A. To detect errors or fraud.
B. To comply with GAAP
C. To gather sufficient appropriate evidence
D. To assess audit risk
✅ The correct answer is option C.
Auditing MCQs
The quantity of audit working papers complied on engagement would most be affected by
A. Management’s integrity
B. Auditor’s experience and professional judgment
C. Auditor’s qualification
D. Control risk
✅ The correct answer is option B.
The working papers which auditor prepares for financial statements audit are: _
A. Evidence for audit conclusions
B. Owned by the client
C. Owned by the auditor
D. Retained in auditor’s office until a change in auditors
✅ The correct answer is option C.
Audit programme is prepared by
A. The auditor
B. The client
C. The audit assistants
D. The auditor and his audit assistants
✅ The correct answer is option D.
Receipts from sale of investments should be vouched with the help of
A. Brokers bought notes
B. Brokers Sold notes
C. Minutes book
D. Inventory of investment
✅ The correct answer is option B.
Purchase returns should be vouched with the help of
A. Bought notes
B. Credit notes
C. Goods inward book
D. Cash book
✅ The correct answer is option B.
Payment for building purchased should be vouched with the help of
A. Title Deed
B. Correspondence with the brokers
C. Building Account
D. Cash book
✅ The correct answer is option A.
The board of directors shall appoint first auditor of a company
A. Within one month of completion of capital subscription state of the company
B. Within one month of the promotion of the company
C. Within one month of the commencement of the business of the company
D. Within one month of incorporation of the company
✅ The correct answer is option D.
Payment for wage should be vouched with the help of
A. Piece Work Statement.
B. Wage sheets
C. Minutes book
D. Bank pass book.
✅ The correct answer is option B.
As per the requirements of section 226(3) and 226(4) a person is disqualified from being appointed as a statutory auditor if he holds
A. Equity shares or debentures of the company
B. Equity shares carrying voting of the company
C. Shares carrying voting rights of the company
D. Security carrying voting rights of the company
✅ The correct answer is option D.