QuestionI

D QuestionText Option1 Option2 Option3 Option4 Right Option

1 Efficiency Audit is also known as---- 1 Performance Audit 2 Special Audit 3 Concurrent Audit 4 Spot Audit Option1
2 Quick discovery of Fraud is possible by---- 1 Cointinuous Audit 2 Special Audit 3 Statutory Audit 4 Efficiency Audit Option1
3 Less importance is given to P & L A/c in------Audit 1 Concurrent 2 Interim 3 Balance Sheet 4 Special Option3
4 For ascertainig Cost of Product,----Audit is useful 1 Cost 2 Spot 3 Management 4 Tax Option1

5 True & Fair Financial includes---- 1 P & L accounts 2 Balance Sheet 3 Window Dressing 4 1 & 2 Option4
2 Watchman of
6 Misappropriation in Goods done by---- 1 Inward Goods Register Godown 3 Purchase Dept 4 None 1 2 3 Option1
2 Understand 3 Discuss with
7 Before Commencing Audit,Auditor should---- 1 Visit Company Internal Control Management 4 All 1 2 3 Option4
3 Incorrect record
8 Weaknesses in Internal may lead to--- 1 Fraud 2 Misappropriation of Accounts 4 All 1 2 3 Option4

9 Dividend Received is verified from--- 1 Counter Foil of D/W 2 Investment Record 3 Letter from Co. 4 Inward Dak Option1
2 Cancel sign of
10 After checking Voucher,Auditor should---- 1 File it Officer 3 Put Audit Stamp 4 2 &3 Option4
11 Verifying Inventory relate to Provisions of---- 1 CARO 2003 2 CARO 2015 3 CARO 2016 4 CARO 2013 Option3
2 Last year Audit
12 Auditor can obtain information from---- 1 Management Report 3 Staff of Company 4 Feed back Option2
2 Management 3 Memorandum of
13 For Issue of Debentures Powers are given in----- 1 Prosoectus Mannual Association 4 Not1 2 3 Option3
14 Audit of Inventory,auditor should also check--- 1 Slow moving Stock 2 Scrap 3 Quantity 4all 1 2 3 Option1
Before declaring Dividend Company should provide for--
15 - 1 Depreciation 2 Tax Liabilities 3 Provisions of Acts 4 All 1 2 3 Option4

2 Show as
16 Disputed Tax Liabilities,Auditor to--- 1 Disclose in Report Contingent Liability 3 Neglect 1 & 2 Option4
2 Clerk in Accounts
17 Vouchers of Postages/Couriers to sign by--- 1 Despatch Clerk Dept 3 Any Clerk 4 Junior Officer Option1
2 Supporting 3 Verify reasons for
18 Long outstanding expenses,Auditor should--- 1 Discuss with Managers Documents delay 4 Neglect Option2
4 Optional of
19 High Telephone Bill are----expenses 1.Deffered 2 Revenue Expenses 3 Capital Company Option2

20 For Bad Debts recovered----is good proof for Audit 1 Bank Statement 2 Correspondance 3 Reciepts isssued 4 Vouchers Option1
2 Minute Book of
21 Entry in----require for appointment of Casual Auditor 1 HR Register Company 3 ROC 4 None 1 2 3 Option2

22 Junior Staff of Auditor should understand--- 1 Vouching 2 Accounting system 3 Depreciation Rates All 1 2 3 Option4
 2 Gives Disclaimer
23 When All books of Accounts are not shown to Auditor,--- 1 Object Report 3 Reject Audit 4 Optinal Option2

3 Good Accounting
24 Clean Audit Report mainly depends on--- 1 True & Fair Position 2 Auditors Fee practices 4 1&3 Option4

