Auditing MCQs with answers for test preparation. Internal audit MCQs with answers for auditing tests online. Our MCQs cover a wide spectrum of auditing topics, including audit planning, internal audit, introduction to auditing, risk assessment, internal controls, audit evidence, and more. Accounting Mcqs
Term ‘Audit’ is derived from a Latin word “audire” which means ?
A. To investigate
B. To hear
C. To inspect
D. To examineMain object of an audit is?
A. Detection and Prevention of fraud and error
B. . Expression of opinion
C. a and b
D. Depends on the type of audit.An auditor is like a ?
A. Watch dog
B. May both according to situation
C. Blood haunt
D. None of themProcess of verifying the documentary evidences of transactions are known as ?
A. Testing
B. Verification
C. Auditing
D. VouchingAuditing is compulsory for ?
A. Partnership firms
B. Proprietary Concerns
C. Small scale business
D. Joint stock CompaniesConcealment of shortage by delaying the recording of cash receipts is known as ?
A. Misappropriation
B. Lapping
C. Embezzlement
D. None of themFundamental objective of the audit of a company is to ?
A. Attest to the credibility of the company’s accounts
B. Assess the effectiveness of the company’s performance
C. Protect the interests of the minority shareholders
D. Detect and prevent errors and fraudWhy do auditors concentrate their efforts on material items in accounts ?
A. Because the directors have asked for it
B. Because they are easier to audit
C. Because the risk to the accounts of their being incorrectly stated is greater
D. Because it reduces the audit timeHow long is the auditor’s term of office ?
A. Until the financial statements are complete
B. Until the next AGM (Annual General Meeting)
C. Until the audit is complete
D. Until the directors remove themIndependent auditor’s primary responsibility is to?
A. the shareholders
B. the company’s bank
C. the directors
D. the company’s creditors (payables)