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.
32. Verification refers to –
A. Examination of journal & ledger
B. Examination of vouchers related to assets
C. Examining the physical existence & valuation of assets
D. Calculation of valuation of assets
✅ The correct answer is option C.
31. Valuation of fixed assets is based on the concept –
A. Going concern
B. Money measurement
C. Dual aspect
D. Cost concept.
✅ The correct answer is option A.
30. Floating assets are valued at –
A. Cost
B. Market price
C. Cost price or market price whichever is less
D. Cost less than depreciation
✅ The correct answer is option C.