A. A partner or the director of the company
B. A person of unsound mind
C. Mr. ‘Y’ who owes Rs.500 to company
D. Mr. ‘Z’ who holds the ‘CA’ Certificate
✅ The correct answer is option D.
41. ___ is documentary evidence by which the accuracy in the books of accounts may be proved.
A. Cheque
B. Receipt
C. Voucher
D. Statement
✅ The correct answer is option C.
39. In comparison to the independent auditor an internal auditor is more likely to be concerned with –
A. Cost accountancy system
B. Internal control system
C. Legal compliance
D. Accounting system
✅ The correct answer is option B.
37. Sale of Rs.50,000 to ‘A’ was entered as a sale to ‘B’. This is an example of –
A. Error of omission
B. Error of commission
C. Compensating error
D. Error of Principle.
✅ The correct answer is option B.
22. The audit program is prepared by –
A. The auditor
B. The client
C. The audit assistants
D. Auditor & his assistants
✅ The correct answer is option D.
20. Interim audit refers to –
A. Examination of accounts continuously
B. Examination of accounts intermittently
C. Audit work to find out & check interim profits of a company
D. Carrying on audit for bonus purposes at the end of year
✅ The correct answer is option C.
17. A company auditor should see that the dividend is paid –
A. After charging depreciation
B. Without charging depreciation
C. Out of capital
D. None of the above.
✅ The correct answer is option A.
15. Errors of omission are –
A. Technical errors
B. Error of principle
C. Compensating error
D. none of these
✅ The correct answer is option A.
14. Vouching implies –
A. Inspection of receipts
B. Examination of vouchers to check authenticity of records
C. Surprise checking of accounting records
D. Examining the various assets
✅ The correct answer is option B.
33. Undervaluation of stock is –
A. Technical error
B. Compensatory error
C. Error of principle
D. none of these
✅ The correct answer is option C.