Which of the following statements is, generally, correct about the reliability of audit evidence?
A. To be reliable, evidence should conclusive rather than persuasive
B. Effective internal control system provides reliable audit evidence
C. Evidence obtained from outside sources routed through the client
D. All are correct
Select an option to see the answer and solution.
Audit in depth is synonymous for:
A. Complete audit
B. Completed audit
C. Final audit
D. Detailed audit
Select an option to see the answer and solution.
Which of the following is NOT part of the process of management audit?
A. Determinations of responsibility center
B. Review of performance of each responsibility center
C. Review of organizational structure
D. Investigating the depreciation method and its application on fixed assets in the company
Select an option to see the answer and solution.
Which of the following is not true with regard to verification of assets?
A. It invoices substantiation of occurrence of transactions
B. Its objective is to establish existence, ownership, possession, valuation and disclosure of assets
C. The auditor has to form an opinion on different aspects
D. All are true
Select an option to see the answer and solution.
Protection of investors' is which object of auditing?
A. Social
B. Economic
C. Primary
D. Subsidiary
Select an option to see the answer and solution.
What time does the audit start-
A. When book-keeping ends
B. When the accounting work is over
C. When the management goes on leave
D. When new partner is admitted
Select an option to see the answer and solution.
Auditing and Assurance Standard-2 (AAS-2) are concerned with
A. Vouching
B. Valuation of assets and liabilities
C. Audit planning
D. Objective and scope of the audit of financial statements
Select an option to see the answer and solution.
The auditor of a company can be removed by the following
A. Board of directors
B. Company registrar
C. Debentureholders
D. General meeting of shareholders
Select an option to see the answer and solution.
If the auditor assesses control risk as high-
A. Document the conclusions
B. Documents the reasons along with conclusions
C. Perform tests of control
D. Perform walk through tests
Select an option to see the answer and solution.
Social Audit Report was first brought out by
A. TISCO
B. UTI
C. BHEL
D. AIR INDIA
Select an option to see the answer and solution.
While observing a client's annual physical inventory, an auditor conducted test counts for certain test counts were higher than the recorded quantities in the client's perpetual records. This situation could be the result of the client's failure to record:
A. Purchase returns
B. Sales returns
C. Goods with consignor
D. Purchase discounts
Select an option to see the answer and solution.
If in a company, the work of one person is complementary to the work of another, then it is related to
A. Internal control
B. Internal audit
C. Internal check
D. None of the above
Select an option to see the answer and solution.
Which of the following is NOT a reason for fraud?
A. Absence or laxness in internal control
B. Overstatement of stock
C. Understatement of purchases
D. Keeping voucher for monetary transactions
E. Misappropriation of cash and goods
Select an option to see the answer and solution.
Test checking should not be applied to-
A. Sales Book
B. Purchase Book
C. Bills Book
D. Cash Book
Select an option to see the answer and solution.
Which of the following is a primary voucher:
A. Invoice
B. Carbon copy of receipts
C. Counterfoil
D. None of the above
Select an option to see the answer and solution.
Which of the following audits is exclusively done by Company Secretary?
A. Statutory Audit
B. Cost Audit
C. Financial Audit
D. Secretarial audit
E. Internal audit
Select an option to see the answer and solution.
Auditor has to submit the audit report to:
A. Directors
B. Creditors
C. Shareholders
D. Government
E. Registrar of the company
Select an option to see the answer and solution.
A company has bought patents. Which of the following methods is most suitable for providing depreciation on them?
A. SLM
B. WDV
C. Sum of year digits
D. Any of the above
Select an option to see the answer and solution.
Cost audit of a company under Section 233 B can presently be conducted by
A. company's auditor appointed under section 224
B. only a Chartered Accountant in practice
C. only a Cost Accountant in practice
D. any Accountant
Select an option to see the answer and solution.
If a company auditor does something inappropriate in his performance of duty which causes the financial loss to the company, he shall be held guilty
A. Civil negligence
B. Breach of duty
C. Criminal negligence
D. Financial irregularities
Select an option to see the answer and solution.