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NATURE OF AUDITING

Total questions: 6

Worksheet time: 5mins

Name
Class
Date
1.

Auditing is ________ of an organization to ascertain how far the financial statement and non-financial disclosures present a true and fair view of the concern.

a)

systematic and independent examination of book

b)

systematic and independent examination of accounts

c)

systematic and independent examination of statutory records

d)

systematic and independent examination of documents and vouchers

2.

Purpose of audit _______

a)

to detect errors in accounting records

b)

to detect frauds in financial statement

c)

to make correction in accounting records

d)

to check mathematical error

3.

Differentiate an auditing and accounting

a)

Audit is to express a true and fair view of financial statements

b)

Accounting is a process that creates financial statements

c)

Audit concern with examining and evaluate the financial statements

d)

Accounting concern with the analysis of transactions.

4.

Importance of auditing in organization___

a)

Identifying and correcting errors

b)

Fraud prevention

c)

Safeguarding assets

d)

Preparing proper financial reports

5.

Types of auditing are

a)

Financial audit

b)

Compliance audit

c)

Operational audit

6.

Types of auditor____

a)

External auditor

b)

Governmental auditor

c)

Internal auditor

d)

Forensic auditor