A. Joint audit
B. Audit to non-profit companies
C. Audit of unlimited companies
D. All of the above
✅ The correct answer is option D.
Auditing MCQs
For the purposes of section 224(IB) the number of partners of a firm which shall be taken into account would be as on the date of _
A. Completion of audit
B. Auditor’s report
C. Acceptance of audit
D. Starting of audit work
✅ The correct answer is option C.
Right to visit branches has been given to the auditor under which section?
A. Section 222(3)
B. Section 228(2)
C. Section 228(4)
D. Section 228(3)
✅ The correct answer is option D.
If a casual vacancy in the office of auditor arises by his resignation it should only be filled by the company in a……..
A. Board meeting
B. Extraordinary general meeting
C. General meeting
D. Annual general meeting
✅ The correct answer is option C.
The client changed method of depreciation from straight line to written down value method. This has been disclosed as a note to the financial statements. It has an immaterial effect on the current financial statements. It is expected, however, that the change will have a significant effect on future periods. Which of the following option should the auditor express?
A. Unqualified opinion
B. Qualified opinion
C. Disclaimer of opinion
D. Adverse opinion
✅ The correct answer is option A.
Which of the following is true about explanatory notes?
A. These are given by the directors of the company
B. These are given to adhere to requirements of section 211.
C. These are given by auditors of the company in auditor’s report
D. All of the above
✅ The correct answer is option B.
The auditor has serious concern about the going concern of the company. It is dependent on company’s obtaining a working capital loan from a bank which has been applied for. Then management of the company has made full disclosure of these facts in the notes to the balance sheet. The auditor is satisfied with the level of disclosure. He should issue_
A. Unqualified opinion
B. Unqualified opinion with reference to notes to the accounts
C. Qualified opinion
D. Disclaimer of opinion
✅ The correct answer is option B.
The inventory consists of about one per cent of all assets. The client has imposed restriction on auditor to prohibit observation of stock take. The auditor cannot apply alternate audit procedures.
A. Unqualified opinion
B. Qualified opinion
C. Disclaimer of opinion
D. Adverse opinion
✅ The correct answer is option C.
Which of the following report not result in qualification of the auditor’s opinion due to a scope limitation?
A. Restrictions the client imposed
B. Reliance on the report of other auditor
C. Inability to obtain sufficient appropriate evidential matter
D. Inadequacy of accounting records
✅ The correct answer is option B.
When restrictions that significantly affect the scope of the audit are imposed by the client, the auditor generally should issue which of the following opinion?
A. Qualified opinion
B. Disclaimer of opinion
C. Adverse opinion
D. Unqualified report with ‘an emphasis of matter’ paragraph;
✅ The correct answer is option A.