WorksheetsPrinciples of Auditing Intro
Total questions: 25
Worksheet time: 13mins
Audit means to check ____
Employees
Management
Financial Statements
Market
Who can do audit?
Accountant
Manager
Salesman
Auditor
A systematic process of recording financial information of a company is known as Accounting.
True
False
The latin word for audit is
Auditor
Audire
Auditing
None
Audire means
to write
to speak
to hear
None
The rules related to audit started in India during the British empire
True
False
In the initial stage auditing was not ____ for all
compulsory
voluntary
specific
none
In 1956, after the implementation of ____ Act audit for companies was made compulsory
Companies
Income Tax
Consitutional
Labour Laws
In which year Chartered Accountant Act came into effect in India
1857
1949
1961
2011
Audit is an dependent examination of financial statements
True
False
Audit can be done by ____ only in India
Objectives of auditing can be mainly categorised into ...... parts
1
3
6
9
What is not included in the primary objective of auditing?
Accounts are written correctly
Employee moral check
Check P&L shows correct value of profit or loss
Check B/s shows correct value of assets and liabilities
Secondary objective of auditing are
1. Detention and prevention of fraud
2. Detention and prevention of errors
Both 1 and 2
None
Fraud are unintentional activity
True
False
Error =
Mistake
ignorance
carelessness
All of above
How many types of error are there in auditing ?
2
5
10
20
Clerical error means
Arithmetic error
Rules and regulations
wrong posting
None
Which error do not affect the trial balance and is most difficult to find?
Clerical error
Error of omission
Error of comission
Compensating Error
Error of principle is generally due to transactions not recorded as per accounting principles.
True
False
Types of fraud
Misappropriation of cash
Misappropriation of goods
Manipulation of accounts
All of the above
Misapprpriation of cash includes
Cash sales
False purchase
Cash recieved from debtors
All of the above
Teeming and Landing is an example of
Misappropriation of cash
Misappropriation of goods
Manipulation of accounts
All of the above
Manipulation of accounts generally includes
1. showing less profit
2. showing more profit
Both 1 and 2
None
Showing less profit is important to
Pay more tax
Pay less tax
Ge more loan
Get less loan
