1. Which of the following is not an audit risk?
-
a :
Inherent Risk
-
b :
Detection Risk
-
c :
Control Risk
-
d :
Omission Risk
Correct Answer: d [Omission Risk ]
2. A Cost Auditor submits his report to
-
a :
Board of Directors
-
b :
Government
-
c :
Shareholders
-
d :
Statutory Auditor
Correct Answer: a [Board of Directors ]
3. Secretarial Audit is covered under Section ____________ of Companies Act, 2013.
-
a :
Section 204
-
b :
Section 148
-
c :
Section 139
-
d :
None of the above
Correct Answer: a [Section 204 ]
4. The purpose of internal audit is to protect the
-
a :
Assets
-
b :
Audit staff
-
c :
Accountant
-
d :
Management
Correct Answer: a [Assets]
5. Proving the truth means vouching of ___________________.
-
a :
Payment
-
b :
Expenses
-
c :
Assets
-
d :
Liabilities
Correct Answer: b [Expenses]
6. Form for maintenance of Cost Records by the Company is ____________________.
-
a :
CRA-1
-
b :
CRA-2
-
c :
CRA-3
-
d :
CRA-4
Correct Answer: a [CRA-1 ]
7. The meetings of Audit committee should be ______________ in a year
Correct Answer: a [4]
8. An audit report is the __________ product of audit.
-
a :
Main
-
b :
Final
-
c :
Semi final
-
d :
None of the above
Correct Answer: b [Final]
9. Authorization for Government Audit.
-
a :
BOD
-
b :
Audit committee
-
c :
CAG
-
d :
None of the above
Correct Answer: c [CAG]
10. Maximum term of Individual Auditor
-
a :
1 term of 5 years
-
b :
2 term of 5 years
-
c :
3 term of 5 years
-
d :
None of the above
Correct Answer: a [ 1 term of 5 years]
11. Audit is conducted to draw overall opinion on _________.
-
a :
Financial Statement
-
b :
Cost Statement
-
c :
Income Statement
-
d :
None of the above
Correct Answer: a [Financial Statement]
12. An auditor is required to retain the books of accounts for how long?
-
a :
1yrs
-
b :
5yrs
-
c :
7 yrs
-
d :
None of the above
Correct Answer: c [7 yrs]
13. SA-700 stands for ________.
-
a :
Audit Planning
-
b :
Joint Auditor
-
c :
Forming an opinion and reporting on Financial Statement
-
d :
None of the above
Correct Answer: c [Forming an opinion and reporting on Financial Statement]
14. CAAT stands for-
-
a :
Cornwall Air Ambulance Trust
-
b :
Children Air Ambulance Trust
-
c :
Center for alternatives to Animal Testing
-
d :
Computer Assisted Auditing Technique
Correct Answer: d [Computer Assisted Auditing Technique]
15. Chartered Accountants have to retain the working papers for-
-
a :
2 yrs
-
b :
3 yrs
-
c :
5 yrs
-
d :
7 yrs
Correct Answer: d [7 yrs]
16. Objective of an Audit is to formulate an overall opinion on
-
a :
Cost Statement
-
b :
Financial Statement
-
c :
Books of Accounts
-
d :
None of these
Correct Answer: b [Financial Statement]
17. The purpose of Internal audit is to detect the error in the;
-
a :
Accounting records
-
b :
Employees records
-
c :
Cash records
-
d :
Bank records
Correct Answer: a [Accounting records]
18. The purpose of internal audit is to determine liabilities of;
-
a :
Employer
-
b :
Employees
-
c :
Accountant
-
d :
External auditor
Correct Answer: b [Employees]
19. The assets protection is possible through
-
a :
Internal Audit
-
b :
Internal Control
-
c :
Internal Check
-
d :
None of the above
Correct Answer: a [Internal Audit]
20. Appointment of auditor for government company is done by
-
a :
BOD
-
b :
Audit committee
-
c :
Managing Director
-
d :
CAG
Correct Answer: d [CAG]
21. Cost Audit can be done by the
-
a :
Employee of the organization
-
b :
Cost Auditor
-
c :
Secretarial Auditor
-
d :
None of the above
Correct Answer: b [Cost Auditor]
22. Form for Secretarial Audit Report is-
-
a :
MR-2
-
b :
MR-3
-
c :
MR-4
-
d :
MR-5
Correct Answer: b [MR-3]
23. Statutory Auditor is appointed by the shareholder in the
-
a :
General Meeting
-
b :
Statutory Meeting
-
c :
EGM
-
d :
Board Meeting
Correct Answer: a [General Meeting]
24. Internal Auditor is appointed by
-
a :
Audit Committee
-
b :
Shareholders in General Meeting
-
c :
Extraordinary General Meeting
-
d :
Board of Directors
Correct Answer: d [Board of Directors]
25. Audit of debenture is covered under section
-
a :
70
-
b :
71
-
c :
72
-
d :
73
Correct Answer: b [71]
