AUDIT & ASSURANCE (MCQS)

T.Y B.COM 

SEMESTER - 5

MID SEMESTER EXAMINATION

AUDIT & ASSURANCE

MCQS = 2012 - 13

1. Bills payable means acknowledgement of

a) Debts payable

b) Bills receivable

c) Both a and b

d) None of these

2. Continuous audit is suitable for the organization ________

a) Where the final account are to be presented immediately after the close of

financial year

b) Where internal controls are not very effective

c) Where volume of transaction is very large

d) All

3. Installation charges of machinery wrongly debited to repairs and maintenance account this is error of _______

a) Principle

b) Compensating

c) Clerical

d) Duplication

4. Audit programme should be based on knowledge of the client's ______

a) Reputation

b) Profit

c) Net worth

d) Nature of business

5. Secret reserve means

a) Showing better position than actual

b) Showing losses

c) Showing worst position than actual

d) None of these

6. Which of the following is not recorded in audit note book?

a) Audit programme

b) Importance balance

c) Accounting statistics

d) Analysis of transaction and balance

7. Figures may be altered in the account which have already been audited is the disadvantages of

a) Interim audit

b) Partial audit

c) Final audit

d) Balance sheet audit

8. Manipulation of accounts to show better performance of management is

a) Management fraud

b) Secret reserve

c) Employment fraud

d) Window dressing

9. Misappropriating one of the amounts out of two or three identical receipts and

crediting the accounts of first customer by the receipt from second customer. This

process is called

a) Window Dressing

b) Teeming & Lading

c) Compensating error

d) None of these

10. Audit of accounts of Joint Stock Company is compulsory under the ______ Act

a) Income tax act 1961

b) Institute of Chartered Accountant Act, 1949

c) Partnership act 1932

d) Companies act 1956

11. An audit programme is ________

a) The date on which balance sheet to be signed by the auditor

b) The duties to be performed by the auditor

c) A devise to facilitate the audit of computer system

d) Guidance to the audit team as to the work to be performed

12. Assets which continuously decline in their value due to extraction or depletion are called

a) Wasting assets

b) Depreciable assets

c) Fluctuating assets

d) Circulating asset

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