110. In comparison to the independent auditor, an internal auditor is more likely to be concerned with
A. Cost accounting system
B. Internal control system
C. Legal compliance
D. Accounting system
✅ The correct answer is option B.
112. The independence of an internal auditor will most likely be assured if he reports to the
A. President Finance
B. President System
C. Managing Director
D. CEO
✅ The correct answer is option C.
94. The performance of tests of control is documented in
A. Audit programme
B. Flow charts
C. Working papers
D. Any of the above
✅ The correct answer is option C.
96. A flow chart, made by the auditor, of an entity’s internal control system is a graphic representation that depicts the auditor’s.
A. Understanding of the system
B. Understanding of fraud risk factors
C. Documentation of assessment of control risk
D. Both (a) and (c)
✅ The correct answer is option A.
98. An auditor assesses control risk because it
A. Affects the audit risk
B. Affects the level of detection risk that auditor may accept
C. Helps him to fix materiality level for each financial assertion
D. Is directly related to inherent risk
✅ The correct answer is option B.
74. Verification of the value of assets, liabilities, the balance of reserves, provision and the amount of profit earned or loss suffered a firm is called _________.
A. continuous audit
B. balance sheet audit.
C. interim audit
D. partial audit
✅ The correct answer is option B.
76. Sale of land is a __________.
A. revenue receipt
B. capital receipt
C. capital expenditure
D. revenue expenditure
✅ The correct answer is option B.
77. Purchase of machinery is a ____________.
A. revenue receipt
B. capital receipt
C. capital expenditure
D. revenue expenditure
✅ The correct answer is option C.
80. A Voucher is a _______.
A. Document is support of an entry made in books of accounts
B. Invoice received from suppliers
C. Receipt issued to a customer for cash
D. Dispatch Receipt
✅ The correct answer is option A.
81. A number of checks and controls exercised in a business to ensure its efficient working are known as ________.
A. Internal Check
B. Internal Control
C. Internal Audit
D. Interim Check
✅ The correct answer is option B.