Audit2 Chp1

Sale of land is a

• Revenue received

• Capital received

• Capital expenses

• Revenue expenses

Special / specific reserve can be created by ________________

• Sole proprietor

• Partnership

• Company

• All of above

Secret reserve can be created by ______________

• Public limited company

• Banking and financial companies

• Private limited company

• Co-operative societies

Vouching of the balances of all incomes and expenses account is known as vouching of ____________

• Personal ledger

• Impersonal ledger

• Personnel ledger

• Impersonnel ledger

When a transaction has not been recorded in the books of account either wholly or partially such errors are called as ____________

• Error of classification

• Error of omission

• Error of amount

• Error of double entry

Verification of the value of assets, liabilities and equities is called

• Continuous audit

• Financial audit

• Interim audit

• Tax audit

The first step of vouching process is

• Selecting a sample of transactions from the ledger

• Examining the documentary evidence related to the selected transactions

• Checking whether the transactions are supported by relevant documentary evidence or not

• Verifying the accuracy and completeness of transaction record

The main object of the audit of the cash book may be ___________

• To verify the assets and liabilities

• To ensure all receipts and payments have been properly recorded

• To confirm the bank balance

• To check internal control system in business

One of the audit procedures to check the issue of share capital of the newly formed company is

• Right issue of shares

• The memorandum and articles

• The share transfer register

• None of the above

Share may be issued

• At par value

• At premium value

• At discount value

• All the above