1. An auditor conducts a surprise check on the pay day the day wages and salaries are paid. The primary purpose of these audit procedures is:
(a) To ensure that there are no ghost workers
(b) To ensure the casual employed are authorized by the supervisor
(c) To test procedures for distributing pay
(d) To obtain understanding of internal control system
To test procedures for distributing pay
2. The creditors, balance sheet, generally, have credit balance. Debit balance may be due to:
(a) Advance paid against an order
(b) Goods returned
(c) Wrong debit to supplier account
(d) Any of these
Any of these
3. Which of the following activities should not be done by same department?
(a) Maintaining personnel records and approving changing in wages rates
(b) Proposing pay roll summary and disbursement of wages
(c) Making salary statements and, filing tax returns
(d) Comparing, time clock records with time reports prepared by supervisors
Proposing pay roll summary and disbursement of wages
4. Vendors accepted by management before purchase department performs an order. If this is not done then which situations may arise?
(a) Purchases could be made from whose product may not be good
(b) Purchases may be made from related parties without management’s knowledge
(c) Purchases could be made from vendors who may have offered price purchases to vice-president
(d) Any of these
Any of these
5. The auditor is most likely to examine related party dealings very carefully while vouching:
(a) Credit sales
(b) Sales returns
(c) Credit purchases
(d) Cash purchases
Credit purchases
6. In case of untaken wages, the auditor should observe whether:
(a). The amount has been submit in a separate bank account
(b) Deposited with the cashier
(c) Held in a safe deposit box
(d) All of these
The amount has been submit in a separate bank account
7. Which of the following would prevent double payment of the same voucher?
(a) The person signing the cheque should cancel the supporting documents
(b) Cheques should be signed by at best two persons
(c) The data of payment of vouchers of similar nature should be the same
(d) All of the above
The person signing the cheque should cancel the supporting documents
8. The principal reason for the auditor to examine supplier’s statements at balance sheet date is to obtain evidence that:
(a) The supplier exist
(b) There are liabilities no unrecorded
(c) Recorded purchases actually occurred
(d) To link creditors with cashbook entries
There are liabilities no unrecorded
9. In case of vouching, the auditor is least likely to examine approval by proper expert in case of:
(a) Bad bads written off
(b) Sales return
(c) Purchase return
(d) Discount allowed to clients as per structural policy
Discount allowed to customers as per organizational policy
More MCQs on Auditing
- Auditing MCQs
- Basic Auditing MCQs
- Cash Transaction Audit MCQs
- Electronic Data Processing (EDP) MCQs
- MCQs on Verification & Valuation of Assets in Audits
- Financial Planning & Cost Accounting MCQs
- Depreciation & Adjustment MCQs
- Audit Internal Control MCQs
- Govt Audit MCQs
- Bill Exchange MCQs
- Cash Book MCQs
- Financial Planning & Cost Accounting MCQs
- Treasury Audit MCQs
- Control Account MCQs
- Financial Accounting MCQs
- Repeated MCQs of Finance
- Bank Reconciliation Statement MCQs
- MCQs on Account, balance, debit, & credit
- Financial Statement MCQs
- Income statement MCQs
- Account Errors MCQs
- Capital Account and System Entry MCQs
- Capital And Revenue Expenditure MCQs
- Non-Profit Organization MCQs
- Capital Account MCQs
- Lease MCQs
- Business Partnership MCQs
- Auditing MCQs Past Papers
- MCQs for Auditor Jobs
- Scrutiny of Record for Audit Purpose MCQs