Auditing - Questions and Answers for Competitive Exams | GkSeries

1. __________ is a systematic examination of the books and records or a business

1. [A] Auditing
2. [B] Vouching
3. [C] Verification
4. [D] Checking

Answer: Option [A]

2. Which of the following is not a kind of audit?

1. [A] Statutory and private audit.
2. [B] Government and continuous audit.
3. [C] Continuous, final, Interim, Cash, Cost and Management audit.
4. [D] None of these.

Answer: Option [D]

3. Instruction of audit issued by controller and auditor general of India ________.

1. [A] statutory audit.
2. [B] final audit.
3. [C] management audit.
4. [D] government audit.

Answer: Option [D]

4. This kind of audit is conducted generally between two annual audit ______.

1. [A] internal audit.
2. [B] interim audit.
3. [C] final audit.
4. [D] continuous audit.

Answer: Option [B]

5. Before the work of audit is commenced, the auditor plans out the whole of audit work is called _________.

1. [A] Audit plan.
2. [B] Audit note.
3. [C] Audit risk.
4. [D] Audit programme.

Answer: Option [D]

6. Voucher relates to _________.

1. [A] cash receipt.
2. [B] cash payment.
3. [C] credit transactions.
4. [D] all the above.

Answer: Option [D]

7. Internal auditor is appointed by ________.

1. [A] the management.
2. [B] the shareholders
3. [C] the government.
4. [D] he statutory body.

Answer: Option [A]

8. Auditing begins where ______ ends.

1. [A] Selling
2. [B] inventory valuation
3. [C] Accounting
4. [D] Purchases

Answer: Option [C]

9. For which of the following, Audit is optional?

1. [A] Trusts
2. [B] Joint stock companies.
3. [C] Proprietorship concern.
4. [D] None of the above

Answer: Option [C]

10. The audit that is made compulsory under statute is called _________.

1. [A] Statutory audit.
2. [B] Partial audit.
3. [C] Complete audit.
4. [D] Continuous audit.

Answer: Option [A]

11. Who among the following can be appointed as auditor of a company?

1. [A] A partner or a director of the company.
2. [B] A person of unsound mind.
3. [C] Mr. Y who owes Rs. 500 to the company.
4. [D] Mr. Z the holder of C.A certificate.

Answer: Option [D]

12. Confirmation of the court is necessary for __________.

1. [A] increasing the share capital.
2. [B] reduction of share capital.
3. [C] conversion of shares into stock.
4. [D] issue of new shares.

Answer: Option [B]