25 Auditor should not work ----- 1 Under Pressure 2 With biased mind 3 Integrity 4 1 & 2 Option4
2 Error of 3 Compensating
26 Partial posting of Transaction is----error 1 Error of Ommission Commission Error 4 Duplicatiion error Option1
3 Error of 4 Error of
27 It is difficult to trace out---error 1 Duplication 2 Compensating Ommission Commission Option2
3 Error of
28 Trial Balance is nit affected by--- 1 Compensating Error 2 Duplication Error Commission 4 Error of Ommission Option1
2 Central
29 Permission from---require for removal of Auditor 1 Bank Government 3 SEBI 4 R.B.I. Option2
30 Removed Auditor has right to ----- 1 Get Notice of AGM 2 Heard in AGM 3 Attend AGM 4 All 1 2 3 Option4
31 Effective check on staff is possible in----Audit 1 Management 2 Spot 3 Special 4 Continuous Option4

32 Continuous Audit is good for---- 1 Big Organisations 2 Banking Companies 3 Small Companies 4 1 & 2 Option4
2 Sch VI of Co.Act
33 Debtors outstanding more tha 6 months comply 1 Companies Act 1956 2013 3 ICIA Rules 4 None 1 2 3 Option2
2 Input /Output of
34 Audit of Scrap,Auditor should have knowedge of---- 1 Production System production 3 Place where kept 4 1 & 2 Option4

35 Scrap sale is verified from--- 1 Copy of Delivery Challan 2 Amount Received 3 Nature of Scrap 4 None 1 2 3 Option1
3 Earn Abnormal
36 Window Dressing is done for----- 1 Mislead Investors 2 Hide Losses Commission 4 All 1 2 3 Option4
2 Understand 4 Suggest payment
37 In Audit of Payment,Auditor should---- 1 Refer Files Internal Control 3 Ways of Payment modes Option2
4 Instructions to
38 Audit-----facilitate systematic Audit 1 Pre Discussion 2Audit Programme 3 Pre visit to Client Client Option2

39 Company should ask employee to take leave 1 To rest 2 To do private work 3 To avoide 4 As routine Option3
2 To change the
40 To save from frauds,Company should---- 1 Sanction Leave to Staff working Tables 3 1 & 2 4 Keep good record Option3
2 Details of
41 Bills Receivable Register contain---- 1 Credit Sales transactions 3 Vouchers 41 & 2 Option4
42 Overvaluation of Land,Auditor should---- 1 Neglect 2 not Accept 3 Keep as it is 4 Make Audit Note Option4

43 No Access should be given to-----to books of Accounts 1 Store Keeper 2 Accounts Clerk 3 Despatch Clerk None 1 2 3 Option1

44 Stock in hand should be protected from--- 1 Theft 2 Fire 3 Misappropriation 4 All1 2 3 Option4
45 Debt of Directors,Auditor to------ 1 Verify Outstandings 2 Maximum amount 3 Note to B/S 4 All 1 2 3 Option4
3 Tool Room
46 Statement of Loose Tools,Dies should be signed by---- 1 Clerk 2 Responsible Officer Supervisor 4 Non 1 2 3 Option1
3 Miscelleneous
47 Repairs to Vehicles,Expenses are charged to---- 1 Vehicles 2 P & L A/c Expenses 4 Capital Expenses Option2
2 Credit to Capital 3 Credit to Secret
48 Building sold at profit,Profit should be---- 1 Credit to P & L A/c Reserve Reserve 4 None 1 2 3 Option2
49 Routine payments can be checked from--- 1 Vouchers 2 Entries 3 Cash payment 4 Bank Payment Option1
2 Recorded in 3 Treated as
50 Interest Received should be ------ 1 Of current year Uncome Register Revenue Income 4 All 1 2 3 Option4

51 Interest received on FDR<Auditor to verify 1 TDS certificate from Bank 2 Reason for FDR 3 Income leakage 4 Non 1 2 3 Option1
52 Cash Sales should be entered in--- 1 Cash Memo 2 Credit Note Stock Register 4 Godown Pass Option1
53 Audit of Income include verification of---- 1 Bank Statement Receipt issued 3 Dicuments 4 All 1 2 3 Option4

