Unit 2 - Auditing

Which of the following has a broader scope?

• (A) Internal Control.

• (B) Internal Audit.

• (C) Internal Checking.

• (D) None of the above.

An internal auditor is :

• (A) Temporary Employee.

• (B) Permanent Employee.

• (C) Daily Wager.

• (D) None of the above.

A number of checks & controls exercised in a business to ensure its efficient working is known as :

• (A) Internal check.

• (B) Internal control.

• (C) Internal audit.

• (D) Interim check.

Internal check is meant for :

• (A) Prevention of frauds.

• (B) Detection of frauds.

• (C) Helping audit in depth.

• (D) Detection of errors.

Internal auditor is appointed by :

• (A) The management.

• (B) The shareholders.

• (C) The government.

• (D) The statutory body.

Auditing begins where -------- ends.

• (A) Selling.

• (B) Inventory valuation.

• (C) Accounting.

• (D) Purchases.

The work of one clerk is automatically check by another clerk is called :

• (A) Internal control.

• (B) Internal check.

• (C) Internal audit.

• (D) None of the above.

Internal controls and internal check are :

• (A) One and the same.

• (B) Different.

• (C) Internal control includes internal check.

• (D) None of the above.

Audit in depth is synonymous for:

• (A) Complete audit.

• (B) Completed audit.

• (C) Final audit.

• (D) Detailed audit

Balance sheet audit included verification of :

• (A) Assets.

• (B) Liabilities.

• (C) Income & expenditure accounts where appropriate.

• (D) All of the above.