The title of AAS2 issued by Council of ICAI is:
A. Objective and Scope of the Financial Statements
B. Objective and Scope of the Audit of Financial Statements
C. Objective and Scope of Business of an Entity
D. Objective and Scope of Financial Statements Audit
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Internal audit is undertaken
A. By independent auditor
B. Statutorily appointed auditor
C. By a person appointed by the management
D. By a government auditor
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An audit program is a program designed to
A. for the arrival and departure of the auditor
B. for routine check up
C. to inspect the branches of the company
D. for phased work of audit
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An auditor should study and evaluate internal controls to
A. Determine whether assets are safeguarded
B. Suggest improvements in internal control
C. Plan audit procedures
D. Express and opinion
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Standard Auditing Practice-1 (SAP-1) is related with
A. Objective and scope of audit of financial statement
B. Basic principles governing an audit
C. Documentation
D. Detection of frauds and errors
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In a company, Internal Auditor is appointed by:
A. Board of Directors
B. Shareholders
C. Government
D. Creditors
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After completion of the audit of a company the auditor should submit its report to the
A. Government
B. Court
C. Public
D. Shareholders
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A company auditor has to report
A. Board of directors
B. Managing Director
C. Institutional investors
D. To the shareholders in the annual general meeting
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Auditor is a watch dog and not a blood hound statement is given by:
A. Lord Justice lindley
B. Lord Justice lopes
C. Luca Pacialo
D. Spicer and Pegler
E. Montgomory
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Which of the following expenses should not be treated as capital expenditure?
A. Expenses paid on installation of a plant
B. Cost of dismantling a building in case a new building is to be constructed on the land
C. Legal expenses incurred to defend a suit related to title of patent. The suit has been lost
D. The fees paid to engineer who constructed the plant
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A number of checks and controls exercised in a business to ensure its efficient working are known as . . . . . . . .
A. Internal Check
B. Internal Control
C. Internal Audit
D. Interim Check
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Special audit may be ordered
A. By preference shareholders
B. By central government
C. By SEBI
D. By bondholders/debentureholders
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The cost audit was introduced in:
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The subsidiary voucher produced in the absence of primary voucher is called
A. General voucher
B. Note Book voucher
C. Counterfoil
D. Collateral voucher
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In India, balance sheet audit is synonymous to:
A. Annual audit
B. Continuous audit
C. Detailed audit
D. Statutory audit
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Propriety audit refers to
A. verification of accounts
B. examination of accounts of sole proprietory institutions
C. examination of need and rationale of expenses
D. audit of government companies
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In case the auditor gives a disclaimer of opinion in the audit report which of the following paragraph(s) of a standard unqualified audit report are modified?
A. Scope paragraph
B. Opinion paragraph
C. Scope and opinion paragraphs
D. Introductory, scope and opinion paragraph
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Which one of the following is not considered as relevant voucher while vouching cash sales?
A. Sales book
B. Copy of cash memo
C. Abstract of salesman
D. Cashier's summaries
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When restrictions that significantly affect the scope of the audit are imposed by the client, the auditor generally should issue which of the following opinion?
A. Qualified opinion
B. Disclaimer of opinion
C. Adverse opinion
D. Unqualified report with 'an emphasis of matter' paragraph
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Every voucher should be signed by
A. Accounts Officer
B. Accountant
C. Manager
D. Responsible Official
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