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UNIT 1- TEST

Total questions: 10

Worksheet time: 2mins

Name
Class
Date
1.

Auditing starts where (a)   ends.

2.

The main object of an audit is

a)

Expression of opinion

b)

Detection and Prevention of fraud and error

c)

Both (1) and (2)

d)

Depends on the type of

3.

The term Audit is derived from a Latin word audire which means (a)  

4.

_____________ is a systematic examniation of the books and records or a business.

a)

Auditing

b)

Vouching

c)

Verification

d)

checking

5.

Who among the following can be appointed as auditor of a company?

a)

A partner or a director of a company

b)

A person of unsound mind

c)

Mr. who owes Rs.500 to the company

d)

Mr. Z the holder of C.A certificate

6.

What is the first step of an Auditor to do Audit?

a)

Collecting Evidence

b)

Planning

7.

The purpose of an Audit plan is to determine why, How when and by whom the audit will be performed

a)

True

b)

False

8.

The scope of Auditing is _____________

a)

Detection of fraud and errors

b)

Judging the fair presentation of financial statements

c)

Reporting on Financial position of Business enterprises

d)

All the above

9.

Auditing is done to ascertain the accuracy of financial statements provided by the organization

a)

TRUE

b)

FALSE

10.

Which of the following is not true about opinion on financial statements

a)

The auditor should express an opinion on financial

b)

His opinion is no guarantee to future viability of business

c)

He is responsible for detection and prevention of frauds and errors in financial statements

d)

He should examine whether recognised accounting principle have been consistently