🔍Auditing MCQs
Auditing MCQs
122 MCQs1
____________ is a systematic examination of the books and records or a business?
AAuditing
BVouching
CVerification
DChecking
2
Why do auditors concentrate their efforts on material items in accounts?
ABecause they are easier to audit
BBecause it reduces the audit time
CBecause the risk to the accounts of their being incorrectly stated is greater
DBecause the directors have asked for it
3
The concept of stewardship means that a company’s directors________________?
AAre responsible for ensuring that the company complies with the law
BAre responsible for ensuring that the company pays its tax by the due date
CSafeguard the company’s assets and manage them on behalf of the shareholders
DReport suspected fraud and money laundering to the authorities
4
The fundamental objective of the audit of a company is to_____________?
AProtect the interests of the minority shareholders
BDetect and prevent errors and fraud
CAssess the effectiveness of the company’s performance
DAttest to the credibility of the company’s accounts
5
Concealment of shortage by delaying the recording of cash receipts is known as_____________?
AEmbezzlement
BMisappropriation
CLapping
DNone of these
6
Auditing is compulsory for____________?
ASmall scale business
BPartnership firms
CJoint stock Companies
DProprietary Concerns
7
Process of verifying the documentary evidences of transactions are known as___________?
AAuditing
BTesting
CVouching
DVerification
8
An auditor is like a_______________?
ABlood haunt
BWatch dog
CMay both according to situation
DNone of these
9
The main object of an audit is _____________?
Aand (
BD. Depends on the type of audit.
CBoth (
10
The term ‘Audit’ is derived from a Latin word “audire” which means___________?
ATo inspect
BTo examine
CTo hear
DTo investigate