An analysis of fixed assets account has revealed possibility of unrecorded sale of plant and machinery. Which of the following audit procedures may be adopted to discover it?
A. Examination of property tax files
B. Inquiry of plant manager
C. Examination of debits to accumulated depreciation
D. All of the above
Select an option to see the answer and solution.
Which of the following is/are beneficiary(s) of cost audit?
1. Manager
2. Shareholders and investors
3. Society and consumers
4. Government
Select the correct answer:
A. Both 2 and 3
B. Both 1 and 4
C. 2, 3 and 4
D. All of the above
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Voucher should be addressed to the . . . . . . . .
A. Auditor
B. Client
C. Employee
D. None of these
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In order to audit petty cash expenses, the auditor has to check
A. Petty cash register
B. Internal controls
C. Reconciliation cash has been repaid to the client
D. All of the above
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An auditor is a watchdog but not a bloodhound. This statement has been given in decision of which case?
A. Kingston cotton mills case
B. Garner vs Murray case
C. Paglar cotton mills case
D. None of the above
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The main objective of Auditing is
A. To detect errors and fraud
B. To prevent errors and fraud
C. To find out accuracy completeness and validity of accounts and documents
D. All of the above
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The liability of the auditor can be
A. Only civil
B. Only criminal
C. Either civil or criminal
D. Civil or criminal
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The definite period of auditing is
A. 1 financial year
B. 2 financial years
C. 3 financial years
D. 5 financial years
Select an option to see the answer and solution.
The main objective of an audit is
A. Expression of opinion
B. Detection and prevention of fraud and error
C. Both A and B
D. Depends on the type of audit
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Which of the point is not to be considered while checking, a voucher?
A. Name of party
B. Serial number of voucher
C. Credit period of payment
D. Accounting entry
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To be an auditor, a person must be an
A. Employee
B. Employer
C. Accountant
D. Independent person
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The report through which an auditor expresses his opinion on the financial statement is known as
A. Cost report
B. Audit report
C. Statutory report
D. Management report
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Choose the correct statement in reference to accounting standards., choose the correct statement:
A. Accounting standards codify the generally accepted accounting principles
B. Accounting standards lay down the norms of accounting policies and practices by way of codes or guidelines
C. The main purpose of accounting standards is to provide information to the user on the basis of which the accounts have been prepared
D. All of the above
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The auditor does not have to check the following while auditing salaries/wages
A. Calculation of the salary
B. Whether the calculation was verified by department heads
C. Whether dues like PF, PT, TDS have been deducted and deposited
D. Payment has been made to all the employees on first of the month
Select an option to see the answer and solution.
The step(s) involved in conducting system audit is/are
A. Audit evidence
B. Conduct audit tests
C. Concluding the audit
D. All of these
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The auditor, in general, is an
A. Employee of the company
B. Agent of the company
C. Agent of the shareholders
D. None of the above
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The term of the auditorship of first auditor would be from the date of appointment till:
A. The conclusion of statutory meeting
B. The conclusion of first annual general meeting
C. The conclusion of next annual general meeting
D. The date of removal
Select an option to see the answer and solution.
In which audit, the examination of the effects of air emission, water and soil pollution, landscape etc is done?
A. Management audit
B. Energy audit
C. Environmental audit
D. Safety audit
Select an option to see the answer and solution.
The Accounting Standard Board was set up by
A. Institute of Chartered Accountants of India
B. Institute of Cost and Works Accountants of India
C. Institute of Company Secretaries of India
D. Government of India
Select an option to see the answer and solution.
The primary objective of an audit is to
A. Verify and value assets as per the Companies Act
B. Verify liabilities and report to the registrar of companies
C. Verify and report on the state of affairs of the business
D. Appoint auditors
Select an option to see the answer and solution.