of the accounts.
    • D) financial assistance.

  10. 10)

    Auditors of a joint stock company are appointed by ______________.

    • A) directors of the company.
    • B) annual general meeting.
    • C) election at the annual general meeting.
    • D) debenture holders.