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MCQs on Cost Audit 1

Total questions: 18

Worksheet time: 10mins

Name
Class
Date
1.

Which one is not the objective of cost audit?

a)

Controls fraud

b)

Would save your organization

c)

constructs vibrant organizational image

d)

Make the human resources effective

2.

Who are most associated with the cost audit?

a)

Investors

b)

Government

c)

Employee

d)

Customers

e)

Stakeholders

3.

What is the first procedure for cost audit?

a)

Risk Assessment

b)

Review and Procedures

c)

Understanding the entity

d)

Finding sufficient Evidence

4.

What is the first procedure for risk based approach to fraud detection?

a)

Fraud risk assessment

b)

Fraud risk factors

c)

Audit procedure

d)

Fraud detection

5.

The Enron scandal was associated with the

a)

American investors

b)

Indian Investors

c)

Australian Investors

d)

Japaneses Investors

6.

Enron scandal was done through

a)

Keeping losses off the balance sheet

b)

Misstatement in the tax calculations

c)

Keeping huge debts off the balance sheet

d)

Showing overstated profits

7.

How Waste Management Scandal came in to existance?

a)

Keeping huge debts off the balance sheet

b)

Showing overstated values of assets in the balance sheet

c)

Keeping their losses off the P&L

d)

Falsely increased the depreciation time length

8.

Worldcom Scandal belongs to

a)

Telecommunication

b)

Information Technology

c)

Automobile sector

d)

Hotel Industry

9.

Right full form of the PWC is

a)

Price Water and Coopers

b)

Price Waterhouse Coopers

c)

Price Waterhouse and Coopers & Lybrand

d)

Price Waterhouse Corporation

10.

Which audit firm was associated with Satyam Scandal

a)

KPMG

b)

PWC

c)

Deloitte

d)

Ernst & Young

11.

Lehman Brothers belongs to

a)

Financial Services Firm

b)

IT firm

c)

Telecommunication

d)

Petroleum

12.

Which is/are the objective of cost audit?

a)

Systematic and accurate verification of the cost accounts and records

b)

Checking of adherence to the objectives of the cost accounting

c)

Both

13.

Process for verifying the cost of manufacture or production of any article is known as

a)

Cost Accounting

b)

Financial Accounting

c)

Financial Audit

d)

Cost Audit

14.

Cost audit is the verification of the correctness of cost accounts and of the adherence to the cost accounting plan.

a)

True

b)

False

15.

Cost audit is the verification of the correctness of cost accounts and of the adherence to the cost accounting plan.

a)

True

b)

False

16.

ICWAI stands for

a)

International Council for Works Accounts Initiatives

b)

Institute of Cost & Works Accounts in India

c)

Indian Council for Cooperative Works Authority

d)

None of these

17.

A systematic examination of cost accounts to verify correctness of cost accounting records.

a)

Financial audit

b)

Management audit

c)

Cost audit

d)

Sociai audit

18.

Which is not the objective of cost audit?

a)

Establish the accuracy of costing data

b)

Verifying the arithmetical accuracy of cost accounting

c)

Give training to the cost accountant

d)

Ensure that cost accounting principles are governed by the management objectives