Who is responsible for the appointment of statutory auditor of a limited company?
A. The Central Government
B. Directors of the company
C. Members of the company
D. None of them
AUDITING MCQS
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To test whether sales have been recorded, the auditor should draw a sample from a file of ?
A. sales invoices
B. bill of loading
C. purchase orders
D. sales orders
Which of the following documents is not relevant for vouching cash sales ?
A. Monthly statements sent to customers
B. Bank statement
C. Daily cash sales summary
D. Salesmen’s summary
Which of the following is true about explanatory notes ?
A. These are given by auditors of the company in auditor’s report
B. These are given by the directors of the company
C. These are given to adhere to requirements of section 211.
D. None of them
Date on auditor’s report should not be ?
A. earlier than the date on which the accounts are approved by the management
B. the data of AGM
C. later than the date on which the accounts are approved in board’s meeting
D. None of them
Auditor of a _____ company does not have right to visit foreign branches of the company ?
A. Manufacturing
B. Nonprofit making
C. Unlimited liability
D. Banking
Branch auditor is appointed by ?
A. Shareholders in general meeting
B. Board of directors in board meeting
C. Shareholders in an annual general meeting
D. None of them
Auditor has a right to ?
A. Obtain information and explanation from the employees and officers
B. Obtain information and explanation
C. Obtain information and explanation necessary for the purpose of audit
D. A and C
Which of the following would you not use as a benchmark for comparison when undertaking analytical procedures ?
A. Budget
B. Other audit clients
C. Previous years
D. Other companies in the same industry
What sort of assurance is provided in a review engagement ?
A. Negative assurance
B. Positive assurance
C. No assurance
D. High level of assurance