Auditing MCQs
Auditing MCQs cover audits, controls, standards, planning, procedures, risks, and reportingβideal 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
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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
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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
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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
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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
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Correct Answer: C
Explanation: Audit seeks to ensure accuracy by identifying material misstatements in records.