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Principles of Auditing Intro

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

Audit means to check ____

a)

Employees

b)

Management

c)

Financial Statements

d)

Market

2.

Who can do audit?

a)

Accountant

b)

Manager

c)

Salesman

d)

Auditor

3.

A systematic process of recording financial information of a company is known as Accounting.

a)

True

b)

False

4.

The latin word for audit is

a)

Auditor

b)

Audire

c)

Auditing

d)

None

5.

Audire means

a)

to write

b)

to speak

c)

to hear

d)

None

6.

The rules related to audit started in India during the British empire

a)

True

b)

False

7.

In the initial stage auditing was not ____ for all

a)

compulsory

b)

voluntary

c)

specific

d)

none

8.

In 1956, after the implementation of ____ Act audit for companies was made compulsory

a)

Companies

b)

Income Tax

c)

Consitutional

d)

Labour Laws

9.

In which year Chartered Accountant Act came into effect in India

a)

1857

b)

1949

c)

1961

d)

2011

10.

Audit is an dependent examination of financial statements

a)

True

b)

False

11.

Audit can be done by ____ only in India

a)

Accountant

b)

B.Com Graduate

c)

Chartered Accountant

d)

Owner of company

12.

Objectives of auditing can be mainly categorised into ...... parts

a)

1

b)

3

c)

6

d)

9

13.

What is not included in the primary objective of auditing?

a)

Accounts are written correctly

b)

Employee moral check

c)

Check P&L shows correct value of profit or loss

d)

Check B/s shows correct value of assets and liabilities

14.

Secondary objective of auditing are

a)

1. Detention and prevention of fraud

b)

2. Detention and prevention of errors

c)

Both 1 and 2

d)

None

15.

Fraud are unintentional activity

a)

True

b)

False

16.

Error =

a)

Mistake

b)

ignorance

c)

carelessness

d)

All of above

17.

How many types of error are there in auditing ?

a)

2

b)

5

c)

10

d)

20

18.

Clerical error means

a)

Arithmetic error

b)

Rules and regulations

c)

wrong posting

d)

None

19.

Which error do not affect the trial balance and is most difficult to find?

a)

Clerical error

b)

Error of omission

c)

Error of comission

d)

Compensating Error

20.

Error of principle is generally due to transactions not recorded as per accounting principles.

a)

True

b)

False

21.

Types of fraud

a)

Misappropriation of cash

b)

Misappropriation of goods

c)

Manipulation of accounts

d)

All of the above

22.

Misapprpriation of cash includes

a)

Cash sales

b)

False purchase

c)

Cash recieved from debtors

d)

All of the above

23.

Teeming and Landing is an example of

a)

Misappropriation of cash

b)

Misappropriation of goods

c)

Manipulation of accounts

d)

All of the above

24.

Manipulation of accounts generally includes

a)

1. showing less profit

b)

2. showing more profit

c)

Both 1 and 2

d)

None

25.

Showing less profit is important to

a)

Pay more tax

b)

Pay less tax

c)

Ge more loan

d)

Get less loan