UNIT 1- TEST

Auditing starts where_____________ends.

The main object of an audit is

• Expression of opinion

• Detection and Prevention of fraud and error

• Both (1) and (2)

• Depends on the type of

The term Audit is derived from a Latin word audire which means__________

_____________ is a systematic examniation of the books and records or a business.

• Auditing

• Vouching

• Verification

• checking

Who among the following can be appointed as auditor of a company?

• A partner or a director of a company

• A person of unsound mind

• Mr. who owes Rs.500 to the company

• Mr. Z the holder of C.A certificate

What is the first step of an Auditor to do Audit?

• Collecting Evidence

• Planning

The purpose of an Audit plan is to determine why, How when and by whom the audit will be performed

• True

• False

The scope of Auditing is _____________

• Detection of fraud and errors

• Judging the fair presentation of financial statements

• Reporting on Financial position of Business enterprises

• All the above

Auditing is done to ascertain the accuracy of financial statements provided by the organization

• TRUE

• FALSE

Which of the following is not true about opinion on financial statements

• The auditor should express an opinion on financial

• His opinion is no guarantee to future viability of business

• He is responsible for detection and prevention of frauds and errors in financial statements

• He should examine whether recognised accounting principle have been consistently