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: Internal check system is designed to
A) Prevent fraud
B) Avoid audit
C) Prepare vouchers
D) Increase workload
βœ… Correct Answer: A
Explanation: Internal checks help detect and prevent errors and fraud through systemized procedures.
Q: Re-performance is used to
A) Check hiring process
B) Improve cash flow
C) Verify calculations
D) Draft reports
βœ… Correct Answer: C
Explanation: It involves independently redoing calculations or procedures to confirm accuracy.
Q: Scope of audit defines the
A) Level of accuracy
B) Number of accountants
C) Budget limit
D) Boundaries and coverage
βœ… Correct Answer: D
Explanation: The scope outlines the extent and limits of the audit process.
Q: Permanent audit file includes
A) Purchase orders
B) Previous year’s working papers
C) Trial balance
D) Payroll records
βœ… Correct Answer: B
Explanation: The permanent file holds documents useful for future audits, like organizational charts and past reports.
Q: Cut-off procedures ensure
A) Sales are increased
B) Books are closed
C) Discounts are given
D) Correct period recognition
βœ… Correct Answer: D
Explanation: Cut-off checks ensure that transactions are recorded in the correct accounting period.