MCQ on Auditing and Corporate Governance Unit-1

Table of Contents

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MCQ on Auditing and Corporate Governance

Set- 1(An introduction)

Here is the MCQ on AUDITING for Commerce Students of all university. Most important for UGC NET Commerce.

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Commerce MCQ

(1) Auditing is derived from the Latin Word

(a) Aodire

(b) Audira

(c) Audire

(d)None of the above

Ans. (c) Audire

(2) Auditing can be defined as

 (a)Recording of data

(b) An independent examination of books of accounts

(c)Collection of data

(d)None of the above

Ans. (b) An independent examination of books of accounts

(3) Auditing is luxury for form of business organisation.

(a)Company

(b)Partnership

(c) Sole proprietorship

(d) None of the above

Ans. (c) Sole proprietorship

(4) Auditing is compulsory for form of business organisation.

(a) Sole trader

(b) Company

(c)Partnership

(d) None of the above

Ans. (b) Company

(5) Auditing begins where ends

(a) Accounting

(b)Management

(c)Recording

(d) None of the above

Ans. Accounting

(6) Auditing is an

(a) art

(b) science

(c) both an art and a science

(d) None of the above

Ans. (c) both an art and a science

 (7)An auditor is like a ………….

(a)Running Dog

(b)Biting Dog

(c)Watch Dog

(d)None of the above

Ans. (c)Watch Dog

(8)Where auditing ends,…… begins there

(a)Investigation

(b)Accounting

(c)Management

(d) None of the above

Ans. (a)Investigation

MCQ on Auditing and Corporate Governance

Set- 2(Classification of Audit)

(1) Periodical Audit is carried on at the……….. Of the financial year

(a) End

(b)Beginning

(c) Middle

(d) None of the above

Ans: (a) End

(2) ‘Final Audit’ is also otherwise known as

(a) Last Audit

(b) Balance sheet audit, periodical audit or annual audit

(c)finishing audit

(d) None of the above

Ans: (b) balance sheet audit, periodical audit or annual audit

(3) Periodical Audit is started after preparing,

(a)trading account

(b) Final accounts

(c) both

(d) None of the above

Ans: (b) Final accounts

(4) Management Audit is….. by nature

(a) Voluntary

(b) Manager

(c)easy

(d) None of the above

Ans: (a) Voluntary

(5) Comptroller and Auditor General (CAG) of India is appointed by………..

(a)PM

(b)Chief Minister

(c) President

(d) None of the above

Ans: (c) President

(6) The audit of Government Offices is done by the auditors appointed by

(a) Comptroller and Auditor General of India

(b) President of india

(c)Supreme court of india

(d) None of the above

Ans: (a) Comptroller and Auditor General of India

(7) When an auditor is an employee of the organisation being audited, the audit is classified as……….. audit

(a) Internal

(b) External

(c) Both

(d) None of the above

Ans: (a) Internal

(8) Joint audit implies

(a) Double audit

(b) Audit by two firms of C.A

(c) Both

(d) None of the above

Ans: (b) Audit by two firms of C.A

(9)………….audit is also known as efficiency audit

(a) Management

(b) interim audit

(c)cost audit

(d) None of the above

Ans: (a) Management

(10)…………….audit is undertaken to check whether the various activities of the organization are carried out efficiency or not.

(a)management audit

(b) Performance audit

(c)final audit

(d) None of the above

Ans: (b) Performance audit

 (11) Which audit is carried on throughout the year?

(a) Continuous audit

(b)periodic audit

(c)general audit

(d) None of the above

Ans: (a) Continuous audit

(12) Which type of audit proves be helpful in declaration of Interim dividend.

(a)general audit

(b)management audit

(c) Continuous Audit

(d) None of the above

Ans. (c) Continuous Audit

(13) Final Audit can also be termed as ?

(a) Annual Audit

(b) Last audit

(c) Financial audit

(d) None of the above

Ans. (a) Annual Audit

(14) Which type of audit is suitable, when there is a strong internal-check system?

(a)annual audit

(b) Periodical Audit

(c)management audit

(d) None of the above

Ans. (b) Periodical Audit

(15) The type of audit, which is carried on at the middle of the year is known as ?

(a) Interim audit

(b) Periodic audit

(c) Annual audit

(d) None of the above

Ans. (a) Interim audit

(16) The type of audit followed by Banking Companies is the

(a) cost audit

(b) Interim audit

(c) Annual Audit

(d) None of the above

Ans. (c) Annual Audit

(17) The audit which examines only a part of the accounts of a business, it is termed as …

(a)part time audit

(b) Partial Audit

(c)full time audit

(d) None of the above

Ans. (b) Partial Audit

(18) The type of audit that refers to enquiry against justification and necessity of expenses is known as ?

(a)cost audit

(b)annual audit

(c) Propriety audit

(d) None of the above

Ans. (c) Propriety audit

(19) Systems audit implies

(a) Enquiring accounting and control system

(b)recording and control

(c)both

(d) None of the above

Ans. (a) Enquiring accounting and control system

(20) The audit which is not a statutory requirement, but conducted at the desire of the owners, is known as?

(a) Private audit

(b) Public audit

(c) Both

(d) None of the above

Ans. (a) Private audit
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