Auditing MCQs

Auditing MCQs cover audits, controls, standards, planning, procedures, risks, and reportingβ€”ideal for ACCA, CA, ICMA, B.Com, MBA, and finance exams, ensuring conceptual clarity and practical application for academic and professional success.

Q: Opinion requiring changes or additional disclosures is
A) Qualified
B) Adverse
C) Disclaimer
D) Clean
βœ… Correct Answer: A
Explanation: A qualified opinion highlights specific concerns or exceptions in the financial report.
Q: Audit covering specific areas or transactions is referred to as
A) Special audit
B) Tax audit
C) Cost audit
D) Management audit
βœ… Correct Answer: A
Explanation: Special audits focus on particular aspects of business operations.
Q: Responsibility for preparing financial statements lies with
A) Management
B) Accountant
C) Shareholder
D) Auditor
βœ… Correct Answer: A
Explanation: Management is responsible for preparing financial statements, while auditors verify them.
Q: Auditor must ensure compliance with
A) Labor laws
B) Tax laws
C) Banking regulations
D) Auditing standards
βœ… Correct Answer: D
Explanation: Adherence to auditing standards ensures uniformity and quality in audit work.
Q: Primary aim of audit is to detect
A) Management goals
B) Business risks
C) Material misstatements
D) Production errors
βœ… Correct Answer: C
Explanation: Audit seeks to ensure accuracy by identifying material misstatements in records.