Auditing - Practice Test | ExamPrepSheets

[#226] During the audit of accounts receivable, an auditor obtains sufficient and appropriate evidence in support of the existence assertion this evidence can be used to support which of the following assertions in respect of sales?

(A) Existence

(B) Cut-off

(C) Occurrence

(D) Completeness

Correct Answer

(C) Occurrence

[#227] Vouching helps the auditors to ascertain whether the entries in the book . . . . . . . . . , this is the basic objective of auditing.

(A) True and fair

(B) Only true

(C) Only fair

(D) None of these

Correct Answer

(A) True and fair

[#228] Which of the following acts do not have any coverage under Secretarial Audit?

(A) The Companies Act, 1956 and the rules made under there

(B) The Securities Contracts (Regulation) Act, 1956 ('SCRA') and the rules made under there

(C) Foreign Exchange Management Act, 1999 and the rules & regulations made under there

(D) Specific Regulation of Securities and Exchange Board of India Act, 1992

Correct Answer

The Companies Act, 1956 and the rules made under there

[#229] The statutory auditor is duty-bound to :

(A) Review the managerial processes and procedures

(B) Prepare the final accounts of the company in accordance with the provisions of the company law

(C) Submit a report to the members of the company

(D) Verify physically the various assets of the company

Correct Answer

(C) Submit a report to the members of the company

[#230] The main object of an audit of accounts of a joint-stock company is

(A) Detection and prevention of errors

(B) Detection and prevention of frauds

(C) Detection and prevention of errors and frauds

(D) To find out whether the balance sheet and profit and loss account are drawn up properly according to the Companies Act, and they represent a trace and fair view of the state of affairs

Correct Answer

(D) To find out whether the balance sheet and profit and loss account are drawn up properly according to the Companies Act, and they represent a trace and fair view of the state of affairs

Auditing - Study Mode

[#226] During the audit of accounts receivable, an auditor obtains sufficient and appropriate evidence in support of the existence assertion this evidence can be used to support which of the following assertions in respect of sales?

Correct Answer

[#227] Vouching helps the auditors to ascertain whether the entries in the book . . . . . . . . . , this is the basic objective of auditing.

Correct Answer

[#228] Which of the following acts do not have any coverage under Secretarial Audit?

Correct Answer

[#229] The statutory auditor is duty-bound to :

Correct Answer

[#230] The main object of an audit of accounts of a joint-stock company is

Correct Answer