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)
31. 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
Answer:- b) Examination of vouchers to check authenticity of records
32. Payment for goods purchased should be vouched with the help of
a) Creditors statement
b) Correspondence with suppliers
c) Cash memos
d) Ledger accounts
Answer:- a) Creditors statement
33. Payment for wages should be vouched with the help of
a) Piece work statement
b) Wage sheets
c) Minute book
d) Bank pass book
Answer:- b) Wage sheets
34. Payment for building purchased should be vouched with the help of
a) Title deed
b) Correspondence with Brokers
c) Building account
d) Cash book
Answer:- a) Title deed
35. Investment should be vouched with the help of
a) Commission book
b) Brokers book
c) Sales deeds
d) Minute book
Answer:- b) Brokers book
36. Receipt from debtors should be vouched with the help of
a) Counterfoil Receipts cash book
b) Suppliers statement
c) Sales Deeds
d) General Ledger
Answer:- a) Counterfoil Receipts cash book
37. Receipt from sale of investment should be vouched with the help of
a) Brokers Budget Notes
b) Brokers Sold Notes
c) Minute Book
d) Inventory of investment
Answer:- b) Brokers Sold Notes
38. Purchases returns should be vouched with the help of
a) Bought Notes
b) Credit Notes
c) Goods inward Book
d) Cash Book
Answer:- b) Credit Notes
39. Verification refers to
a) Examination of journal and ledger
b) Examination of vouchers related to assets
c) Examining the physical existence and valuation of assets
d) Calculation of value of assets
Answer:- c) Examining the physical existence and valuation of assets
40. Object of verification of assets
a) Physical verification of assets
b) Checking value of assets
c) Examining the authority of their acquisition
d) All of the above
Answer:- d) All of the above
