'Goods sent on approval basis' have been recorded as 'Credit sales'. This is an example of:
A. Error of principle
B. Error of commission
C. Error of omission
D. Error of duplication
Select an option to see the answer and solution.
Under vouching, checking is done of:
A. Books of original entry
B. Final books of accounts
C. Balance sheet
D. All of the above
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Which of the following is a basic evidence of a transaction?
A. Journal entry
B. Cash book
C. Voucher
D. Pass book
Select an option to see the answer and solution.
A written plan containing the details regarding the conduct of a particular audit is called
A. Audit programme
B. Audit memorandum
C. Audit notebook
D. None of these
Select an option to see the answer and solution.
The Audit of Joint Stock Company is:
A. Compulsory
B. Optional
C. Voluntary
D. None of the above
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Vouching is concerned with:
A. Verification of authority and authenticity of transaction
B. Validity of documentary evidences
C. Accuracy of recorded entries and postings in books
D. All of above
Select an option to see the answer and solution.
Which one of the following is the auditor of a company?
A. Professional chartered accountant
B. A body corporate
C. An officer or employee of the company
D. A person who is in the service of an officer or employee of that company
Select an option to see the answer and solution.
Which of the following sections of the Companies Act, 2013 deals with qualifications of the auditor?
A. Section 141
B. Section 224(1) and section 224(2)
C. Section 226(3) and section 226(4)
D. Section 224(3) and section 224
Select an option to see the answer and solution.
A company auditor at a time cannot be the auditor of more than how many companies:
A. more than 10 companies
B. more than 20 companies
C. more than 50 companies
D. no limit is prescribed
Select an option to see the answer and solution.
Vouching may be termed as:
A. Identification of the documentary evidence supporting the transaction
B. Verification of the documents supporting the transaction
C. Authentication of the document supporting the transaction
D. Verification of the accuracy and authenticity of the transaction
Select an option to see the answer and solution.
The balance of cash in often between one to five per cent of total assets. Tick the most appropriate statement with regard to verification of cash in context of this:
A. Cash in always material as materiality is qualitative concept
B. No audit of cash is needed when, in auditor's opinion, cash is immaterial. Materiality is a relative concept
C. The cash balance need only be audited if the balance is in overdraft
D. Cash is to be verified if control risk is assessed as high
Select an option to see the answer and solution.
The current file of the auditor's working papers, generally, should include:
A. A flowchart of the internal controls
B. Organisation charts
C. A copy of financial statements
D. Copies of bond and debentures
Select an option to see the answer and solution.
According to Section 227(1) of Companies Act 1956, the auditor does not have the right-
A. To sign the audit report
B. To see the books, accounts and vouchers of company
C. To obtain information and explanation
D. To correct any wrong description
Select an option to see the answer and solution.
Contents of Audit Report are given in companies Act under section:
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"Balance Sheet Audit" in India means the audit of:
A. Balance Sheet and Profit and Loss Account items
B. Balance Sheet items
C. Assets items of Balance Sheet
D. Liability items of Balance Sheet
Select an option to see the answer and solution.
Routine check-up is
A. By the managers of the organization
B. By the employees of the organization
C. By the auditors
D. By shareholders
Select an option to see the answer and solution.
Which of the following statements is not true with respect to management representations obtained as per AAS11?
A. Authenticated copy of relevant minutes of meetings may be regarded as management representation
B. It should always be in working
C. It may be dated prior to the report date
D. It should be addressed to the auditor
Select an option to see the answer and solution.
The creditor's accounts, generally, have credit balance. Debit balance may be due to:
A. Advance paid against an order
B. Goods returned
C. Wrong debit to supplier account
D. Any of these
Select an option to see the answer and solution.
Which of the following implies an enquiry into the valuation, ownership, title, existence and possession of assets?
A. Vouching
B. Verification
C. Internal check
D. Routine checking
Select an option to see the answer and solution.
A Company Auditor may be removed by the
A. Managing Director
B. Board of Directors
C. Shareholders in General Meeting
D. None of the above
Select an option to see the answer and solution.