( Best 200+ )Practical Auditing MCQ

by Mr. DJ

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)

 PRACTICAL AUDITING MCQ

161. Sales day book is used for recording
a. Credit sales
b. Cash sales
c. All sales

Answer:- a. Credit sales
162. ————— audit is more suitable for small business houses
a. Continuous
b. Annual
c. Partial

Answer:- b. Annual
163. Vouching is an examination of ———– to ascertain the accuracy and authenticity of transactions in the book of accounts
a. Audit files
b. Audit note book
c. Documents

Answer:- c. Documents
164. ————— is a written plan containing details with regard to the conduct of a particular audit
a. Audit Note book
b. Audit programme
c. Audit files

Answer:- b. Audit programme
165. ————— is the verification of books of accounts from Income tax point of view
a. Cost audit
b. Tax audit
c. Management audit

Answer:- b. Tax audit
166. Investigation is conducted
a. Regularly
b. Quarterly
c. As and when required

Answer:- c. As and when required
167. Investigation is required when
a. Fraud is suspected in business
b. On acquisition of running business
c. All of them

Answer:- c. All of them
168. Which among the following is not a right of company auditors
a. Right to access the book accounts
b. Right to seek explanations
c. Right to lies on books of accounts

Answer:- c. Right to lies on books of accounts
169. Test checking is done when there is an effective system of ————–
a. Internal control
b. Internal audit
c. Internal check

Answer:- c. Internal check
170. Test checking means
a. Checking of all transactions
b. Checking of half of the transactions
c. Checking of selected items

Answer:- c. Checking of selected items

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