Auditing MCQs with Answers

This is Auditing MCQs section with detailed explanations for preparation of screening tests, interviews for government jobs. In this section candidate will learn MCQs on variety of topics from the subject.

1. 121 The auditor has a right to___________
   

   1. Obtain information and explanation

   2. Obtain information and explanation from the employees and officers

   3. Obtain information and explanation necessary for the purpose of audit

   4. Both

   5. and C.

   See Answer

   Added By: Ak Aamir

   Answer

   : Both B. and C.

   Explanation

   :
   N/A

2. 122 The branch auditor is appointed by___________
   

   1. Shareholders in an annual general meeting

   2. Shareholders in general meeting

   3. Board of directors in board meeting

   4. Any of the above

   See Answer

   Added By: Ak Aamir

   Answer

   : Shareholders in general meeting

   Explanation

   :
   N/A

3. 123 Auditor of a___________company does not have right to visit foreign branches of the company
   

   1. Unlimited liability

   2. Manufacturing

   3. Banking

   4. Nonprofit making

   See Answer

   Added By: Ak Aamir

   Answer

   : Manufacturing

   Explanation

   :
   N/A

4. 124 The date on auditors report should not be____________
   

   1. the data of AGM

   2. later than the date on which the accounts are approved in boards meeting

   3. earlier than the date on which the accounts are approved by the management

   4. Both and B.

   See Answer

   Added By: Ak Aamir

   Answer

   : earlier than the date on which the accounts are approved by the management

   Explanation

   :
   N/A

5. 125 When restrictions that significantly affect the scope of the audit are imposed by the client, the auditor generally should issue which of the following opinion
   

   1. Qualified opinion

   2. Disclaimer of opinion

   3. Adverse opinion

   4. Unqualified report with an emphasis of matter paragraph

   See Answer

   Added By: Ak Aamir

   Answer

   : Qualified opinion

   Explanation

   :
   N/A

6. 126 The auditor has serious concern about the going concern of the company. It is dependent on companys obtaining a working capital loan from a bank which has been applied for. The management of the company has made full disclosure of these facts in the notes to the balance sheet. The auditor is satisfied with the level of disclosure. He should issue___________
   

   1. unqualified opinion

   2. unqualified opinion with reference to notes to the accounts

   3. qualified opinion

   4. disclaimer of opinion

   See Answer

   Added By: Ak Aamir

   Answer

   : unqualified opinion with reference to notes to the accounts

   Explanation

   :
   N/A

7. 127 Which of the following is true about explanatory notes
   

   1. These are given by the directors of the company

   2. These are given to adhere to requirements of section 211.

   3. These are given by auditors of the company in auditors report

   4. All of the above

   See Answer

   Added By: Ak Aamir

   Answer

   : These are given by the directors of the company

   Explanation

   :
   N/A

8. 128 The client changed method of depreciation from straight line to written down value method. This has been disclosed as a note to the financial statements. It has an immaterial effect on the current financial statements. It is expected, however, that the change will have a significant effect on future periods. Which of the following option should the auditor express
   

   1. Unqualified opinion

   2. Qualified opinion

   3. Disclaimer of opinion

   4. Adverse opinion

   See Answer

   Added By: Ak Aamir

   Answer

   : Unqualified opinion

   Explanation

   :
   N/A

9. 129 Which of the following documents is not relevant for vouching cash sales
   

   1. Daily cash sales summary

   2. Salesmens summary

   3. Monthly statements sent to customers

   4. Bank statement

   See Answer

   Added By: Ak Aamir

   Answer

   : Monthly statements sent to customers

   Explanation

   :
   N/A

10. 130 To test whether sales have been recorded, the auditor should draw a sample from a file of__________
    

    1. purchase orders

    2. sales orders

    3. sales invoices

    4. bill of loading

    See Answer

    Added By: Ak Aamir

    Answer

    : sales invoices

    Explanation

    :
    N/A