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1. Audit program is prepared before the commencement of the audit should be .
A. Rigid
B. Fixed
C. Flexible
D not subject to
review
ANS: D
2. Under CARO 2016 the auditor is not required on.
A. Arrears of preference dividend
B. Preferential allotment of shares to related party
C. Disposal of fixed assets
D. Unsecured loans granted to related party
ANS: A
3. Bills receivable a/c shown in the debit side of the
debtors indicates
A. Bills receivable honoured
B bills receivable
dishonoured
C. Bills receivable endorsed
D. Bills receivable extended
ANS: A
4 the fundamental objectives of the audit of a company is to.
A. Detect and prevent errors and fraud
B. Assess the effectiveness of the company's performance
C. Attest to the credibility of the company accounts
D make assumption about future prospects
ANS: C
5. Opening balance of the Machinery accounts can be
confirmed from.
A. Opening balance of last year audited balance sheet
B. Closing balance of last year audited balance sheet.
C. Opening balance of last year capital ac
D. Closing balance of last year capital account
ANS: A
6. Auditor should verify whether return outwards account
is deducted from.
A. Gross sales
B. Gross purchase
C. Interest
D. Direct Expenses
ANS: B
7. For control of quality the auditor should ensure
A. Job is alloted to a right person
B. Work should be explained
C..work should be supervised
D. Audit plan must be rigid
ANS: D
8 in the absense of a partnership agreement partners will
share profit or losses
A. In the ratio of capital
B. In the ratio of drawing
C in the ratio of salary.
D. In equal ratio
ANS: D
9. Bill receivable account on the nature of
A. Real account
B. Personal
account
C. Nominal account
D. Balance account
ANS: B
11. Occupancy rate will be relevant for audit of..
A. Hotel
B club
C small company'
D. Partnership firm
ANS: A
12. ..deals with quality control for audit work
A SA 220
B SA 200
C. SA 210
D SA 240
ANS: A
13. The reporting format of financial statements for a
sole proprietor is
a. As per companies act
B. As per banking regulating act.
C. As per auditor
D. Not prescribed
ANS: A
14. A company auditor should see that the dividend should
be paid.
A. After charging depreciation
B without charging
depreciation
C. Out of capital profit
D out of
securities premium
ANS: B
15. Premium received in advance is shown in the balance
sheet of insurance company under the lead.
A. Current assets
B current
liability
C. Other assets
D. Misc expenditure
ANS: B
16. Internal auditor.
A. Shareholder
B employee
C. Tax auditor
D. Appointed by government
ANS: A
17. As per schedule III sales are classified as.
A. Revenue from operations
B. Other income
C. Revenue from production
D income from
revenue
ANS: A
18. While checking the balances in current account bank
auditor should
a. Check it fully
B not required to
check
C check on test
basis
D. Check 100% records
ANS: D
19. Rent paid
account in the nature is.
A. Real account
B personal account
C. Nominal account
D balance account
ANS: C
20. Interim dividend of a company may be declared by
A. Shareholder
B board of
directors
C. Sebi
D stock exchanges
ANS: B
21. Outstanding expenses should be verified with the help
of
A cash book
B bank book
C. Journal proper
D. Bills receivable book
ANS: C
23. Banking companies are required to maintain reserve in
cash gold or unencumbered securities it is called
A. Statutory legal ratio
B statutory
capital ratio
C. Statutory liquid ratio
D. Statutory latest ratio
ANS: C
24. Audit evidence
is more reliable when the auditor obtains. ...from difference sources or of a
different nature.
A. Internal evidence
B external
evidence
C. Circumstantial evidence
D. Consistent evidence
ANS: A
25 a good report
must be
.a factual
B unbiased
C. Convincing
D pleasing management
1. Only(ii) (iii) and (iv)
2. Only (i) (ii) nd (iii)
3. Only (i)
4. Only (ii)
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