KANPUR INSTITUTE OF HIGHER EDUCATION, KANPUR
EXAM: Pre-university PROGRAM : BBA Roll No :
SUBJECT CODE :F010602T-A BRANCH : SECTION :A
SUBJECT NAME : AUDITING SEMESTER : VI FACULTY NAME : NISHA NANCY DANIEL
Time:45 Minutes Total Marks: 100
Note: 1. Attempt All. If require any missing data; then choose suitably.
2. Multiple Choice Questions. Each question carries 2.5 marks 2.5 x 40= 100
1. Test checking should not be applied to____a) Sales book 2. Test checking is appropriate :
b). Store notes a) Large business concerns b).Huge number of transactions
c).Bank reconciliation statementd) Bills book c). When internal check system is satisfactory d) All above
3. Audit note book is a__________ 4. Audit of a bank is generally conducted through:
a) Audit planning b) Audit programming a)Routine checking b) Couching
c) Audit diary to record auditor's observations c) Balance sheet audit d) Profit & Loss
d) Checking of arithmetical accuracy of accounting
records
5. _____Audit is the process of evaluating a firm's various 6. In banking companies:
operating procedures, code of conduct, and other factors a) Intensive audit is taken place
to determine its effect on the society. b) Auditor examine each transaction in detail
a) Cost audit b) Performance audit c) Auditor minutely check the assets and liabilities
c) Social audit d) Tax audit shown in balance sheet d) None of these
7. The first step in audit of Educational Institutions: 8. Cost Audit report is to be furnished:
a) Read through the minutes of the meetings of the a) Within 90 days of the end of the relevant year
Managing Committee Governing Body b) Within 180 days of the end of the relevant financial
b) Check admission fees with admission slips signed by year
the head of the institution and confirm that the amount c) Within 30 days of the date on which the relevant
had been credited to a Capital Fund records are made
c) Verify the annual statement of accounts d) At least 21 days before the date of annual general
d) To examine the Trust Deed or Regulations meeting of the company
9. Tax audit is compulsory in case of a person is carrying 10. The civil liability of an auditor can be for______
on business whose gross turnover exceeds a) Misfeasance b) Negligence
a) ₹1 Crore b) ₹60 Lakhs c) Accomplishment d) Both (a) or (b)
c) ₹2 Crore d)₹40 Lakhs
11.Social audits are done to_ 12. Cost audit is conducted under the direction of
a) Strengthen accountability b) Address corruptionc). a) The central government b) The state government
Both of thesed) none of these c) The BOD d) The management
13. According to which of the following Act, final accounts 14. Main object of Cost Audit is:
of Insurance Companies are prepared? a) Checking of accuracy of total cost and per unit cost of
a) Insurance Companies Act, 1938 production
b) Companies Act, 1956 b) Determining total cost
c) Both above (a) and (b) c) Determining tender price
d) None of these d) All above
15. Audit of a co-operative society is 16. Minimum percentage of provision for an Insurance
a) Internal b) Final Company is:
c) Company d) Statutory a) 20% b) 25%c) 40% d) 10%
17. In India, the audit of co-operative society, 18. Efficiency Audit ensures return on Capital Employed
a) Voluntary b) Mandatory a) Optimum b) Minimum
c) Mandatory on satisfying certain criterion . c) Maximum d) Average
d) Mandatory for some specified clans of societies
19. Management audit means 20. The auditor should see that the checking allotment of
a) Audit undertaken on behalf of the management shares is made within_______
b) Evaluating performance of various management a) 100 days of issue of prospectus
processes and functions b) 150 days of issue of prospectus
c) Audit undertaken on behalf of Gayt, to punish a) 120 days of issue of prospectus
management d) Compulsory audit d) 80 days of issue of prospectus
21. Dividend warrants should be issued to or dividend 22. The appointment of subsequent auditor in a non-
should be paid to the member within how much time, government company is done by the______ and he will hold
after the dividend is declared? office till the conclusion of the_____ meeting
a) 21 days b) 42 days c) 30 days a) Board of Directors, 4th b) Members, 6th
d) Before the end of respective financial year. c) Government, 10thd) Company Law Board, 8th
23.First auditor of a company is appointed by the_____ 24. Audit of accounts of company has been made
a) Shareholders b) Central Government compulsory in order to protect the interest of the____
c) Company Law Board a) Managers b)Shareholders
d) Board of Directors c) Employees d) Board of Directors
25. Audit is not a statuary requirement 26. Tax audit is compulsory under section:
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a) Management b) Tax Audit c) Financial d) None a) 44 AB b) 44 AA c) 44 AD d)44 AC
27. Which of the following persons is qualified to be a 28. The company auditor has aright of access to______
company auditor? a) The statutory and statistical books
a) An employee of the company b) A body corporate b) The books of accounts
c) A person who is indebted to the company an amount c)The costing books
exceeding ₹1,000 d)A practicing chartered accountant d) All of the above
29. The duties of auditor of a partnership firm are 30. Which of the following is not a right of auditor?
regulated by______ a) Right of access to books and vouchers
a) Partnership Actb) Partnership Deed b) Right toreceive notices and to attend general meeting
c) Agreement between Firm and Auditor c) Rightto sign audit report
d) Partner consensus d) Right to give remuneration
31. Audit Report is ın the nature of______ 32. Modified opinion is, also called as ______report.
a) Checkingb) Investigation a) Cleanb) Qualified
c) Verificationd) Documentation c) Unqualified d) Expected
33. ____of Companies Act, 2013 mandates reporting on 34. ___is a statement given by auditor after he vouchsafes
CARO the truth of such statement
a) Section 139 b) Section 141 a) Audit Report b) Audit Certificate
c) Section 143 d) Section 145 c) Audit Program d) None of the mentioned
35.The process of distribution of work among employees 36. The object of internal check is to_____
according to their ability is known as________ a) Control wastage of resources.
a) Internal Control b)Internal audit b) Prevent errors and frauds.
c) Internal check d) None of these c) Verify the cash receipts and payments
d) Facilitate quick decision by the management
37. Effective internal check system reduces______ 38. Internal check is carried on by______
a) The liability of auditor. a) Special staff. b) Internal auditor.
b) Both work as well as auditor. c) Accountant
c) Work of auditor. d) The members of the staff among themselves.
d) Responsibilities of an auditor.
39. Under the Internal Check System 40. Purchases book records
a) Responsibilities of employees are determined a) Credit purchases only
b) Work of an employees is checked automatically by b) Both cash and credit purchases
other employee c) Cash purchases only
c) Division of work among employees d) Purchase return
d) All of the above
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