Management audit implies
A. Audit undertaken on behalf of the management
B. Evaluating the performance of various management processes and functions
C. Audit undertaken on behalf of the government to punish the management
D. Compulsory audit
Select an option to see the answer and solution.
Which of the following is not corroborative evidence?
A. Minutes of meetings
B. Confirmations from debtors
C. Information gathered by auditor through observation
D. Worksheet supporting consolidated financial statements
Select an option to see the answer and solution.
Internal audit is helpful in
A. Prevention of errors and frauds
B. Detection of errors and frauds
C. Auditing items in depth
D. None of the above
Select an option to see the answer and solution.
While vouching, how will the auditor ensure that all credit sales transactions have been recorded by the entity?
A. Examining cut off points
B. Matching entries in the sales book against renumbered sales invoices and goods' outward notes
C. Counting the number of invoices and matching the number with entries on sales book
D. Both A and B
Select an option to see the answer and solution.
The date on auditor's report should not be
A. The data of AGM
B. Later than the date on which the accounts are approved in board's meeting
C. Earlier than the date on which the accounts are approved by the management
D. Both A and B
Select an option to see the answer and solution.
Payment for wage should be vouched with the help of:
A. Piece work statement
B. Wage sheets
C. Minutes book
D. Bank pass book
Select an option to see the answer and solution.
Checking the valuation of assets is a part of:
A. Routine Checking
B. Vouching
C. Verification
D. Internal check
Select an option to see the answer and solution.
In how many days will the auditor write to the Registrar of companies regarding the acceptance of his appointment
A. 7 days
B. 10 days
C. 20 days
D. 30 days
Select an option to see the answer and solution.
The internal auditors of a joint-stock company
A. Need not possess the qualification laid down in the Companies Act
B. Should be chartered accountants
C. Should be chartered accountants or cost accountants
D. Should hold some other professional qualifications
Select an option to see the answer and solution.
Auditors of a company have to report to the
A. Board of directors
B. Managing director
C. Institutional investors
D. Shareholders at the annual general meeting
Select an option to see the answer and solution.
Accounting for intangible assets is related to
A. AS-10
B. AS-12
C. AS-24
D. As-26
Select an option to see the answer and solution.
The technique of management audit in which functions and achievements of two or more firms are compared, is called
A. Comparative analysis
B. Inter-firm comparison
C. Routine check
D. Ratio analysis
Select an option to see the answer and solution.
. . . . . . . . audit refers to the evaluation of a company's performance against planned goals in the areas of social responsibilities.
A. Cost
B. Social
C. Interim
D. Final
Select an option to see the answer and solution.
In vouching, salary register should be compared with
A. Payment book
B. Cashbook
C. Wages register
D. Cash voucher
Select an option to see the answer and solution.
The area of operations in auditing includes
A. Condition of appointment
B. Needs of related law
C. Both A and B
D. Either A or B
Select an option to see the answer and solution.
During the audit of accounts receivable, an auditor obtains sufficient and appropriate evidence in support of the existence assertion this evidence can be used to support which of the following assertions in respect of sales?
A. Existence
B. Cut-off
C. Occurrence
D. Completeness
Select an option to see the answer and solution.
Vouching helps the auditors to ascertain whether the entries in the book . . . . . . . . . , this is the basic objective of auditing.
A. True and fair
B. Only true
C. Only fair
D. None of these
Select an option to see the answer and solution.
Which of the following acts do not have any coverage under Secretarial Audit?
A. The Companies Act, 1956 and the rules made under there
B. The Securities Contracts (Regulation) Act, 1956 ('SCRA') and the rules made under there
C. Foreign Exchange Management Act, 1999 and the rules & regulations made under there
D. Specific Regulation of Securities and Exchange Board of India Act, 1992
E. Payment of Bonus Act, 1965 and the rules under there
Select an option to see the answer and solution.
The statutory auditor is duty-bound to :
A. Review the managerial processes and procedures
B. Prepare the final accounts of the company in accordance with the provisions of the company law
C. Submit a report to the members of the company
D. Verify physically the various assets of the company
Select an option to see the answer and solution.
The main object of an audit of accounts of a joint-stock company is
A. Detection and prevention of errors
B. Detection and prevention of frauds
C. Detection and prevention of errors and frauds
D. To find out whether the balance sheet and profit and loss account are drawn up properly according to the Companies Act, and they represent a trace and fair view of the state of affairs
Select an option to see the answer and solution.