241. Test Checking refers to A. Testing of accounts and records B. Checking of selected number of transactions C. Examination of adjusting and closing entries D. Checking of all transactions recorded ✅ The correct answer is option B.
242. Window dressing implies: A. Curtailment of expenses B. Checking of Wastages C. Under valuation of assets D. Over Valuation of assets ✅ The correct answer is option D.
243. Errors of Omission are A. Technical errors B. Errors of principle C. Compensating errors D. None of the above ✅ The correct answer is option A.
245. Internal check is carried on by A. Staff specially appointed for the purpose B. Internal auditor C. Supervisor of the staff D. Members of the staff ✅ The correct answer is option D.
247. Institute of Chartered Accountants of India was established A. 1956 B. 1949 C. 1956 D. 1948 ✅ The correct answer is option B.
249. Audit in depth is synonymous for A. Complete audit B. Completed audit C. Final audit D. Detailed audit ✅ The correct answer is option D.
212. Which of the following Auditing Assurance Standard deals with Audit Planning? A. AAS7 B. AAS8 C. AAS9 D. AAS3 ✅ The correct answer is option B.
213. What would most effectively describe the risk of incorrect acceptance in terms of substantive audit testing? A. The auditor has ascertained that the balance is materially correct when in actual fact it is not B. The auditor concludes the balance is materially misstated when in actual fact is not C. The auditor has rejected an item from sample which was not supported by documentary evidence D. He applies random sampling on data which is inaccurate and inconsistent ✅ The correct answer is option A.
214. Which of the following affects audit effectiveness? A. Risk of over reliance B. Risk of incorrect rejection C. Risk of incorrect acceptance D. Both (a) and (c) ✅ The correct answer is option D.
215. What would most appropriately describe the risk of incorrect rejection in terms of substantive testing? A. The auditor concludes balance is materially correct when in actual fact it is not B. The auditor concludes that the balance is materially misstated when in actual fact it not C. The auditor has rejected an item for sample which was material D. None of the above ✅ The correct answer is option B.