Auditing

1.       Auditing is derived from the Latin word

• A)      Audire

• B)      Auditor

• C)      Audre

• D)      Order

2. Auditing refers to

c)       Examination of books of accounts of professional ac

• a)       Preparation and checking of accounts

• b)      Examination of books of accounts only

• c)      Checking of vouchers

•        Examination of books of accounts of professional accountants

3.      Main Object of Audit is

• a)       Detection and Prevention of Errors

• b)      Detection of Frauds

• c)       Detection and Prevention of Errors and Frauds

• d)      To find out whether P/L Account and B/S exhibit true and fair view of state of affairs.  

4.      Auditing is luxury for

• a)       Joint Stock Company

• b)      Partnership Firm

• c)       Small scale concerns

• d)      Government Company

5.      When the Chartered Accountact Act of India was made

• a)       1847

• b)      1948

• c)       1949

• d)      1950

6.        “Auditor  is a watch dog and not a blood hound” decision was given in the case of

• a)       London and General Bank 1895

• b)      Kingston Cotton Mills Ltd 1896

• c)       Irish woolen Company Vs. Tyson and others

• d)      None of these

7.      Subsidiary object of   auditing   is

• a)       Detection of errors

• b)      Prevention of errors

• c)       Detection and prevention of errors and fraud

• d)      All of the Above

8.       Entering capital expenses as revenue  expenses in the books of accounts is

1.     

•        Error of principle

• b)      Error of Commission

• d)      Compensating principle

•        Error of Omission

9.     When there are two or more errors which exactly counter balance each other are termed as

e)       

• a)       Error of principle

• b)      Error of Commission

• c)       Error of Omission

• d)      Compensating Errors

1.0       When incorrect entries are made in the books of accounts either wholly or partially, the error is  ---

2.        

• a)Error of Omission

• b)Error of Commission

• c)Compensating error

• d) Error of Principle