Consider the following elements:
A. 2, 1, 3, 4, 5
B. 1, 2, 3, 4, 5
C. 5, 1, 4, 3, 2
D. 4, 1, 3, 2, 5
Select an option to see the answer and solution.
Auditing and accounting are concerned with which of the following financial statements?
A. Auditing uses the theory of evidence to verify the financial information made available by accountancy
B. Auditing lends credibility dimension and quality dimension to the financial statements prepared by the accountant
C. Auditor should have a thorough knowledge of accounting concepts and convention to enable opinion on financial statements
D. All of the above
Select an option to see the answer and solution.
What is the first stage of energy audit?
A. Survey
B. Report
C. Checking
D. Preparation
Select an option to see the answer and solution.
In how many days from the registration, the first Auditor of the Company be appointed?
Select an option to see the answer and solution.
Under which Section of Companies Act. The remuneration of the Auditor has been discussed?
A. Section 224 (2)
B. Section 224 (8)
C. Section 225
D. Section 231
Select an option to see the answer and solution.
Which of the following can be accepted as a supporting document?
A. Invoice/Challan
B. Debit note/Credit note
C. E-mails/letters
D. All of the above
Select an option to see the answer and solution.
A flow chart, made by the auditor, of an entity's internal control system is a graphic representation that depicts the auditor's:
A. Understanding of the system
B. Understanding of fraud risk factors
C. Documentation of assessment of control risk
D. Both A and C
Select an option to see the answer and solution.
The objective of the ordinary audit of financial statements is the expression of an opinion on
A. The fairness of the financial statements
B. The accuracy of the financial statements
C. The accuracy of the annual report
D. The balance sheet and income statement
Select an option to see the answer and solution.
Who requires a legal audit?
A. Sole trader
B. Partnership
C. Public limited company
D. Joint Hindu Family Business
Select an option to see the answer and solution.
If the auditor believes that the financial statements are fairly stated or is unable to reach and conclusion because of insufficient evidence, the auditor
A. Should withdraw from the engagement
B. Should request an increase in audit fees so that more resources can be used to conduct the audit
C. Has the responsibility of notifying financial statements, users through the auditor's report
D. Should notify regulators of the circumstances
Select an option to see the answer and solution.
Which of the following statements is not correct about materiality?
A. Materiality is a relative concept
B. Materiality judgments involve both quantitative and qualitative judgments
C. Auditor's consideration of materiality is influenced by the auditor's perception of the needs of an informed decision maker who will rely on the financial statements
D. At the planning state, the auditor considers materiality at the financial statement level only
Select an option to see the answer and solution.
An auditor conducts a surprise check on the pay day, i.e., the day wages and salaries are paid. The primary purpose of this audit procedure is to
A. Ensure there are no ghost workers
B. Ensure the casual workers employed are authorized by the supervisor
C. Test procedures for distributing paycheques
D. Obtain an understanding of the internal control system
Select an option to see the answer and solution.
The management of a company, to which AS3 is not applicable, does not include statement of cash flows in its annual report. The auditor should express:
A. Unqualified opinion
B. Qualified opinion
C. Adverse opinion
D. Any of these depending upon materiality and pervasiveness and adequacy of disclosure
Select an option to see the answer and solution.
Who is qualified to be a company auditor?
A. Employee of the company
B. Body corporate
C. Person indebted to the company for an amount exceeding Rs. 1,000
D. Chartered accountant
Select an option to see the answer and solution.
Statement I: Safety audit is a risk management tools.Statement II: Management audit is a part of traditional auditing.
A. Statement I is correct
B. Statement II is correct
C. Both statements are correct
D. Both statements are incorrect
Select an option to see the answer and solution.
The audit conducted to check and examine the efficiency and effectiveness of management is called
A. Management audit
B. Cost audit
C. Energy audit
D. Safety audit
Select an option to see the answer and solution.
Which report will be submitted by an auditor, if he is dissatisfied regarding the facts and informations?
A. Qualified report
B. Clean report
C. Management report
D. Cost report
Select an option to see the answer and solution.
When an independent auditor relies on the work of an internal auditor, he should
A. Examine the scope of the internal auditor's work
B. Examine the system of supervising review and documentation of the internal auditor's work
C. Examine the adequacy of the related-audit programme
D. All of the above
Select an option to see the answer and solution.
Consider the following activities and choose the correct sequence of these activities undertaking by auditor:
A. 3, 1 and 2
B. 3, 2 and 1
C. 2, 3 and 1
D. 1, 2 and 3
Select an option to see the answer and solution.
The cost auditor gives his report to the
A. Directors
B. Shareholders
C. Managers
D. Company law board
Select an option to see the answer and solution.
