91. An audit which is compulsory by the law is __________.
A. Government Audit
B. Internal Audit
C. Cost Audit
D. Statutory Audit
✅ The correct answer is option D.
Auditing
92. Recording a transaction twice in the books of original entry is an error of __________.
A. principle
B. commission
C. duplication
D. omission
✅ The correct answer is option C.
93. An auditor is held liable under C.A Act 1949 for
A. negligence
B. misfeasance
C. Professional misconduct
D. breach of contract.
✅ 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.
95. An auditor is held criminally liable for
A. Loss to his client
B. Neglect of his duty
C. Offence against statutory provisions
D. Frauds
✅ 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.
97. Civil liability of an auditor implies liability for
A. misappropriation of cash
B. misappropriation of goods
C. fraud
D. misfeasance
✅ The correct answer is option D.
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.
99. ………… means “proving the truth or confirmation”
A. Vouching
B. Verification
C. Inspection
D. Auditing
✅ The correct answer is option B.
100. ……………….. Starts where …………….. Ends
A. Accounting, auditing
B. Auditing, accounting
C. Vouching, auditing
D. Accounting,vouching
✅ The correct answer is option B.