1. The basis for decision making by the management is.

a) Accounting statement
b) Financial statemtment
c) Bank statement
d) None of the above

2. the management take so many decisions on the basis of.

a) Accounting statement
b) Financial statemtment
c) Bank statement
d) None of the above

3.the authencity of financial staements is very essential and such

authencity of accounts can by assured with the help of.

a) Internal audit
b) Performance audit
c) Independent audit
d) None of the above

4. examinations of books of accounts with supporting vouchers and

documents in order to detect and prevent error and fraud is the main
function of.

a) Accountant
b) Management
c) Company director
d) Auditing.

5. express on the opinion of financial and non financial areas is the

goal of.
 a) Accounting
b) Manager
c) Auditor
d) None of the above.

6. in the case of finacial audit a set of financial statements ae said to

be true and fair when they are free of.

a) Error.
b) Fraud
c) Material misstatement
d) None of the above

7. audit deals with checking verification and examination of

a) Accounts
b) Finance
c) Management
d) None of the above.

8. the extent and nature of audit depend upon effectiveness of.

a) Environement control system

b) Management control system
c) Both a and b
d) Internal control system

9. …. Is responsible for maintenance of accounts.

a) Auditing
b) Acccounting
c) Both a and b
d) Management
10. auditor has to report that accounts have been prepared as per
GAAP and presents a……………..

a) Correct view of business operations.

b) Authentic view of business operations.
c) Both a and b.
d) True and fair view of business operations.

11. auditing can be defined as an independent examination of.

a) Financial records.
b) Non financial records.
c) Both a and b.
d) None of the above.

12. the objective of an audit of financial statements is to enable an

auditor to … financial statements.

a) Complation of an audit
b) Express on opinion
c) Check the trannsactions.
d) Check frauds.

13. accounts maintance is the function of.

a) Auditor
b) Accountant
c) Auditor staff
d) Practicing professionls.

14. the main object of an audit is.

a) Expression of an opinion
 b) Detection and prevention of fraud and error.
c) Both a and b.
d) Depends of the type of the audit.

15. review of system and procedure is the primary function of

a) Accounting
b) Auditing
c) Management
d) None of the above

16. review of internal control system is very important for the

auditior as the effectives of internal control system will determine
the extent of checking to be done by the.

a) Accountant
b) Management
c) Both accountant and management
d) Auditor

17. the compliance test and substantive procedures performend by

the auditor will determine the effectivenss of.

a) Management accounting system

b) Cost accounting system
c) Internal audit system
d) Internal control system

18. auditor has to compare the balance sheet and profit and loss
account or other statement with the..

a) Bank statement
b) Cash book
 c) Both a and b.
d) Books of accounts and supporting vouchers.

19. the auditor has to give its opinion whether the financial
statements detects

a) Correct view of the accounts

b) Acceptable view of the accounts
c) True and fair view of the state of affairs of organization
d) None of the above.

20. it is because of the audit that the owner will be satisfied about
the.

a) Profits of the organization

b) Employees customers and suppliers of the organization
c) Business operations and working of its various departments
d) None of the above.

21. no one will try to commit an error or fraud as the accounts are
subject to.

a) Scrutiny
b) Internal control
c) Audit
d) None of the above

22. auditing is very useful obtaining the independent opinion of the

auditor about.

a) Financial condition
b) Business condition
c) Profit and loss
 d) Business condition

23. audit helps in protecting the interests of.

a) Employees
b) Government
c) Management
d) Shareholders in case of joint stock company

24. money can be borrowed easily on the basis of audited balance

sheet from

a) Private sources
b) Creditiors
c) Financial institutions
d) Government

25. generall auditing exercise on the basis of test checking inferring a

result on the basis of test check always need not to be

a) Fair
b) Apparently corrected
c) True
d) None of the above.

26. generally an auditor needs to realease the report upto.

a) A specified timeline
b) Unspecified timeline
c) Infinite timeline
d) End of the next accounting period.

27. the eividence obtained by the auditor are persuasive rather than
 a) Correct
b) Relible
c) Conclusive
d) All of the above.

28. an audit cannot add exactness and certainity to financial

statements when these factors

a) Do not exit
b) Exit
c) Are not know
d) None of these above.

29. an audit opinion is based on the information provided by the

a) Emplyees
b) Government
c) Management
d) All of these above

30. the investigations is related to critical checking of……

a) Internal records
b) Particular records
c) Accounting records
d) External records.

31. which of the following is not the objective of internal audit.

a) To keep proper control over business activities.

b) To evaluate accounting system
 c) To report to the owner and outsiders.
d) To evaluate the internal check system.

32. primary responsibility for the adequacy of financial statements

disclosures rest with the ……

a) Auditor
b) Management
c) Auditior staff
d) Central government

33. one of the following not an advantage of an audit.

a) It provides satisfaction for owners

b) It helps getting loans
c) It reduces cost burden
d) It detects errors and frauds.

34. the purpose of audit and investigation is ..

a) Same
b) Different
c) Sometimes same and some times different.
d) None of these above.

35. investigation implies systematic, critical and special examination

of the records of the business of the……

a) General purpose
b) Unspecified purpose
c) Specific purpose
d) None of the above.
36. investigation is conducted by ………

a) Cost accountant
b) Company secretary
c) Chartered accountant
d) Any person.

37. audit is conducted by …

a) Cost accountant
b) Company secretary
c) Chartered accountant
d) Any person.

38. investigation seeks……

a) Conclusive evidence
b) Corroborative evidence
c) Both a and b.
d) Persuasive.

39. auditing seeks ……..

a) Conclusive evidence
b) Corroborative evidence
c) Both a and b above
d) Persuasive evidence.