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Auditing - Unit 1

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Auditing means

a)

Detection and prevention of frauds

b)

Detection and prevention of errors

c)

Detection and prevention of errors and frauds

d)

Controlling of accounts

2.

The liability of auditor can be

a)

Only civil

b)

Only criminal

c)

Either civil and criminal

d)

Civil and /or criminal

3.

When computer programme or files can be accessed from terminals, access can be limited to authorized individuals by

a)

appointing a librarian

b)

controlling passwords

c)

appointing EDP auditor

d)

Both (a) and (b)

4.

Audit of banks is an example of

a)

Statutory audit

b)

Balance sheet audit

c)

Concurrent audit

d)

Both (a) and (b)

e)

All of the above

5.

Balance sheet audit includes verification of

a)

Assets

b)

Liabilities

c)

Income and expense accounts where appropriate

d)

All of the above

6.

1.The word 'Audit ' is derived from a Latin word ''audire'' which means ________

a)

To inspect

b)

To examine

c)

To hear

7.

3.In case of government company, the auditor is appointed by __________

a)

Central Government

b)

State government

c)

Board of director

8.

4.The auditor prepares the audit report with the help of ________

a)

Working papers

b)

Audit note book

c)

Trial balance

9.

7.Internal auditor is appointed by ________

a)

Management

b)

shareholders

c)

government

10.

8.Auditing begins where ______ ends

a)

Selling

b)

Inventory valuation

c)

Accounting

11.

9.Recording a transaction twice in the books of original entry is an error of __________

a)

Principle

b)

Commission

c)

Duplication

12.

Asset valuation is done by the ________ himself.

a)

Auditor

b)

Shareholder

c)

Proprietor

d)

Management

13.

Which of the following does not describe the definition of audit?

a)

Examination of various books of account to ensure following correct standards

b)

Physical checking of inventory to ensure all departments following documented system of recording transactions

c)

Evaluating clientele to measure the ability to expand the business

d)

Enhancing the credibility of financial statements

14.

An auditor should act professionally, accurately and in an unbiased manner.

a)

True

b)

False

15.

How are feeling today?

a)

😁

b)

😎

c)

😑

d)

🙁