PG TRB COMMERCE ( EM ) Study Materials - 11

1.       An auditor is like a

A.      Blood haunt

B.      Watch dog

C.      May both according to situation

D.      None of these

2.       The term ‘Audit’ is derived from a Latin word “audire” which means;

A.      To inspect

B.      To examine

C.      To hear

D.      To investigate

3.       Process of verifying the documentary evidences of transactions are known as:

A.      Auditing

B.      Testing

C.      Vouching

D.      Verification

4.       Auditing is compulsory for

A.      Small scale business

B.      Partnership firms

C.      Joint stock Companies

D.      Proprietary Concerns

5.       The main object of an audit is ___

A.      Expression of expert opinion

B.      Detection and Prevention of fraud and error

C.      Both A and B     

D.      Depends on the type of audit.

6.       Concealment of shortage by delaying the recording of cash receipts is known as

A.      Embezzlement

B.      Misappropriation

C.      Lapping

D.      None of these

7.       The title of AAS2 issued by Council of ICAI is ___

A.      Objective and Scope of the Financial Statements

B.      Objective and Scope of the Audit of Financial

Statements

C.      Objective and Scope of Business of an Entity

D.      Objective and Scope of Financial Statements Audit

8.       Lapping is also known as:

A.      Teeming and lading

B.      Embezzlement

C.      Looping

D.      Hacking

9.       Which of the following is not true about opinion on financial statements?

A.      The auditor should express an opinion on financial

statements.

B.      His opinion is no guarantee to future viability of

business

C.      He is responsible for detection and prevention of frauds and errors in financial statements

D.      He should examine whether recognised accounting principle have been consistently

10.     A sale of Rs. 25,000 to A was entered as a sale to B. This is an example of _

A.      Error of omission

B.      Error of commission

C.      Compensating error

D.      Error of principle

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