257. Audit of banks is an example of –
A. Statutory audit
B. Balance sheet audit
C. Concurrent audit
D. All of the above
✅ The correct answer is option D.
Which of the following is not true about opinion on financial statements?
A. The auditor should express an opinion on financial statements.
B. His opinion is no guarantee to future viability of business
C. He is responsible for detection and prevention of frauds and errors in financial statements
D. He should examine whether recognised accounting principle have been consistently
✅ The correct answer is option C.
Lapping is also known as:
A. Teeming and lading
B. Embezzlement
C. Looping
D. Hacking
✅ The correct answer is option A.
The title of AAS2 issued by Council of ICAI is ___
A. Objective and Scope of the Financial Statements
B. Objective and Scope of the Audit of Financial Statements
C. Objective and Scope of Business of an Entity
D. Objective and Scope of Financial Statements Audit
✅ The correct answer is option B.
Concealment of shortage by delaying the recording of cash receipts is known as
A. Embezzlement
B. Misappropriation
C. Lapping
D. None of these
✅ The correct answer is option C.
The main object of an audit is ___
A. Expression of expert opinion
B. Detection and Prevention of fraud and error
C. Both (a) and (b)
D. Depends on the type of audit.
✅ The correct answer is option D.
Auditing is compulsory for
A. Small scale business
B. Partnership firms
C. Joint stock Companies
D. Proprietary Concerns
✅ The correct answer is option C.
Process of verifying the documentary evidences of transactions are known as:
A. Auditing
B. Testing
C. Vouching
D. Verification
✅ The correct answer is option C.
The term ‘Audit’ is derived from a Latin word “audire” which means;
A. To inspect
B. To examine
C. To hear
D. To investigate
✅ The correct answer is option C.
256. Which of the following statements is not true?
A. Management fraud is more difficult to detect than employee fraud
B. Internal control system reduces the possibility of occurrence of employee fraud and management fraud
C. The auditor’s responsibility for detection and prevention of errors and frauds is similar.
D. All statements are correct.
✅ The correct answer is option B.