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Auditing Mcqs

Why do auditors concentrate their efforts on material items in accounts?

  • (A)  Because they are easier to audit
  • (B)  Because it reduces the audit time
  • (C)  Because the risk to the accounts of their being incorrectly stated is greater
  • (D)  Because the directors have asked for it
Submitted By :Ali Uppal


The concept of stewardship means that a company’s directors________________?

  • (A)  Are responsible for ensuring that the company complies with the law
  • (B)  Are responsible for ensuring that the company pays its tax by the due date
  • (C)  Safeguard the company’s assets and manage them on behalf of the shareholders
  • (D)  Report suspected fraud and money laundering to the authorities
Submitted By :Ali Uppal


The fundamental objective of the audit of a company is to_____________?

  • (A)  Protect the interests of the minority shareholders
  • (B)  Detect and prevent errors and fraud
  • (C)  Assess the effectiveness of the company’s performance
  • (D)  Attest to the credibility of the company’s accounts
Submitted By :Ali Uppal


Concealment of shortage by delaying the recording of cash receipts is known as_____________?

  • (A)  Embezzlement
  • (B)  Misappropriation
  • (C)  Lapping
  • (D)  None of these
Submitted By :Ali Uppal


Auditing is compulsory for____________?

  • (A)  Small scale business
  • (B)  Partnership firms
  • (C)  Joint stock Companies
  • (D)  Proprietary Concerns
Submitted By :Ali Uppal


Process of verifying the documentary evidences of transactions are known as___________?

  • (A)  Auditing
  • (B)  Testing
  • (C)  Vouching
  • (D)  Verification
Submitted By :Ali Uppal


An auditor is like a_______________?

  • (A)  Blood haunt
  • (B)  Watch dog
  • (C)  May both according to situation
  • (D)  None of these
Submitted By :Ali Uppal


The main object of an audit is _____________?

  • (A)  Expression of opinion
  • (B)  Detection and Prevention of fraud and error
  • (C)  Both (A) and (B)
  • (D)  Depends on the type of audit.
Submitted By :Ali Uppal


The term ‘Audit’ is derived from a Latin word “audire” which means___________?

  • (A)  To inspect
  • (B)  To examine
  • (C)  To hear
  • (D)  To investigate
Submitted By :Ali Uppal


____________ is a systematic examination of the books and records or a business?

  • (A)  Auditing
  • (B)  Vouching
  • (C)  Verification
  • (D)  Checking
Submitted By :Ali Uppal