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: Auditor’s independence is required to maintain
A) Client loyalty
B) Volume
C) Speed
D) Objectivity
✅ Correct Answer: D
Explanation: Objectivity ensures unbiased judgment during the audit process.
Q: Books of original entry are checked during
A) Finalization
B) Statutory audit
C) Filing
D) Vouching
✅ Correct Answer: D
Explanation: Vouching involves checking vouchers and documents to verify transactions.
Q: Report issued when there are material misstatements
A) Balanced report
B) Clean report
C) Adverse report
D) Interim report
✅ Correct Answer: C
Explanation: An adverse report indicates that the financial statements do not represent a true view.
Q: Inspection of physical stock is classified under
A) Confirmation
B) Inquiry
C) Recalculation
D) Observation
✅ Correct Answer: D
Explanation: Observation is used to verify existence and condition of physical inventory.
Q: Frauds detected by audit must be reported to
A) Auditor general
B) Government
C) Management
D) Internal control officer
✅ Correct Answer: C
Explanation: The auditor informs the management about any frauds found during audit.