3 Signature of
54 Cancellation of Voucher is by----- Affixing Rubber stamp 2 File Authorised Officer 4 All 1 & 3 Option4
55 In case of Sale -----Departments involved 1 Store 2 Accounts 3 Sales 4 All 1 2 3 Option4
56 Nature & Amount of fraud is reported under--- 1 CARO 2003 2 CARO 2015 3 CARO 2016 4 CARO 2018 Option3
3 Cinfidentiality of
57 Not hiding any fact by Auditor is------ 1 Skill of Auditor 2 Integrity of Auditor Auditor Objectivity of Auditor Option2
2 Supporting 3 Verify reasons for
58 Long outstanding expenses,Auditor should--- 1 Discuss with Managers Documents delay 4 Neglect Option2

2 Sch VI of
59 Inventory to show in B/s as per---- 1 Companies Act 1956 Companies Act 2013 3 CARO 2003 Non 1 2 3 Option2
60 Petty Cash include-- 1 Notes 2 Stamps 3 Coins 4 All 1 2 3 Option4
61 Bill Discounted but not matured is---Liability 1 Contingent 2 Current 3 Miscelleneous 4 Fixed Option1

62 Creditors in B/S,auditor to verify------- 1 Schedule of Creditors 2 Confirmations 3 Long Outstanding 4 All 1 2 3 Option4
2 Powers of Board of
63 For Secured Loan by the Company,Auditor to check---- 1 Prospectus Directors 3 Disbursement 4 Trust Deed Option2
3 Central
64 For Public Deposits,permission from------required 1 Shareholders 2 SEBI Government 4 Bank Option3

65 While determiningn Sample size,Auditor to consider----- 1 Sampling Risks 2 Tolarable Errors 3 Expected Errors 4 All 1 2 3 Option4
66 should be sent to Debtors periodically 1 Amount Received 2 Amount Due 3 Balance amount 4 All 1 2 3 Option4
2 Preparation of
67 The work relating to pay salaries & wages include---- 1 Attedance Pay Slips 3 Tax deductiins 4 All 1 2 3 Option4
1 Checking Attendance 2 In presence of
68 Payment to dummy person can be checked by---- Record Supervisor 3 Self observations 4 1 & 2 Option4
 3 Having vested
69 C.A. of Company should not be appointed if he is---- 1 Not C.A. Not C A in practice interest in Co. 4 All 1 2 3 Option4
2 Comments on
70 Bank Reconciliation is included in---- 1 Audit Working Papers Audit 3 Not included 4 Audit Report Option1
2 Last year Audit
71 Auditor can obtain information from---- 1 Management Report 3 Staff of Company 4 Feed back Option2
4 Managing Director
72 As per M/A sell of Assets are power of---- 1 Chairman of Company 2 Board of Directors 3 Sales Executives of Co. Option2

2 Auditors duty on 3 Auditors duty on

73 SA 240 relate to----- 1.Auditors duty on Fraud Internal Contols Inventory 4 None 1 2 3 Option1
74 SA 315 relate to---- 1.Audit Procedure 2 Internal Control 3 Inventory 4 Sale of Assets Option2
75 Verifying Inventory relate to Provisions of---- 1 CARO 2003 2 CARO 2015 3 CARO 2016 4 CARO 2013 Option3
76 AAS 5 relate to----- 1. Verification of Assets 2 Audit Sampling 3 Audit Evidences 4 Audit Report Option1
77 Standard deals with asudit Planning is--- 1 AAS 7 2 AAS8 3 AAS9 4 AAS10 Option2
2 Cancel sign of
78 After checking Voucher,Auditor should---- 1 File it Officer 3 Put Audit Stamp 4 2 &3 Option4
79 Equal chance of getting selected in-----sample 1Randum 2 Hapazardous 3 Vouching Systematic Option1
80 To hide abnormal profits----Reserve is created 1 Depreciation 2 Secret 3 Free 4 Capital Option2
Private Limited Public Limited
81 Audit is not compulsory for---- Government Companies Companies Companies Partnership Firms Option4

