Competitive Exams: Commerce MCQs (Practice-Test 31 of 99)

  1. Which one of the following is not a specific duty of an Internal Auditor?

    1. Examination of organizational structure

    2. Assessment of plans and targets

    3. Testing the adequacy of internal, control system

    4. Carrying out investigations, suo moto

  2. What do Testing and Test checking in relation to auditing mean?

    1. To select and examine a representative sample from a large number of similar items

    2. To select and examine total universe from a large number of similar items

    3. To select and examine a representative sample even when discrepancies are found

    4. To select and examine a representative small item from among a small universe

  3. Match List I (System) with List II (Event) and select the correct answer using the codes given below:

    List-I List-II
    1. Procedural Test

    2. Stratified Random Sampling

    3. Substantive Test

    4. Depth Test

    1. Population is divided into two or more than two groups

    2. Verification of procedures and their implementation

    3. Tracing through the system all aspects of a transaction

    4. Obtaining an evidence as to the completeness and accuracy of data

    • A
    • B
    • C
    • D
      • 2
      • 1
      • 4
      • 3
      • 4
      • 3
      • 2
      • 1
      • 2
      • 3
      • 4
      • 1
      • 4
      • 1
      • 2
      • 3
  4. While evaluating the internal control system which one of the following stages is not required?

    1. Ascertaining the system

    2. Evaluating the system

    3. Formulating the internal control schemes

    4. Formulating the inter control questionnaire

  5. Match List I (Function) with List II (Type) and select the correct answer using the codes given below:

    List-I List-II
    1. Audit work is carried on almost simultaneously with the recording of transactions

    2. Auditor starts his work when the final accounts have been prepared

    3. Audit conducted in between two annual audits

    4. Some of the books and records of the whole period or specific period are audited

    1. Balance Sheet Audit

    2. Continuous Audit

    3. Interim Audit

    4. Partial Audit

    • A
    • B
    • C
    • D
      • 2
      • 1
      • 3
      • 4
      • 4
      • 1
      • 3
      • 2
      • 2
      • 3
      • 1
      • 4
      • 4
      • 3
      • 1
      • 2
  6. While auditing, the auditor finds a balance of Rs. 10, 000 in Goodwill account and ascertains that the amount has not been written off for a long period. What may be the course of action for the auditor?

    1. He may advise the concern to write off the goodwill

    2. He may insist the: Concern to write off the goodwill in the same year

    3. He may recommend the concern to write off goodwill over a period of 5 years

    4. He may allow goodwill to appear forever

  7. What does third party confirmation in auditing mean?

    1. Confirmation of balances of sundry debtors or creditors

    2. Confirmation of bank balances

    3. Confirmation of contingent Liabilities

    4. Confirmation of security deposits

  8. Working papers should not record

    1. The audit plan

    2. The nature, timing and extent of audit procedures performed

    3. The conclusions drawn from the evidence obtained

    4. The audit programmes

  9. Which one of the following is not the primary purpose of audit working papers?

    1. Basis for planning an audit

    2. Record of the evidence accumulated and results of the tests

    3. Basis for preparing tax return and filings with SEBI

    4. Data for determining the proper type of audit report

  10. Audit notebook is a

    1. Personal notebook of an auditor

    2. Record of work performed by an auditor

    3. Record of important points and enquiries which an auditor has to refer to his clients

    4. Record of mistakes and errors detected during the course of auditing accounts books

  11. A file which contains rules governing the organization under audit is known as

    1. Current file

    2. Permanent file

    3. Routine file

    4. Precedence file

  12. Which one of the following statements is correct? Civil liability of an auditor implies liability for

    1. misappropriation of cash

    2. misappropriation of goods

    3. fraud

    4. misfeasance

  13. Any organization that employs a multiple command structure but also related support. Mechanisms and an associated Organizational culture and behaviour pattern, is known as

    1. Project organization

    2. Tall structure

    3. Matrix organization

    4. Flat structure

  14. A process of combining a series of tasks into a new, broader job that provides the worker with greater work variety and a greater sense of responsibility is known as

    1. Job enlargement

    2. Job enrichment

    3. Job analysis

    4. Job simplification

  15. The strategic approach to total compensation involved splitting the total compensation. Into three parts as under

    1. Variable pay

    2. Indirect pay

    3. Base pay

    Which of the above components is/are linked to the organization's success?

    Select the correct answer using the codes given below:

    1. 1 only

    2. 1 and 2

    3. 1, 2 and 3

    4. 2 and 3