A. The art of recording the business transactions.
B. An examination of the books of accounts.
C. The act of establishing the accuracy of entries in the books of accounts.
D. none
✅ The correct answer is option C.
Auditing MCQs
The owners of the company are called:
A. Debenture holders.
B. Debtors.
C. Shareholders.
D. None of the above.
✅ The correct answer is option C.
The work of one clerk is automatically check by another clerk is called :
A. Internal control.
B. Internal check.
C. Internal audit.
D. None of the above.
✅ The correct answer is option B.
Balance sheet audit included verification of :
A. Assets.
B. Liabilities.
C. Income & expenditure accounts where appropriate.
D. All of the above.
✅ The correct answer is option D.
Audit in depth is synonymous for:
A. Complete audit.
B. Completed audit.
C. Final audit.
D. Detailed audit.
✅ The correct answer is option D.
Concurrent audit is a part of :
A. Internal check system.
B. Continuous audit.
C. Internal audit system.
D. Final audit.
✅ The correct answer is option C.
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.
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.
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.
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.