82 Authorised Business of Partnership is verified from---- Discussion with Partners Self Observations Minute Book Partnership Deed Option4
3 Visit Branches if
83 Statutory Auditor have right of----- General Lien Receive Fees required All 1 2 3 Option4
Accounts for Specific
84 Investigation is examination of Financial Statements Purpose 3 Valuation of Assets None 1 2 3 Option2
85 A Company Auditor should be--- C.A. in Practice C.A. in Service Certified Auditor any one 1 2 3 Option1

86 Interim Audit is done for---- Interim Dividend Sale of Company 3 Half yearly Results All 1 2 3 Option4
Not to Disclose
information to 3 No dependiability
87 The meaning of Confidentiality of Auditor is---- Work Confedentially others on others All 1 2 3 Option2
Discussion with
88 Audit Report is prepared on Basis of---- Audit Evidence Management 3 Observations All 1 2 3 Option4
89 Balance Sheet Audit is-----Term Indian American Austrelian Britain Option2
90 Expenses of Company are divided in to== Capital Expenses Revenue Expenses Routine Expenses 1 & 2 Option4
91 Memorandum of Association is part of----Audit Permanent Current Regular None 1 2 3 Option1
Resolutions of
92 In Audit verification of Clauses of----is important Articles of Association Minute Book Company Agreement s entered Option1
93 Audit Note Book written record of---- Qualities of Audit Quantity Quirries None 1 2 3 Option3

94 Auditor to remove permission from----require ROC Central Government State Government Not require Option2
 95 Audit Planning should be based on---- Applicable Laws Volume of Work Scope of Audit All 1 2 3 Option4
96 Audit Note Book is divided in to----parts 2 3 4 6 Option1
97 Internal Control includes---- Accounting System List of Employees Read M/A & A/A 1 & 3 Option4
Chairman of
98 Audit Papers are property of----- Company Auditor Audit Committee Company Option2
99 There is No specific----for Audit Notebook Aims Validity Time Structure Option4
100 Audit of Investment,Auditor to check---- 1 Brokarage paid Board Resolution Minute Book All 1 2 3 Option4
101 Letter of Engagement specifies----- Aim of Audit Scope of Audit Plan of Audit 4 Time of Audit Option2
Medium Small sazed
102 Test checking is suitable for--- Large Organisations Organisations Organisations All 1 2 3 Option1

103 Audit of Patents involve--- Record in Patent Fregister Fees Paid Legal Life All 1 2 3 Option4

104 Valuation of assets should be---- Overvalued As per Law Undervalued Optional of Company Option2
Good Internal
105 Change of Duties of staff is----- Compolsory Control Good practice Optional of Company Option2
106 Internal Auditor is responsible to--- Statutory Auditor Tax Auditor Management Shareholders Option3
107 The Auditore has to----Internal Control System 1 Evaluate Check Implement Non 1 2 3 Option1

108 SA 530 defines---- Audit Sampling Test checking Costing of product Non 1 2 3 Option1
109 Credit Note must be signed by-- Clerk Authorised Officer Account Clerk Anybody Option2
Receipts for
110 For Big payments ,Auditor to verify Minute Book Correspondence Payments All 1 2 3 Option4
Represent to Tax
111 Refund Order Received from Income Tax should be---- Of current year Deposited in Bank Need corrections authorities Option2
112 Audit of Debtors,Auditor to classify----- More than 6 months Bad Debts 1&2 None 1 2 3 Option3
Proper Accounting
113 CARO 2016 mainly concerned with---- Proper Record of Assets of Assets Physical Verification All 1 2 3 Option4
Add to Current Discuss with
114 Contingent Liabilities for Bills Payble,Auditor should---- Show Note to B/S Liability Neglect Accountant Option1
Neglegence in
recording
115 Error is defined as--- Unintentiona mistake transaction Intentional act Posting error Option1

