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WorksheetsAUDITING
Total questions: 20
Worksheet time: 28mins
An Auditor can hold the audit of not more than ------- companies
20
15
10
30
Auditing means
Detection and prevention of frauds
Detection and prevention of errors
Detection and prevention of errors and frauds
Controlling of accounts
The liability of auditor can be
Only civil
Only criminal
Either civil and criminal
Civil and /or criminal
The first auditor of a company will hold office
For a period of one year
Till holding of statutory meeting
Till the conclusion of first annual general meeting
Till a new auditor is appointed
The primary purpose of establishing quality control policies and procedures for deciding on client evaluation is to-
ensure adherence to generally accepted auditing standards
acceptance or retention of clients whose management does not lack integrity
ensure audit fees is charged according to the type of audit work assigned
all of the above
Which of the following factors is most important in determining the appropriations of audit
evidence?
The reliability of audit evidence and its relevance in meeting the audit objective
The objectivity and integrity of the auditor
The quantity of audit evidence
The independence of the source of evidence
When is evidential matter, generally, considered sufficient?
When it constitutes entire population
When it is enough to provide a basis for giving reasonable assurance regarding
truthfulness
When it is objective and relevant
When auditor collects and evaluates it independently
Who is responsible for the appointment of statutory auditor of a limited company?
Directors of the company
Members of the company
The Central Government
All of the above
Which of the following sections deal with qualifications of the auditor?
Section 141(1)
Section 104 (1) and section 224 (2)
Section 226 (3) and section 226(4)
Section 224(3) & Sec.224
If a casual vacancy in the office of auditor arises by his resignation it should only be filled
by the company in a
Board meeting
extraordinary general meeting
General meeting
Annual general meeting
Which of the following activities would most likely be performed by EDP department?
Authorising transactions
Parity checks
Distributing output
Correction of transactional errors
Which of the following statement is not distinguishing feature for computer based processing and manual processing?
Errors in a CIS environment are less systemic as compared to errors in manual processing
The potential for human error in the CIS environment is lesser as compared to manual system
In a computer based accounting system, audit trail is in electronic form
Computer processing offers management a variety of analytical tools.
When computer programme or files can be accessed from terminals, access can be limited to authorized individuals by
appointing a librarian
controlling passwords
appointing EDP auditor
Both (a) and (b)
Erroneous data has been detected by computer program controls. It has been excluded from processing and printed separately “Error Report”. Who should most probability by review and follow up on this report?
system, analyst
Data control group
Programmer
Computer operator
Who among the following is eligible to appoint an auditor of Government company?
An individual not passing CA
A chartered accountant whether in practice or not
By C & AG
A chartered accountant in practice
Audit of banks is an example of
Statutory audit
Balance sheet audit
Concurrent audit
Both (a) and (b)
All of the above
Concurrent audit is a part of
Internal check system
Continuous audit
Internal audit system
None of these
In India, balance sheet audit is synonymous to
Annual audit
Continuous audit
Detailed audit
Statutory audit
Audit in depth is synonymous for-
Complete audit
Completed audit
Final audit
Detailed audit
Balance sheet audit includes verification of
Assets
Liabilities
Income and expense accounts where appropriate
All of the above
