A. Verification of assets & liabilities.
B. Vouching of income & expense accounts related to assets and liabilities.
C. Examination of adjusting and auditing & closing entries.
D. Routine checks.
✅ The correct answer is option D.
Auditing
52. Which of the following is not a fact of EPA ?
A. Economic audit.
B. Efficiency audit.
C. Expenditure audit.
D. Effectiveness audit.
✅ The correct answer is option C.
53. A good audit report must at least meet one of the following qualifications:
A. It should offer constructive and timely suggestions to the management.
B. It should not point out mistakes.
C. It should not be based on factual information.
D. It should not be based on balance sheet.
✅ The correct answer is option A.
54. Auditing begins where ——– ends.
A. Selling.
B. Inventory valuation.
C. Accounting.
D. Purchases.
✅ The correct answer is option C.
55. Internal auditor is appointed by :
A. The management.
B. The shareholders.
C. The government.
D. The statutory body.
✅ The correct answer is option A.
56. Internal check is meant for :
A. Prevention of frauds.
B. Detection of frauds.
C. Helping audit in depth.
D. Detection of errors.
✅ The correct answer is option C.
57. Voucher relates to :
A. Cash receipt.
B. Cash payment.
C. Credit transactions.
D. All the above.
✅ The correct answer is option D.
58. A number of checks & controls exercised in a business to ensure its efficient working is known as :
A. Internal check.
B. Internal control.
C. Internal audit.
D. Interim check.
✅ The correct answer is option A.
59. The first auditor or auditors are appointed by :
A. Central Government.
B. Company Law Board.
C. Board of Directors.
D. Shareholders.
✅ The correct answer is option C.
60. The main object of vouching is :
A. To prepare trial balance.
B. Conduct routine checking.
C. Verify authenticity & authority of transactions.
D. Checking of vouchers
✅ The correct answer is option D.