This kind of audit is conducted generally between two annual audit . . . . . . . .
A. Internal Audit
B. Interim Audit
C. Final Audit
D. Continuous Audit
Select an option to see the answer and solution.
When accounting work is distributed among the staff members in such a way that the work done by one person is independently and automatically checked by another person the system is called:
A. Internal audit
B. Internal check
C. Test checking
D. Continuous audit
Select an option to see the answer and solution.
The auditor has noticed existence of recurring losses sale of fixed assets this indicates:
A. Depreciation charges are insufficient
B. Policy of sale or disposal of fixed assets needs to be reviewed
C. The sale of assets have not been properly authorized
D. Accounting errors
Select an option to see the answer and solution.
A departure from recognized accounting principle is disclosed in a note to the financial statements. The auditor should:
A. Issue a standard unqualified audit report
B. Issue a qualified report
C. Issue an unqualified report with 'emphasis of matter' paragraph
D. Disclaim opinion
Select an option to see the answer and solution.
Audit of accounts is mandatory under Section 44AB if the total sales are more than
A. 30 lakh rupees
B. 40 lakh rupees
C. 50 lakh rupees
D. 60 lakh rupees
Select an option to see the answer and solution.
Of the following, which is the least persuasive type of audit evidence?
A. Bank statements obtained from the client
B. Documents obtained by auditor from third parties directly
C. Carbon copies of sales invoices inspected by the auditor
D. Computations made by the auditor
Select an option to see the answer and solution.
The "Guidance Note on Revenue" issued by the ICAI does not deal with:
A. Sales revenue
B. Revenue rendering service
C. Revenue from sale of fixed assets
D. Income from interest, dividend
Select an option to see the answer and solution.
The tool used by an auditor to monitor and control the progress of audit work is:
A. engagement diary
B. audit programme
C. audit working papers
D. audit notes
Select an option to see the answer and solution.
Following are included in the fraud
A. Embezzlement of money
B. Embezzlement of goods
C. Mistake in accounting
D. All of these
Select an option to see the answer and solution.
By whom the internal auditor is appointed?
A. Management
B. Government
C. Shareholders
D. Employees
Select an option to see the answer and solution.
An internal audit is watchdog of?
A. Management
B. Shareholders
C. Government
D. Outsiders
Select an option to see the answer and solution.
Which of the following statement is not true?
A. A partnership firm can be appointed as a statutory auditor of limited company
B. Appointment can be made in the name of the firm
C. Majority of the partners should be practicing in India
D. All partners should be chartered accountants
Select an option to see the answer and solution.
The branch auditor is appointed by:
A. Shareholders in an annual general meeting
B. Shareholders in general meeting
C. Board of directors in board meeting
D. Any of the above
Select an option to see the answer and solution.
Which one of the following statement is not true?
A. An auditor is not a servant of the appointing company
B. The auditor is an agent of shareholders, but they are not bound by all types of notices given to the auditor by the company
C. In case a person other than a retiring auditor is to be appointed as an auditor a notice of this intention must be given to the shareholders of the company as least 10 days before the date of the General Meeting of the company
D. A debtor of the company for more than Rs. 1,000 cannot be appointed auditor of the company
Select an option to see the answer and solution.
Audit done by the employees of the business undertaking is called . . . . . . . .
A. Final Audit
B. Management Audit
C. Government Audit
D. Internal Audit
Select an option to see the answer and solution.
A company has earned profit on sale of its machine and wants to pay dividend out of it. An auditor should:
A. accept it
B. not accept it
C. accept under certain conditions
D. none of the above
Select an option to see the answer and solution.
The scope of work of an internal auditor is determined by
A. Shareholders
B. Management
C. Government
D. Law
Select an option to see the answer and solution.
An auditor is held criminally liable for:
A. loss to his client
B. Neglect of his duty
C. Offences against statutory provisions
D. Frauds
E. Misappropriation of cash
Select an option to see the answer and solution.
Which of the following is not a limitation of audit as per AAS4?
A. Objectivity of auditor's judgment
B. Selective testing
C. Persuasiveness of evidence
D. Limitations of internal control system
Select an option to see the answer and solution.
Auditing, which is taken up when final accounts are ready, is called:
A. Periodical audit
B. Continuous audit
C. Interim audit
D. Irregular audit
Select an option to see the answer and solution.