MOST IMPORTANT QUESTION OF AUDITING FOR UDC ACCOUNTS, REVENUE ACCOUNTS AND INTERNAL AUDITOR

1. The term “Audit” originated from the Latin worda
(a)Audire           b) Adhere
c) Adihere          d) None of the above
2. The basis for decision making by the management is
a)Accounting statements b) Financial Statement
c) Bank statements d) None of the above
3. The management takes so many decisio
ns on the basis of
a)Accounting statement       b) Financial statements
c) Bank statements                  d) None of the above
4. The authenticity of financial statements is very essential and such authenticity of accounts
can be assured with the help of an
a)Internal Audit                      b) Performance Audit
c) Independant Audit           d) None of the above
5. Examination 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

6. Express an opinion on the financial or non financial areas is the goal of
a)Accounting                  b) Managing
c) Auditing                        d) None of the above
7. In the case of financial audit, a set of financial statements are said to be true and fair when they
are free of
a)Error b) Fraud
c) Material Misstatements d) None of the above
8. Audit deals with checking, verification and examination of
a)Accounts                       b) Finance
c) Management                 d) None of the above
9. Time, extent and nature of audit depend upon effectiveness of
a)Environmental Control System              b) Management Control System
c) Both(a) and (b)above                                   d) Internal Control System
10. ________ is responsible for ‘Maintenence of accounts”
a) Auditing                 b) Accountong
c) Both (a) and (b)above      d) Management
11. Auditor has to report that accounts have been prepared as per GAAP and presents a ____
a) Correct view of business operantions
b) Authentic view of business operations
c) Both(a) and (b)above
d) true and fair view of business operation
12. Auditing can be defined as an independent examination of –
a) Financial records                       b)Non financial records
c) Both(a) and (b)above             d) None of the above
13. The objective of an audit of financial statements is to enable an auditor to …………. on
financial statements
a) Complition of an audit               b) Express on opinion
c) Check the transaction                 d) Check frauds
14. Accounts maintenance is the function of …….
a) Auditor                        b) Accountant
c) Auditor staff            d) Practicing Professionals
15. The main object of an audit is
a)Expression of opinion         b) Detection and prevention of fraud and error
c) Both(a) and (b)above         d) Depends on the type of audit
16. Review of system and procedure is the primary function of
a)Accounting           b) management
c) Auditing                  d) None of the above
17. Review of internal contol system is very important for the auditor 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
18. The compliance test and substantive procedures performed by the auditor will determine the
effectiveness of –
a) Management Accounting System           b) Cost Accounting system
c)I nternal Audit system                 d)I nternal Control system
19. Auditor has to cpmpare the balance sheet and Profit and liss account or other statement with
the
a)Bank statement                  b) Cash Book
c) Both (a) and (b) above           d) Books of Accounts and supporting vouchers
20. The auditor has to give its opinion whether the financial statements depicts
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