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.
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.
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.
18. “Auditor is not valuer.” This statement was stated in –
A. Kingston Cotton Mill Case
B. London & General Bank Case
C. Lee VS Neuchatel Co. LTD Case
D. London Oil Storage Co.LTDCase
✅ The correct answer is option A.
6. Valuation is the basis of :
A. Verification.
B. Marketing.
C. Internal checking.
D. Vouching.
✅ The correct answer is option A.
7. Which of the following is not a duty of an auditor?
A. Duty to report company’s banker
B. Duty to report to the members
C. Duty to sign the audit report
D. Duty to report on any violation of law
✅ The correct answer is option A.
8. Internal Auditing Standards are issued by the –
A. International Accounting Standard Board
B. Financial Accounting Standard Board
C. International Audit & Assurance Standard Board
D. Auditing Practices Board
✅ The correct answer is option C.
9. Cost Audit under Section 233(B) of The Company Act is _____
A. Voluntary
B. Compulsory
C. Advisable.
D. Avoidable
✅ The correct answer is option C.
10. Auditor of a _____ company does not have right to visit foreign branches of company.
A. Unlimited Company
B. Manufacturing Company
C. Banking Company
D. Non-Profit making company
✅ The correct answer is option B.
3. The panel of Auditors of cooperative society is maintained by –
A. Charted Accountant
B. Central Government
C. Registrar
D. Shareholders
✅ The correct answer is option C.