Auditing Basics

The Word audit is derived from the Latin word 'audire' which means

• Active

• Listen

• Think

• Search

Auditing begins where ____ends

• Selling

• Production

• Accounting

• Year

When the auditor is an employee of the organization being audited, the audit is classified as an ____ quality audit

• Internal

• Compliance

• External

• Both A&B

The time required and costs involved in an external audit are much higher as compared to internal audits

• True

• False

3.In case of government company, the auditor is appointed by __________

• Central Government

• State government

• Board of director

4.The auditor prepares the audit report with the help of ________

• Working papers

• Audit note book

• Trial balance

5.An audit programme is a set of ________ which are to be followed for proper execution of audit.

• Rules

• Policies

• Instructions

7.Internal auditor is appointed by ________

• Management

• shareholders

• government

9.Recording a transaction twice in the books of original entry is an error of __________

• Principle

• Commission

• Duplication

5.      When the Chartered Accountact Act of India was made

• a)       1847

• b)      1948

• c)       1949

• d)      1950