PRACTICAL AUDITING MCQ
Auditing typically refers to financial statement audits or an objective examination and evaluation of a company’s financial statements – usually performed by an external third party. Audits can be performed by internal parties and a government entity, such as the Internal Revenue Service (IRS)
111. Section 633 of the companies Act deals with
a. Liability of auditor
b. Relief to the auditor
c. Punishment to the auditor
Answer:- b. Relief to the auditor
112. Auditor is an ————— of a shareholder
a. Owner
b. Agent
c. Employer
Answer:- b. Agent
113. Cost audit means audit of ————— records
a. Financial
b. Cost
c. Tax
Answer:- b. Cost
114. Financial auditor submits reports to the —————-
a. Shareholder
b. Board of director
c. Employees
Answer:- a. Shareholder
115. Cost auditor submits reports to the —————
a. Share holder
b. Board of directors
c. Employees
Answer:- b. Board of directors
116. ————— audit is forward looking –
a. Financial
b. Cost
c. Tax
Answer:- b. Cost
117. Cost auditor of a company is ———–
a. Chartered Accountant
b. Cost Accountant
c. Tax Accountant
Answer:- b. Cost Accountant
118. Auditor finds that there is change in the method of valuation of stock whether he should
a. Allow it
b. Disallow it
c. Allow it with a note to this effect
Answer:- c. Allow it with a note to this effect
119. Audit under any statute in a country is called ——————
a. Final audit
b. Internal audit
c. Statutory audit
Answer:- c. Statutory audit
120. Books of Accounts are prepared and audited as per the provisions of the —————
a. Income Tax Act,1961
b. Companies Act 1956
c. Chartered Accountants Act 1949
Answer:- b. Companies Act 1956
