A. clients reputation
B. clients family
C. clients share capital
D. clients business
✅ The correct answer is option D.
Auditing MCQs
An Audit Programme must be prepared ________________
A. before commencement of an audit
B. after completion of an audit
C. after submission of an audit report
D. during the conduct of an audit
✅ The correct answer is option A.
Goods sold but not recorded in Sales Register is ________________
A. compensating error
B. an error of commission
C. an error of omission
D. none of the above
✅ The correct answer is option C.
________________ Asset, which is not subject to physical verification
A. stock
B. cash
C. furniture
D. debtors
✅ The correct answer is option D.
The Auditor examines Bill of Lading in order to vouch ________________
A. sales within the state
B. all the above
C. sales outside the state
D. sales outside the country
✅ The correct answer is option D.
Telephone charges should be examine on the basis of ________________
A. cash memo
B. telephone bill
C. all the above
D. agreement with telephone department
✅ The correct answer is option B.
________________ is not an error of Commission
A. mathematical error
B. compensating error
C. posting error
D. none of the above
✅ The correct answer is option B.
Stock of goods on consignment should be valued at ________________
A. none of the above
B. invoice price
C. cost of realizable value whichever is lower
D. cost price
✅ The correct answer is option C.
Secret reserves are shown on ________________
A. assets side of balance sheet
B. none of the above
C. liabilities side of balance sheet
D. credit side of trading account
✅ The correct answer is option B.
To select a sample for Audit, the auditor should consider ________________
A. all the above
B. the size of the sample
C. the volume of transactions
D. adequacy of internal control system
✅ The correct answer is option A.