Banking Regulation
116 Banking Companies Audit done under----- RBI Act 1934 Act 1949 FEMA None 1 2 3 Option2
Semi Givernment
117 In----Audit.Audit Planning is simple Sole Proprietor Trust Small Private Ltd.Co. Company Option1
Audit Committee
118 External Auditor is---- C.A. in Service Outsider C.A. Member Senior Accountant Option2
Writeoff within
119 Goodwill of the company should be---- Depreciated reasonable time Within year 4Not to write off Option2
 NOC fro previous Note of Minute
120 Casual Appointed Auditor to get---- Appointment Letter Auditor Book All 1 2 3 Option4
121 When No books are balanced,Auditor gives Clean Report Qualified Report Adverse No Report Option3
122 Information of Client can be obtained from--- Annual Report Staff Self Observations Competitors Option1
Objective & Scope
123 SA 200 relate to--- Audit Papers of Audit Audit Note Audit Openion Option2
124 Audit Judgement should not be------ Wish of Management Tax Authorities Satisfy Excutives All 1 2 3 Option4

125 For proposed Dividend,approval from---require Shareholders in AGM SEBI Statutory Auditor Optional of Company Option1
126 Removal of Auditor is done by---- Shareholders in AGM Chairman of Co. Board Of Directors Promotors Option1
127 Internal Audit of Company is done by--- Management Appointed C A Bank None 1 2 3 Option1
Managing Director of
128 Audit Report of Company is addressed to---- Chairman of Company Shareholders Loaning Bank Co. Option2
129 Scope of Auditor is decided by Auditor after Terms of Agreement Accounting System Time required All 1 2 3 Option4
130 Audit Note Book is prepared every---- Month Quarter Yearly Half yearly Option3

131 Audit of Furniture includes--- Record Register New Purchasess Correct Depreciation All 1 2 3 Option4
132 In Sales Audit,Auditor to check---- Procedure of Orders Accounting System 1 & 2 None 1 2 3 Option3
133 Goodwill of Company is considered as--- Tangible Asset Intangible Asset Fictitious Asset Current Asset Option2

134 Stock Register is maintained by--- Store Keeper Godown Watchman Accounts Dept Audit Clerk Option1

135 Format of Internal Auditnis---- Tax Act 1961 Companies Act 2013 Not prescribed CARO 2015 Option3
136 Steps taken to obtain Audit Evidence is---- Observations Inspection Vigilence Quirries Option4
137 Bills Payble is ascertained from---- Credit Purchases Bills Accepted BP Register All 1 2 3 Option4
List of Officers in Previous years
138 In Audit Planning,Auditor should obtain----- List of Registers Company Audit Report All 1 2 3 Option4
139 Terms of Engagement of Audior is AAS 26 AAS8 AAS9 AAS10 Option1
Make company
140 The Objects of creation of Reserves is----- Emergencies financially strong Tax payments Non 1 2 3 Option2

Relate to companies
141 Advertising Expenses should be in---- Company.s Name Business Of current year All 1 2 3 Option4
142 Trial Balance of Company is---- Working Paper Newspaper Text Record None 1 2 3 Option1
143 Section------ lays down scope of Audit 225 226 227 228 Option3
144 Auditor should well conversant with ICAI Instructions Company Act CARO provisions All 1 2 3 Option2
145 Chances of Carried over are more in---- Purchases Sales Postages NonE 1 2 3 Option3

146 Auditors Remmunaration should have approval of--- Chairman of Company Shareholders in AGM Audit Committee BOD Option2
147 LFAR of Bank audit is submitted to---- Government RBI SEBI None 1 2 3 Option2

148 Audit of Insurance Companies done under ------Act Companies Act 1956 Insurance Act 1938 GIC Act 1956 IRDA Option2
149 Alteration in Voucher is indication of---- Mistake Fraud Misappropriation All1 2 3 Option4
150 Wrong totals are carried out is----- Tolarable Errors Accepted Errors Casting Error NonE 1 2 3 Option3