Auditing - Study Mode

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[#261] If an auditor does something wrongfully in the performance of his duties, resulting in a financial loss to the company, he will be held guilty of :

(A) Negligence

(B) Misfeasance

(C) Criminal act

(D) None of the above

Correct Answer

(A) Negligence

[#262] Concurrent audit is a part of:

(A) Internal check system

(B) Continuous audit

(C) Internal audit system

(D) None of these

Correct Answer

(C) Internal audit system

[#263] Which industries fall under strategic area? 1. Industries related to equipments for safety and power generation. 2. Electricity, road and steel industries. 3. Industries related to railway and mineral products. 4. Health and education related industry. Select the correct answer:

(A) Only 1

(B) Only 2

(C) Both 3 and 4

(D) All of the above

Correct Answer

(B) Only 2

[#264] The audit which is performed by a statutory auditor throughout the year is known as:

(A) Internal audit

(B) Interim audit

(C) Annual audit

(D) Continuous audit

Correct Answer

(D) Continuous audit

[#265] Which of the following statement(s) is/are true? 1. Audit can be done by any person. 2. Auditing is guarantee of 100% correctness. 3. Errors can be detected and prevented from auditing. 4. Auditing is the examination of books and statements.

(A) Both 1 and 2

(B) Both 2 and 3

(C) Both 3 and 4

(D) 1, 2 and 4

Correct Answer

(C) Both 3 and 4