Auditing MCQs - MCQtimes.com

Annual Budget

Cost of the project Rs. 3,00,000. Total net income for five years Rs. 2,20,000. Average rate of return on original investment is:

0.0714

0.147

0.174

None of these

Author: rikazzz Comment

Audit

Internal controls and internal check are ________

one and the same

different

Internal control includes internal check

None of these

Author: rikazzz Comment

Advance Accounting and Auditing

Which of the following eliminates details from the working trial balance classifying and summarizing similar or related items?

Lead Schedules

Control accounts

Supporting schedules

Accounts analysis

Author: rikazzz Comment

Settlement of Audit Objections

A sale of Rs. 50.000 to A was entered as a sale to B. This is an example of:

Error of omission

Error of commission

Compensating error

Error of principle

Author: rikazzz Comment

Audit

Proper segregation of duties reduces the opportunities in which a person would both

establish control and executes them

establish controls and executes them

perpetuate errors and frauds and conceals them

Record the transaction in journal and ledger

Author: rikazzz Comment

Advance Accounting and Auditing

The budge cost allowance for an activity level of 4,000 units is:

Rs.7,200

Rs,14,700

Rs.17,200

Rs.22,200

Author: rikazzz Comment

Advance Accounting and Auditing

Direct material cost plus direct labor cost is called:

Prime cost

Conversion cost

Product cost

All of the above

Author: rikazzz Comment

Scrutiny of Record for Audit Purpose

the balance of cash in often between one to five percent of total assets. Tick the most appropriate statement with regard to verification of cash in context of this

cash in always material as materiality is qualitative concept

no audit of cash is needed when, in auditor’s opinion, cash is immaterial. Materiality is a Relative concept

the cash balance need only be audited if the balance is in overdraft

cash is to be verified if control risk is assessed as high

Author: rikazzz Comment

Settlement of Audit Objections

Which of the following statements is correct:

Lower the sampling risk greater the sample size

Smaller the tolerable error, greater the sample size

Lower the expected error, smaller the sample size

All are correct

Author: rikazzz Comment

Advance Accounting and Auditing

Which of the following assets is not eligible for initial depreciation allowance?

Vehicle for factory labor

Professional books

Vehicle plying for hire

ship

Author: rikazzz Comment