Auditing - Study Mode

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[#381] Where does balance sheet audit prove to be more efficient?

(A) Where the volume of transactions is very high

(B) Where efficient system of internal control is applied

(C) Where qualified accountants are engaged

(D) All of the above

Correct Answer

(B) Where efficient system of internal control is applied

[#382] Cost audit was started in the following year

(A) 1965

(B) 1968

(C) 1971

(D) 1975

Correct Answer

(A) 1965

[#383] The arrangement under which such a system of work is deposited so that the work of one employee is checked by another employee only in the progress of work is called

(A) Internal audit

(B) Internal control

(C) Own audit

(D) Routine checks

Correct Answer

(B) Internal control

[#384] Which among the following are NOT qualified to be appointed as auditor of a company? (1) An individual who is a Chartered Accountant and holds a Certificate of Practice as per CA Act, 1949 (2) A limited liability partnership firm, which has all partners as Chartered Accountants (3) Officer or employee of a company who is qualified Chartered Accountant degree holder too (4) Any Chartered Accountant whose appointment will result in the person being the auditor of more than 10 companies Choose the most appropriate option:

(A) (1) and (2)

(B) (2), (3) and (4)

(C) (3) and (4)

(D) (1), (2) and (4)

Correct Answer

(B) (2), (3) and (4)

[#385] An auditor should ascertain that a company pays dividends out of:

(A) profits of the current year

(B) undistributed profits of the preceding years

(C) total of A and B

(D) none of the above

Correct Answer

(D) none of the above