1221. 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.
SSC
1222. 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.
1223. 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.
1224. 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.
1225. ___ is documentary evidence by which the accuracy in the books of accounts may be proved.
A. Cheque
B. Receipt
C. Voucher
D. Statement
✅ The correct answer is option C.
1226. A company auditor can be removed by :
A. Board of directors.
B. Managing director.
C. Any director.
D. General Meeting.
✅ The correct answer is option D.
1227. Who among the following can be appointed as the auditor of company?
A. A partner or the director of the company
B. A person of unsound mind
C. Mr. ‘Y’ who owes Rs.500 to company
D. Mr. ‘Z’ who holds the ‘CA’ Certificate
✅ The correct answer is option D.
1228. Auditors of a joint stock company are appointed by :
A. Directors of the company.
B. Annual general meeting.
C. Election at the annual general meeting.
D. Debenture holders.
✅ The correct answer is option C.
1229. The company’s auditor is expected to give:
A. His expert opinion about the accounts.
B. A factual position about the accounts.
C. A critical review of the accounts.
D. Financial assistance.
✅ The correct answer is option B.
1230. An internal auditor is :
A. Temporary Employee.
B. Permanent Employee.
C. Daily Wager.
D. None of the above.
✅ The correct answer is option B.