Auditing - Practice Test | ExamPrepSheets

[#46] Special audit is necessary for . . . . . . . .

(A) inefficient concern

(B) processing concern

(C) trading concern

(D) manufacturing concern

Correct Answer

(A) inefficient concern

[#47] Knowledge of the entity's business does not help the auditor to:

(A) Reduce inherent risk

(B) Identify problem areas

(C) Evaluate reasonableness of estimates

(D) Evaluate appropriates of GAAP

Correct Answer

(A) Reduce inherent risk

[#48] Under the Companies Act, the Statutory Cost Audit is conducted as per the provisions of

(A) Section 209 (d)

(B) Section 233 (13)

(C) Section 233 (B)

(D) Section 224

Correct Answer

(C) Section 233 (B)

[#49] While vouching wages, auditor should examine whether there is proper segregation of duties. Which of the following activities should not be done by same department?

(A) Maintaining personnel records and approving changing in wages rates

(B) Proposing pay roll summary and disbursement of wages

(C) Making salary statements and filing tax returns

(D) Comparing time clock records with time reports prepared by supervisors and preparing list of workers employed along with the units of production for each one of them

Correct Answer

(B) Proposing pay roll summary and disbursement of wages

[#50] Which statement is not true about Management Audit?

(A) It appraises managerial performance

(B) It is a statutory obligation

(C) It ascertains whether the controls are adequate and effective

(D) It evaluates plans to meet the objectives

Correct Answer

(B) It is a statutory obligation

Auditing - Study Mode

[#46] Special audit is necessary for . . . . . . . .

Correct Answer

[#47] Knowledge of the entity's business does not help the auditor to:

Correct Answer

[#48] Under the Companies Act, the Statutory Cost Audit is conducted as per the provisions of

Correct Answer

[#49] While vouching wages, auditor should examine whether there is proper segregation of duties. Which of the following activities should not be done by same department?

Correct Answer

[#50] Which statement is not true about Management Audit?

Correct Answer