Which of the following statements is correct:
A. Auditing is compulsory for all business concerns
B. Auditing ensures complete accuracy of accounts
C. Auditing guarantess accuracy of accounts
D. Auditing does not guarantee accuracy of accounts
Select an option to see the answer and solution.
Which of the following laws is applicable for the professional Misconduct observed at a factory premise on the part of an Auditor?
A. Code of Civil Procedure
B. Code of Criminal Procedures
C. Companies Act, 2013
D. Factories Act, 1948
E. Chartered Accountants Act, 1949
Select an option to see the answer and solution.
Domestic use of office telephone is
A. Embezzlement of labor
B. Embezzlement of property
C. Embezzlement of convenience
D. None of these
Select an option to see the answer and solution.
The quantity of audit working papers complied on engagement would most be affected by:
A. Management's integrity
B. Auditor's experience and professional judgment
C. Auditor's qualification
D. Control risk
Select an option to see the answer and solution.
The auditor has a right to:
A. Obtain information and explanation
B. Obtain information and explanation from the employees and officers
C. Obtain information and explanation necessary for the purpose of audit
D. Both B and C
Select an option to see the answer and solution.
Report of Cost Audit is to be submitted to
A. the Company Secretary
B. the shareholders in the Annual General Meeting
C. the Central Government
D. none of the above
Select an option to see the answer and solution.
Valuation of assets on wrong basis is
A. technical error
B. clerical error
C. compensating error
D. error of principle
Select an option to see the answer and solution.
. . . . . . . . the audit risks . . . . . . . . the materiality and . . . . . . . . the audit effort.
A. Lower, higher, lower
B. Lower, lower, higher
C. Higher, lower, lower
D. Lower, higher, higher
Select an option to see the answer and solution.
The auditor has serious concern about the going concern of the company. It is dependent on company's obtaining a working capital loan from a bank which has been applied for. Then management of the company has made full disclosure of these facts in the notes to the balance sheet. The auditor is satisfied with the level of disclosure. He should issue
A. Unqualified opinion
B. Unqualified opinion with reference to notes to the accounts
C. Qualified opinion
D. Disclaimer of opinion
Select an option to see the answer and solution.
The work of audit begins, where the following ends
A. Business
B. Stock valuation
C. Sales
D. Accounting
Select an option to see the answer and solution.
When is evidential matter, generally, considered sufficient?
A. When it constitutes entire population
B. When it is enough to provide a basis for giving reasonable assurance regarding truthfulness
C. When it is objective and relevant
D. When auditor collects and evaluates it independently
Select an option to see the answer and solution.
Which one of the following is not an objective of auditing?
A. Detection of errors
B. Verification of accounts
C. Punishment of frauds
D. Preventions of frauds
Select an option to see the answer and solution.
An Auditor makes effort to detect mainly following types of fraud
A. Misappropriation of cash
B. Misappropriation of goods
C. Frauds in books of accounts
D. All of the above
Select an option to see the answer and solution.
Schedule II of the Companies Act, 2013 has prescribed rates of depreciation for double shift and triple shift working for which one of the following assets?
A. Building
B. Plant and Machinery
C. Furniture and fittings
D. Ships
Select an option to see the answer and solution.
Which of the following is a revenue reserve?
A. Capital redemption reserve
B. Security premium account
C. Debenture redemption reserve
D. Capital reserve
Select an option to see the answer and solution.
Which of the following statement is correct?
A. Audit covers several years
B. Audit and investigation both covers several years
C. Investigation covers several years
D. To know the average earning capacity of an enterprise is one of the objects of audit
E. Audit can reveal the financial position of an enterprise
Select an option to see the answer and solution.
For which of the following the company auditor has civil liability?
A. Willfully giving false details
B. Negligence
C. Misstatement in prospectus
D. All of the above
Select an option to see the answer and solution.
With reference to techniques of auditing, which of the following statement is correct?
(1) Routine checking means daily checking of books of accounts.
(2) Test checking should always be applied in cash book.
Select the correct answer using the option given below
A. Only 1
B. Only 2
C. Both 1 and 2
D. Neither 1 nor 2
Select an option to see the answer and solution.
The auditor's permanent working paper file should not normally, include:
A. Extracts from client's bank statements
B. Past year's financial statements
C. Attorney's letters
D. Debt agreements
Select an option to see the answer and solution.
In case of a company, which of the following is not correctly matched?
A. Internal audit ⇔ Obligatory
B. Statutory audit ⇔ Mandatory
C. Continuous audit ⇔ Optional
D. Management audit ⇔ Voluntary
Select an option to see the answer and solution.