Auditing - Questions and Answers for Competitive Exams | GkSeries

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

• [A] Auditing
• [B] Vouching
• [C] Verification
• [D] Checking

Answer: Option [A]

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

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

Answer: Option [D]

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

• [A] statutory audit.
• [B] final audit.
• [C] management audit.
• [D] government audit.

Answer: Option [D]

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

• [A] internal audit.
• [B] interim audit.
• [C] final audit.
• [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 _________.

• [A] Audit plan.
• [B] Audit note.
• [C] Audit risk.
• [D] Audit programme.

Answer: Option [D]

6. Voucher relates to _________.

• [A] cash receipt.
• [B] cash payment.
• [C] credit transactions.
• [D] all the above.

Answer: Option [D]

7. Internal auditor is appointed by ________.

• [A] the management.
• [B] the shareholders
• [C] the government.
• [D] he statutory body.

Answer: Option [A]

8. Auditing begins where ______ ends.

• [A] Selling
• [B] inventory valuation
• [C] Accounting
• [D] Purchases

Answer: Option [C]

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

• [A] Trusts
• [B] Joint stock companies.
• [C] Proprietorship concern.
• [D] None of the above

Answer: Option [C]

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

• [A] Statutory audit.
• [B] Partial audit.
• [C] Complete audit.
• [D] Continuous audit.

Answer: Option [A]

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

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

Answer: Option [D]

12. Confirmation of the court is necessary for __________.

• [A] increasing the share capital.
• [B] reduction of share capital.
• [C] conversion of shares into stock.
• [D] issue of new shares.

Answer: Option [B]