Auditing - Study Mode

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[#286] The cost auditor submits the report to the

(A) Shareholders

(B) Board of directors

(C) Employees

(D) Creditors

Correct Answer

(B) Board of directors

[#287] Consider the following activities 1. Valuation 2. Verification 3. Vouching The correct sequence of the activities undertaken by an auditor is

(A) 3, 1, 2

(B) 3, 2, 1

(C) 2, 3, 1

(D) 1, 2, 3

Correct Answer

(B) 3, 2, 1

[#288] Which of the following statements is not true?

(A) Management fraud is difficult to detect than employee fraud

(B) An internal control system reduces the possibility of occurrence of employee fraud and management fraud

(C) The auditor's responsibility for the detection and prevention of errors and fraud is similar

(D) None of the above

(E) Valuation of assets is the responsibility of the management

(F) The auditor can rely on a certificate issued by an authorized valuationer as to the valuation of assets in the balance sheet

(G) The auditor should value the asset as per generally accepted accounting principle

(H) Valuation is no part of auditor's duty

Correct Answer

(B) An internal control system reduces the possibility of occurrence of employee fraud and management fraud
(G) The auditor should value the asset as per generally accepted accounting principle

[#289] Management audit is done by

(A) Chartered Accountant

(B) Company Secretary

(C) Manager

(D) Any Qualified Person

Correct Answer

(D) Any Qualified Person

[#290] The objective(s) of vouching is/are

(A) No knowledge of entire business transactions

(B) Authorisation of transactions

(C) Partial knowledge of the transactions unrelated to business

(D) All of the above

Correct Answer

(B) Authorisation of transactions