A. Cost accounting system
B. Internal control system
C. Legal compliance
D. Accounting system
✅ The correct answer is option B.
Auditing MCQs
__________ is a systematic examination of the books and records or a business.
A. Auditing
B. Vouching
C. Verification
D. Checking
✅ The correct answer is option A.
The independence of an internal auditor will most likely be assured if he reports to the
A. President Finance
B. President System
C. Managing Director
D. CEO
✅ The correct answer is option C.
A sale of Rs. 50000 to Mr. A was entered as a sale to Mr. B. This is an example of what?
A. Error of omission
B. Error of commission
C. Compensating error
D. Error of principle
✅ The correct answer is option B.
Verification of the value of assets, liabilities, the balance of reserves, provision and the amount of profit earned or loss suffered a firm is called _________.
A. continuous audit
B. balance sheet audit.
C. interim audit
D. partial audit
✅ The correct answer is option B.
When a transaction has not been recorded in the books of account either wholly or partially such errors are called as _________.
A. errors of commission
B. errors of omission
C. compensating error
D. error of principle
✅ The correct answer is option B.
Sale of land is a __________.
A. revenue receipt
B. capital receipt
C. capital expenditure
D. revenue expenditure
✅ The correct answer is option B.
Purchase of machinery is a ____________.
A. revenue receipt
B. capital receipt
C. capital expenditure
D. revenue expenditure
✅ The correct answer is option C.
Internal check is meant for ___________.
A. Prevention of frauds
B. Detection of frauds
C. Helping audit is depth
D. Detection of errors
✅ The correct answer is option A.
Voucher relates to _________.
A. Cash receipt & payments, credit transactions
B. Cash payment only
C. Credit transactions only
D. Cash receipt only
✅ The correct answer is option A.