A. purchase order
B. goods inward register
C. purchase invoice
D. attendance record of cashier
✅ The correct answer is option D.
Auditing MCQs
The main objective of Window Dressing is ________________
A. increase liability
B. to mislead investors
C. to reduce tax liability
D. to understate profits
✅ The correct answer is option B.
Debtors are valued at ________________
A. realizable value
B. as per articles of association
C. book value
D. decided by the customer
✅ The correct answer is option C.
________________ incorporates both Accounting and Administrative Controls.
A. internal control
B. internal check
C. statutory audit
D. internal audit
✅ The correct answer is option A.
The scope of internal audit is decided by the :
A. Shareholders
B. Management
C. Government
D. Law
✅ The correct answer is option B.
Internal audit is undertaken
A. By independent auditor
B. Statutorily appointed auditor
C. By a person appointed by the management
D. By a government auditor
✅ The correct answer is option C.
Which of the following is not a limitation of audit as per AAS4?
A. Objectivity of auditor’s judgment
B. Selective testing
C. Persuasiveness of evidence
D. Limitations of internal control system.
✅ The correct answer is option A.
As per AAS4, if auditor detects an error then –
A. He should inform the management.
B. He should communicate it to the management if it is material
C. The auditor should ensure financial statements are adjusted for detected errors.
D. Both (b) and (c)
✅ The correct answer is option D.
‘Goods sent on approval basis’ have been recorded as ‘Credit sales’. This is an example of _
A. Error of principle
B. Error of commission
C. Error of omission
D. Error of duplication
✅ The correct answer is option A.
A sale of Rs. 25,000 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.