A. Verification of assets & liabilities.
B. Vouching of income & expense accounts related to assets and liabilities.
C. Examination of adjusting and auditing & closing entries.
D. Routine checks.
✅ The correct answer is option D.
Auditing MCQs
Which of the following is not a fact of EPA ?
A. Economic audit.
B. Efficiency audit.
C. Expenditure audit.
D. Effectiveness audit.
✅ The correct answer is option C.
Vouching implies –
A. Inspection of receipts
B. Examination of vouchers to check authenticity of records
C. Surprise checking of accounting records
D. Examining the various assets
✅ The correct answer is option B.
Errors of omission are –
A. Technical errors
B. Error of principle
C. Compensating error
D. none of these
✅ The correct answer is option A.
AAS refers to –
A. Audit evidence
B. Audit Planning
C. Risk assessments &Internal control
D. Knowledge of business
✅ The correct answer is option D.
A company auditor should see that the dividend is paid –
A. After charging depreciation
B. Without charging depreciation
C. Out of capital
D. None of the above.
✅ The correct answer is option A.
“Auditor is not valuer.” This statement was stated in –
A. Kingston Cotton Mill Case
B. London & General Bank Case
C. Lee VS Neuchatel Co. LTD Case
D. London Oil Storage Co.LTDCase
✅ The correct answer is option A.
The term Standard Auditing Practices refers –
A. Auditing techniques adopted by auditor for collecting & vouching evidences
B. Test checking
C. Standards of auditing
D. True & fair view
✅ The correct answer is option A.
Interim audit refers to –
A. Examination of accounts continuously
B. Examination of accounts intermittently
C. Audit work to find out & check interim profits of a company
D. Carrying on audit for bonus purposes at the end of year
✅ The correct answer is option C.
Shares issued for consideration other than cash should be vouched with help of –
A. Directors minutes book
B. Shareholders minute’s book
C. Contract with the party concerned
D. Cash book
✅ The correct answer is option C.