Auditing MCQ

Below Auditing quiz are Multiple Choice Questions (MCQs) type Quiz. These Auditing MCQ Questions helps you to refresh your Auditing, you can see the correct option by clicking on it. .
  • 1. Vouching of the balances of all incomes and expenses account is known as vouching of _____

    • Personal ledger
    • Impersonal ledger
    • Cash
  • 2. Internal audit is undertaken

    • By independent auditor
    • Statutorily appointed auditor
    • By a person appointed by the management
    • By a government auditor
  • 3. The auditor should state the reasons for his reservations in audit report andshould try to quantify the effect on them. This should be done in case he has expressed _ i) A qualified opinion ii) an unqualified opinion with emphasis of matter paragraph iii) An adverse opinion IV) a disclaimer of opinion

    • i) only
    • i) and (iv) only
    • i), iii) and (iv) only
    • All of the above
  • 4. Which of the following describe the true relationship between auditor, client and external users?

    • A. Management provides capital to external users and auditor is hired to provide report relied upon by users for assurance.
    • B. External users rely on auditor’s report assurance to reduce information risk provided by management
    • C. Auditor ensure report are based on management decision on the economic event to be presented to external users
    • D. Management and auditor provide financial statement to external users
  • 5. Which of the following affects audit effectiveness?

    • Risk of over reliance
    • Risk of incorrect rejection
    • Risk of incorrect acceptance
    • Both (a) and (c)
  • 6. Which of the following statements is not true about continuous audit?

    • It is conducted at regular interval
    • It may be carried out on daily basis
    • It is needed when the organization has a good internal control system
    • It is expensive
  • 7. An auditor assesses control risk because it

    • Affects the audit risk
    • Affects the level of detection risk that auditor may accept
    • Helps him to fix materiality level for each financial assertion
    • Is directly related to inherent risk
  • 8. Errors and frauds already committed can be discovered under the system of ________.

    • internal audit, internal check, internal control
    • external check
    • statutory audit
    • interim audit
  • 9. Purchase returns should be vouched with the help of

    • Bought notes
    • Credit notes
    • Goods inward book
    • Cash book