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Cost & Management Audit MCQs 3

Total questions: 30

Worksheet time: 38mins

Name
Class
Date
1.

Cost audit, as mentioned u/s 148(2), shall be carried by Cost Accountant who shall be appointed by Board of Directors of the company within___________ days from commencement of every Financial Year.

a)

90 Days

b)

150 Days

c)

180 Days

d)

190 Days

2.

Cost accountant term is defined under Rule__________ of the rules which means a cost accountant in practice.

a)

2(a) & 2(e)

b)

2(a) & 2(d)

c)

2(b) & 2(c)

d)

2(b) & 2(a)

3.

Cost accountant in practice means a cost accountant u/s 2(1)(b) of the

a)

Charted Accountant Act 1969

b)

Cost and works accountant act, 1959

c)

Cost Accounting Act 1955

d)

Indian Audit Act 1979

4.

Cost Accountant in practice includes

a)

An individual

b)

A firm

c)

Limited Liability Partnership

d)

A,B only

e)

A,B and C

5.

In appointment of cost auditor, prior consent and certificate to be obtained from

a)

Cost Auditor

b)

Cost Accountant in Practice

c)

Cost Accountant

d)

Board of Directors

6.

Cost auditor may be removed from his office before the expiry of his term through a

a)

will of auditor

b)

Decisions of shareholders

c)

board resolution

d)

Director's advice

7.

Auditor may also resign from his office before the expiry of his term

a)

True

b)

False

8.

If any causal vacancy arises in office of a cost auditor whether due to resignation or death or removal, then it shall be filled by the Board of directors within________days of such vacancy.

a)

90

b)

30

c)

15

d)

45

9.

Auditor has a right of access at all times to the books of accounts and vouchers of the company, whether kept at the head office of the company or elsewhere.

a)

True

b)

False

c)

It depends

10.

Auditor has given a right to require and receive from the officers of the company such information and explanations as he may think necessary for the successful performance of his duties as a cost auditor of a company.

a)

True

b)

False

c)

Only in certain situations

11.

A right is given to cost auditor to visit branch offices and factories of a company, and to receive proper returns therefrom as may be necessary for the conduct of his cost audit.

a)

True

b)

False

c)

Only in Certain situations

12.

A right is given to receive such cost accounting records, cost statements and other books and papers as would be necessary for cost audit within 90 days of the financial year of the company.

a)

True

b)

False

13.

A cost auditor can seek and enjoy assistance and facilities from the company so that he can successfully complete his audit.

a)

True

b)

False

14.

Auditor has right to receive remuneration from the company for his function as a cost auditor.

a)

True

b)

False

15.

An auditor can attend a AGM also as per his rights.

a)

Yes

b)

No

c)

Sometimes

16.

Having technical and legal advice whenever necessary in connection with auditor's work of cost audit.

a)

is good option

b)

is a right

c)

is a advice

d)

is a request

17.

Signing and sending a report of audit to company and central government is a task of

a)

Company itself

b)

Cost Accountant

c)

Cost Auditors

d)

Directors

18.

Auditors should submit their Cost Audit Report to the Central Government within _________ days from the end of the company’s financial year to which such report relates, and a copy of the said report to the company.

a)

90

b)

120

c)

150

d)

180

19.

According to you what should be included in audit report?

4 lines
20.

Which is not true for contents in audit report?

a)

He has obtained all the information and explanations relating to the cost accounts which to the best of his knowledge and belief were necessary for the purposes of the cost audit.

b)

Proper cost accounting records as required under the relevant Cost Accounting (Records) Rules have been kept by the company.

c)

He should also qualify his report to the extent it differs, where he is not satisfied with any of the provisions stated above.

d)

He has clearly stated his all the expenditures during the audit and will include in its remuneration.

21.

A professional accountant should be straightforward and honest in all professional and business relationships. it is known as

a)

Integrity

b)

Honesty

c)

Hard Working

d)

Confidence

22.

A professional accountant should not allow bias, conflict of interest or undue influence of others to override professional or business judgments. It is known as

a)

Integity

b)

Objectivity

c)

Competent

d)

Honesty

23.

A professional accountant has a continuing duty to maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service based on current developments in practice, legislation, and techniques. It is known as

a)

Integity

b)

Objectivity

c)

Professional Competence and Due Care

d)

Up gradation

24.

Information acquired as a result of professional and business relationships should not be used for the personal advantage of the professional accountant or third parties. It is known as

a)

Integrity

b)

Objectivity

c)

Confidentiality

d)

Professional Competence

25.

A accountant should comply with relevant laws and regulations and should avoid any action that discredits the profession. It is known as

a)

Honesty

b)

Knowledge

c)

Up gradation

d)

Professional Behavior

26.

How many schedules are there to included professional misconduct?

a)

1

b)

2

c)

3

d)

4

27.

Pays or agrees to pay/accepts or agrees to accept any share, commission or brokerage or profits of his professional business to any person other than a person in his Partnership is aceeptable.

a)

True

b)

False

c)

It depends

28.

Which of these allowed in auditing services.

a)

Share / Accepts Profits

b)

Partnership with an unqualified person

c)

Secures work through another person

d)

Solicits work by advertising

e)

Receiving a remuneration as a right

29.

Which is/are a professional ethic/s in all these

a)

Advertises his attainments

b)

Accepts Commission

c)

Sharing of fees

d)

Working confidentially

30.

Disclosing information provided by the client to a person other than a client without his/her consent is known as

a)

Breach of contract

b)

Breach of competency

c)

Breach of confidentiality

d)

Breach of integrity