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: Internal check system is designed to
A) Prevent fraud
B) Avoid audit
C) Prepare vouchers
D) Increase workload
β
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
β
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
β
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 yearβs working papers
C) Trial balance
D) Payroll records
β
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
β
Correct Answer: D
Explanation: Cut-off checks ensure that transactions are recorded in the correct accounting period.