Auditing MCQs
Auditing MCQs cover audits, controls, standards, planning, procedures, risks, and reporting—ideal for ACCA, CA, ICMA, B.Com, MBA, and finance exams, ensuring conceptual clarity and practical application for academic and professional success.
Q: Analytical review helps identify
A) Salary structure
B) Employee issues
C) Unusual fluctuations
D) Software bugs
✅ Correct Answer: C
Explanation: Reviewing financial ratios and trends highlights inconsistencies and anomalies.
Q: Engagement letter outlines
A) Budget structure
B) Tax rebates
C) Relationship clauses
D) Audit objectives and scope
✅ Correct Answer: D
Explanation: It sets out terms of the audit engagement and is signed before audit work begins.
Q: Subsequent events are those that occur
A) After tax filing
B) After balance sheet date
C) After audit closure
D) Before reporting
✅ Correct Answer: B
Explanation: These events influence the financial position and must be disclosed if material.
Q: Ethics in auditing require
A) Experience
B) Past records
C) Speed
D) Integrity and objectivity
✅ Correct Answer: D
Explanation: Ethical behavior is critical for maintaining trust and professionalism in audit.
Q: Materiality depends on
A) Financial size and impact
B) Auditor’s preference
C) Supplier details
D) Owner’s opinion
✅ Correct Answer: A
Explanation: It is judged based on the significance of an item to the overall financial statements.