"In continuous audit the auditors staff is busy in checking the accounts throughout the year." This definition is given by
A. R. G. William
B. Spicer and Pegler
C. Carter
D. J. R. Bottleboy
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Payment for building purchased should be vouched with the help of:
A. Title Deed
B. Correspondence with the brokers
C. Building Account
D. Cash book
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Vouching implies:
A. Inspection of receipts
B. Examination of vouchers to check authenticity of records
C. Surprise checking of accounting records
D. Examining the various assets
E. Examining the methods of depreciation changed by the company
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The objectives of auditing are:
A. detection of frauds
B. detection of clerical errors
C. detection of errors of principle
D. All of the above
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When the audit is conducted regularly or irregularly throughout the year, it is called as
A. continuous audit
B. statutory audit
C. internal audit
D. interim audit
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Who is responsible for the appointment of statutory auditor of a limited company?
A. Directors of the company
B. Members of the company
C. The Central Government
D. All of the above
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In an audit of financial statements, substantive tests are audit procedures that:
A. may be eliminated for an account balance under certain conditions
B. are designed to discover significant subsequent events
C. will increase proportionately when the auditor decreases the assessed level of control risk
D. may be test of transactions, test of balance and analytical procedures
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A statutory auditor has a right of access at all times to:
A. Books and accounts of a company
B. Books, accounts and documents of the company
C. Books, accounts and vouchers of the company
D. Notices and documents of the company
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Name the audit, that is generally conducted between two annual audit.
A. External auditing
B. Standard auditing
C. Interim auditing
D. Final auditing
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The duties of an auditor of a partnership firm are governed by:
A. The Indian Partnership Act, 1932
B. The Chartered Accountants Act, 1949
C. The Indian Income Tax Act, 1961
D. The contract between the auditor and the firm
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Examining the books of accounts is the objective of auditing
A. Social objective
B. Main objective
C. Subsidiary objective
D. None of these
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The process of verification of cost accounts for the accuracy of data and examination of these records to ensure that they adhere to its principles, plans, procedures and objectives can otherwise be called:
A. Performance Audit
B. Strategic Audit
C. Cost Audit
D. Statutory Audit
E. Secretarial Audit
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MAOCARO 1988 is applicable to
A. Banking Companies
B. Insurance Companies
C. It ascertains whether the controls are adequate and effective
D. It evaluates plans to meet the objectives
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Before the work of audit is commenced, the auditor plans out the whole of audit work is called . . . . . . . .
A. Audit Plan
B. Audit Note
C. Audit Programme
D. Audit Control
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Recording a transaction twice in the books of original entry is an error of . . . . . . . .
A. principle
B. commission
C. duplication
D. omission
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The auditor of a Government company is appointed by the C & AG. His remuneration is fixed by:
A. The C & AG
B. The shareholders
C. The shareholders at an annual general meeting
D. The board of directors
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The independence of an internal auditor will most likely be assured if he reports to the:
A. President Finance
B. President System
C. Managing Director
D. CEO
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Which of the following would prevent double payment of the same voucher?
A. The person signing the cheque should cancel the supporting documents
B. Cheques should be signed by at best two persons
C. The data of payment of vouchers of similar nature should be the same or close to each other
D. All of the above
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Routine checking reduces the
A. work of an auditor
B. liability of an auditor
C. both above
D. none of the above
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Direct confirmation procedure can be applied to:
A. Debtors only
B. Creditors only
C. Debtors and creditors both
D. None of the above
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