1061. Auditing refers to :
A. Preparation and checking of accounts
B. Only the accounts of business units are examined
C. Professional accountants only examine the accounts *
D. Check of vouchers
1062. Main object of auditing is :
A. Detection of errors
B. To find out whether P and L A/C and B/S show true and fair state of affairs
C. Detection of frauds *
D. Finding and avoiding errors and frauds
1063. Auditing is luxury for a :
A. Joint stock company
B. Partnership firm
C. Small shop-keeper *
D. Government company
1064. Limitation of audit is :
A. That is does not reveal complete picture
B. That is does not guarantee accuracy of accounts
C. That auditor may be biased
D. All of the above *
1065. Auditor, in general, is an :
A. Employee of the company
B. Agent of the company
C. Agent of the shareholders *
D. None of the above
1066. Auditing is compulsory for :
A. Small-scale business enterprises
B. All partnership firms
C. All joint stock companies *
D. All proprietary concerns
1067. Propriety audit refers to :
A. Verification of accounts
B. Examination of accounts of proprietary concerns
C. Questioning regarding the necessity and justification of expenditures *
D. Audit of government companies
1068. Propriety audit is normally undertake in case of :
A. Joint stock company
B. Government company
C. Statutory corporation
D. Government departments *
1069.Test checking should not be applied to :
A. Purchase book
B. Sales Book
C. Stock book
D. Cash book *
1070. Special audit is necessary for :
A. Manufacturing concern
B. Processing concern
C. Inefficient concern *
D. Trading concern