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Auditing_SYBCOM

Total questions: 20

Worksheet time: 20mins

Name
Class
Date
1.

Falsification of accounts is undertaken by

a)

Auditors

b)

Clerks

c)

Accountants

d)

Responsible officials

2.

‘Goods sent on approval basis have been recorded as ‘Credit sales’. This is an example of _

a)

Error of principle

b)

Error of commission

c)

Error of omission

d)

Error of duplication

3.

Auditing is compulsory for

a)

Small scale business enterprises

b)

All partnership firms

c)

All joint stock companies

d)

All proprietary concerns

4.

Interim audit refers to

a)

Examination of accounts continuously

b)

Examination of accounts intermittently

c)

Audit work to find out and check interim profits of a company

d)

Carrying on audit for bonus purposes at the end of the year

5.

A continuous audit is specially needed for

a)

Any trading concern

b)

Smaller concerns

c)

Banking companies

d)

Any manufacturing companies

6.

Window dressing is likely to be committed by ______

a)

Employees

b)

Management

c)

Auditor

d)

Accountant

7.

Secret reserve means _____ reserve

a)

Free

b)

Capital

c)

Hidden

d)

Sinking fund

8.

Which of the below is considered as window dressing?

a)

Over valuation of liabilities

b)

Undervaluation of asset

c)

Charging less depreciation

d)

Charging high depreciation

9.

The auditing where the auditor is constantly engaged in checking the accounts during the whole period or on regular intervals is known as ______

a)

Continuous audit

b)

Concurrent audit

c)

Internal audit

d)

Final audit

10.

Which of the following is not an advantage of balance sheet audit?

a)

Less costly

b)

No dislocation of work

c)

No moral check on employees

d)

No alteration in accounts

11.

Audit plan should be based on _______

a)

Profit of client

b)

Client’s business

c)

Net worth of client

d)

Reputation of client

12.

Which of the below is not a part of audit techniques?

a)

Inspection

b)

Observation

c)

Enquiry

d)

Reporting

13.

Which of the following is not a part of current file of working papers?

a)

Audit plan

b)

Audit programme

c)

Management representations

d)

Analysis of significant ratios

14.

Which of the following statement is True?

a)

Ownership of working papers is with client

b)

Continuous audit disturbs the working of an organisation

c)

Audit programme should be rigid

d)

Routine checking saves time

15.

Current audit file relating to audit of a partnership firm will not contain

a)

Audit Plan

b)

Audit Programme 

c)

Partnership Deed 

d)

Letters of confirmation

16.

Audit Programme should be 

a)

Oral

b)

Rigid

c)

Flexible

d)

oral & flexible

17.

Ownership of Audit Working Papers is with 

a)

Auditor

b)

Client

c)

Client & auditor

d)

Accountant

18.

Due to audit programme the work 

a)

becomes mechanical 

b)

gives shelter to inefficient assistants

c)

fixes responsibility

d)

increase profits

19.

Objective of an audit planning is 

a)

identification of potential problems 

b)

inefficient work

c)

deadline work

d)

maximise profits

20.

Which of the following is not an advantage of the preparation of working paper?

a)

To provide a guide for advising another client on similar issues

b)

To provide a basis for review of audit work

c)

To provide a basis for subsequent audits

d)

To ensure audit work is being carried out as per programme