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NEW AREAS OF AUDITING - TYPES OF AUDIT

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

_____________ audit checks whether companies are maintaining proper cost records

a)

Operational Audit

b)

Cost Audit

c)

Social Audit

d)

Tax Audit

2.

______________ generally covers verification of Job Descriptions, training and development etc.

a)

Human Resource Audit

b)

Cost Audit

c)

Operational Audit

d)

Forecast Audit

3.

_____________ helps to prepare accurate cost reports

a)

Operational audit

b)

cost audit

c)

HR audit

d)

Forensic audit

4.

The audit which evaluates management team is __________

a)

HR Audit

b)

Management Audit

c)

Forecast Audit

d)

Operational Audit

5.

_______________ is a technique for estimating many future aspects of a business

a)

Costing

b)

Accounting

c)

Processing

d)

Forecasting

6.

The management audit helps in ______________

a)

smooth operation of an organization

b)

provides suggestions to the management

c)

Measures How effective are current risk management

d)

Identify weak areas of forecasting system

e)

Promote education, research and development in the techniques of the industry

7.

Tax audit is compulsory for ______________

a)

A person carrying on business if the total sales/ turnover exceeds Rs. 1 lakh during the previous year

b)

A person carrying on profession if the Gross receipts exceeds Rs. 10 lakhs during the previous year

c)

A person carrying on business if the total sales/ turnover exceeds Rs. 1 crore during the previous year

d)

All

8.

_________________ audit is conducted usually for investigation and prosecution of criminal acts such as misappropriation or fraud

a)

Forecast Audit

b)

Forensic audit

c)

Operational Audit

d)

Statutory Audit

9.

__________________ audit is concerned with verification of performance of environment management systems to control pollution and their efficiency to conserve environment

a)

Environment Audit

b)

Social Audit

c)

Energy Audit

d)

Management Audit

10.

______________ auditor cannot be appointed as tax auditor even though capable

a)

Statutory

b)

Internal

c)

Operational

d)

Cost auditor

11.

Cost audit is helpful for fixing up selling price of the product

a)

True

b)

False

12.

HR Audit is compulsory for companies

a)

True

b)

False

13.

Operational audit may suggest opportunities for improvement in operations

a)

True

b)

False

14.

Statutory auditor cannot be appointed as tax auditor

a)

True

b)

False

15.

It is easy to judge the quality of the forecast

a)

TRue

b)

False