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: Working papers serve as
A) Communication tool
B) Audit evidence
C) Office procedure
D) Legal contracts
✅ Correct Answer: B
Explanation: Working papers provide a record of the audit work performed and conclusions reached.
Q: Control environment refers to
A) Budgeting process
B) Overall attitude toward controls
C) Legal framework
D) Physical safety
✅ Correct Answer: B
Explanation: It includes management’s attitude and actions toward internal controls.
Q: Audit trail assists in
A) Hiding fraud
B) Tracing transactions
C) Recording payments
D) Preparing taxes
✅ Correct Answer: B
Explanation: An audit trail allows tracking of transactions from source to final reporting.
Q: Fraud triangle includes pressure, opportunity, and
A) Knowledge
B) Rationalization
C) Greed
D) Power
✅ Correct Answer: B
Explanation: Rationalization is how individuals justify unethical actions such as fraud.
Q: Audit committee is part of
A) Compliance team
B) Customer relations
C) Board of directors
D) HR department
✅ Correct Answer: C
Explanation: The audit committee oversees financial reporting and audit processes on behalf of the board.