31. Valuation of fixed assets is based on the concept –
A. Going concern
B. Money measurement
C. Dual aspect
D. Cost concept.
✅ The correct answer is option A.
Auditing
32. Verification refers to –
A. Examination of journal & ledger
B. Examination of vouchers related to assets
C. Examining the physical existence & valuation of assets
D. Calculation of valuation of assets
✅ The correct answer is option C.
33. Undervaluation of stock is –
A. Technical error
B. Compensatory error
C. Error of principle
D. none of these
✅ The correct answer is option C.
34. Balance sheet audit included verification of :
A. Assets.
B. Liabilities.
C. Income & expenditure accounts where appropriate.
D. All of the above.
✅ The correct answer is option D.
35. Audit in depth is synonymous for:
A. Complete audit.
B. Completed audit.
C. Final audit.
D. Detailed audit.
✅ The correct answer is option D.
36. Concurrent audit is a part of :
A. Internal check system.
B. Continuous audit.
C. Internal audit system.
D. Final audit.
✅ The correct answer is option C.
37. Sale of Rs.50,000 to ‘A’ was entered as a sale to ‘B’. This is an example of –
A. Error of omission
B. Error of commission
C. Compensating error
D. Error of Principle.
✅ The correct answer is option B.
38. Audit in depth means :
A. Audit of each and every item.
B. Intensive audit of each and every item.
C. Intensive audit of few items.
D. Audit of a few selected items.
✅ The correct answer is option B.
39. In comparison to the independent auditor an internal auditor is more likely to be concerned with –
A. Cost accountancy system
B. Internal control system
C. Legal compliance
D. Accounting system
✅ The correct answer is option B.
40. A vacancy caused by resignation of an auditor is filled by :
A. Board of directors.
B. Managing director.
C. General meeting.
D. Central government.
✅ The correct answer is option C.