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.
Auditing
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.
244. Of the following, which is the least persuasive type of audit evidence?
A. Bank statements obtained from the client
B. Documents obtained by auditor from third parties directly.
C. Carbon copies of sales invoices inspected by the auditor
D. Computations made by the auditor
✅ The correct answer is option C.
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.
246. Goods sold on the basis of ‘sales or return ‘ should
A. Be included in the stock
B. Not be included in the stock
C. Not be checked by auditor
D. None of the above
✅ The correct answer is option A.
247. Institute of Chartered Accountants of India was established
A. 1956
B. 1949
C. 1956
D. 1948
✅ The correct answer is option B.
248. Floating assets are valued at
A. cost
B. Market price
C. Cost or market price whichever is lower
D. Cost less depreciation
✅ The correct answer is option C.
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.
250. ‘Auditor is not a valuer’, was stated in
A. Kingston Cotton Mills case
B. London Oil Storage Co. Case
C. London and General Bank case
D. None of the above
✅ The correct answer is option A.