Auditing MCQS Past Papers Questions with Answers in pdf Practice Tests
1.Scope of audit in case of joint stock companies is defined by.
A. Auditor
B. Management
C. Law
D. Shareholders
ANSWER: C
2.Following are the advantages of continues audit except.
A. Interim dividend
B. Auditors-employee friendship
C. Detailed checking
D. Moral Check
ANSWER: B
3.Following are accounting techniques except.
A. Depreciation Rate
B. Interest Rate
C. Verification
D. A & B
ANSWER: C
4.Auditing techniques include.
A. Vouching
B. Verification
C. Valuation
D. All of Above
ANSWER: D
5.The purposes of audit program include.
A. Timetable
B. Controls cost of audit
C. Future references
D. All of Above
ANSWER: D
6.Following are disadvantages of final audit except.
A. Accounts delayed
B. Planned fraud cannot be detected
C. Companies can fulfil their legal requirements
D. Detailed checking is not possible
ANSWER: C
7.Contents of audit program include.
A. Duration
B. Old report
C. Checking book
D. All
ANSWER: D
8.The right, duties & liabilities of a company auditor is defined by.
A. Management
B. Law
C. Both A & B
D. None of Above
ANSWER: B
9.The first auditor is appointed by directors within.
A. 30 Days of incorporation
B. 60 Days of incorporation
C. 90 Days of incorporation
D. None of Above
ANSWER: B
10.Reason of conducting interim audit.
A. Required by Law
B. Specific purpose
C. Both A & B
D. None of above
Answer B
11. Following are the rights of an auditor except
A. Call for information
B. Branch inspection
C. Make company’s policies
D. Access books of accounts
ANSWER: C
12.The status of company auditor is that he is an.
A. Employee of the company
B. Manager of the company
C. Outsider and independent person
D. All of above
ANSWER: C
13.Following persons cannot become auditor of the company.
A. Employee of the company
B. Employee of Director
C. Partner of Director
D. All of Above
ANSWER: D
14.Auditor should be qualified as per.
A. Chartered Accountants Ordinance 1951
B. Chartered Accountants Ordinance 1961
C. Chartered Accountants Ordinance 1971
D. Chartered Accountants Ordinance 1981
ANSWER: B
15.Repair to machinery is considered as addition to machinery.
A. Error of commission
B. Error of omission
C. Error of compensation
D. Error of principle
ANSWER: D
16.Various types of quality audit are.
A. Product
B. Process
C. System management
D. All of above
ANSWER: D
17.When the auditor is an employee of the company audit is called.
A. Internal
B. External
C. Compliance
D. A & B
ANSWER: A
18.The most comprehensive type of audit system is.
A. Quantity
B. Quality
C. Preliminary
D. Sequential
ANSWER: B
19.Each of the three parties involved in an audit success is.
A. Client, auditor, auditeer
B. Client, Auditor, Auditee
C. Client, Moderator, Auditee
D. Client, Auditor, Auditee
ANSWER: D
20.An audit is usually conducted in three steps.
A. Pre examination
B. suitable
C. depth
D. A & B
ANSWER: A
21.Audit is a fact finding process that compares actual results with.
A. Standard and plan
B. Expected Results
C. Premature results
D. Preliminary results
ANSWER: A
22.The ______ is expected to provide the resources to the auditor.
A. Client
B. Internal Auditor
C. External Auditor
D. Auditee
ANSWER: D
23.The auditing standard different from audit procedure is.
A. Audit assumptions
B. Acts to be performed
C. Quality
D. Method of work
ANSWER: B
24.The most difficult type of misstatement to detect fraud is based on.
A. Related party purchases
B. Related party sales
C. restatement of sale
D. omission of sales
ANSWER: D
25.The fundamental objective of the audit of a company is.
A. Protect the interest of the minority shareholder
B. Prevent error and fraud
C. Assess the performance of a company
D. Assess the credibility of the company
ANSWER: D
26.The Concept of stewardship means that company directors.
A. Are responsible for ensuring the law of company
B. Are responsible for ensuring the tax of the company
C. Are responsible for ensuring the assets of the company
D. Report suspected fraud and money laundering
ANSWER: C
27.Why do auditors concentrate their efforts on material items in accounts.
A. Because they are easier to audit
B. Because it reduces the audit time
C. Because the risk to the accounts of their being incorrectly stated
D. Because the directors have asked for it
ANSWER: C
28.Which of the following is not the responsibility of company directors.
A. Reporting to the shareholder
B. Establishment of internal control
C. keeping proper accounting record
D. Information and explanation to the auditor
ANSWER: A
29.International auditing standard are issued by.
A. International accounting standard board
B. Financial accounting standard board
C. International audit assurance board
D. Auditing practice board
ANSWER: C
30.Which one of the following is not a duty of auditor.
A. Duty to report to the company bank
B. Duty to report to the member
C. Duty to sign the audit report
D. Any violation of law
ANSWER: A