Lapping is also known as:
A. Teeming and lading
B. Embezzlement
C. Looping
D. Hacking
Select an option to see the answer and solution.
Which of the following are included in test of control?
A. Reperformance and observation
B. Inquiry and analytical procedures
C. Comparison and conformation
D. Inspection and verification
Select an option to see the answer and solution.
Cost audit is not necessary for units engaged in:
A. manufacturing
B. mining
C. processing
D. contracting
Select an option to see the answer and solution.
Internal auditor can be removed
A. By management
B. By shareholders
C. By statutory auditor
D. By Government
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Which of the following statements is most closely associated with analytical procedure applied at substantive stage?
A. It helps to study relationship among balance sheet accounts
B. It helps to discover material misstatements in the financial statements
C. It helps to identify possible oversights
D. It helps to accumulate evidence supporting the validity of a specific account balance
Select an option to see the answer and solution.
The report of the internal audit is presented to
A. Government
B. Shareholders
C. Creditors
D. Board of directors
Select an option to see the answer and solution.
In case of vouching, the auditor is least likely to examine authorization by appropriate authority in case of
A. Bad debts written off
B. Sales return
C. Purchase return
D. Discount allowed to customers as per organizational policy
Select an option to see the answer and solution.
Who among the following is eligible to be appointed as an auditor?
1. A person having qualified and recognized by ICAI as practicing CA
2. A body corporate
3. A person holding shares of the company having voting rights
A. Only 1
B. Only 1 and 2
C. 1, 2 and 3
D. Only 2
E. Only 2 and 3
Select an option to see the answer and solution.
Which of the following report not result in qualification of the auditor's opinion due to a scope limitation?
A. Restrictions the client imposed
B. Reliance on the report of other auditor
C. Inability to obtain sufficient appropriate evidential matter
D. Inadequacy of accounting records
Select an option to see the answer and solution.
Auditor gives report on:
A. Truthfulness of accounts
B. Fairness of accounts
C. Validity of accounts
D. All of these
Select an option to see the answer and solution.
In respect of forfeiture of shares, the Auditor should see:
A. Memorandum of Association
B. Articles of Association
C. Chairman's Speech
D. Duties of the Accountant
Select an option to see the answer and solution.
The word AUDIRE means:
A. To tell
B. To hear
C. To discuss
D. To show
Select an option to see the answer and solution.
Errors of Omission are:
A. Technical errors
B. Errors of principle
C. Compensating errors
D. None of the above
Select an option to see the answer and solution.
Cost Audit is compuslory in
A. Retail business
B. Manufacturing companies
C. Mines
D. None of these
Select an option to see the answer and solution.
If any director is disqualified from being appointed under section 274(1) (g), the auditor should mention this fact in his audit report. For this purpose, how does he determine their eligibility
A. He obtains a representation from each director
B. He obtains a management representation
C. He enquiries from Registrar of Companies
D. Any one of the above
Select an option to see the answer and solution.
Management audit is concerned with verification of:
A. Profitability of a company
B. Financial position of a company
C. Review of the management system and procedures
D. None of these
Select an option to see the answer and solution.
The subject matter of audit is given in the following section of the companies act
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A vacancy cause by the resignation of auditor is filled by
A. Board of Directors
B. Central Government
C. General Meeting of Shareholders
D. Managing Director of the Company
Select an option to see the answer and solution.
Which of the following is true about explanatory notes?
A. These are given by the directors of the company
B. These are given to adhere to requirements of section 211
C. These are given by auditors of the company in auditor's report
D. All of the above
Select an option to see the answer and solution.
A file containing the rules for conducting the organization under audit is called
A. Current file
B. Permanent file
C. Routine file
D. Completion file
Select an option to see the answer and solution.