281. Which of the following is not a limitation of audit as per AAS4?
A. Objectivity of auditor’s judgment
B. Selective testing
C. Persuasiveness of evidence
D. Limitations of internal control system.

282. Which of the title of AAS2 issued by Council of ICAI ___
A. Objective and Scope of the Financial Statements
B. Objective and Scope of the Audit of Financial Statements
C. Objective and Scope of Business of an Entity
D. Objective and Scope of Financial Statements Audit

283. Management auditor should have a thorough knowledge of
A. Financial Accounting
B. Production techniques
C. Costing systems
D. All of the above

284. A management auditor can recommend the most suitable system of flow of information _______.
A. Internally
B. Externally
C. Internally and externally
D. None of the above

285. Management auditor should be conversant with the nature of production activities in organization.
A. True
B. False

286. Management auditor should be well versed with
A. Management by exception
B. Management by objectives
C. Principles of delegation of authority
D. All of the above

287. Which of the following statements are true about management audit?
A. The management audit is made compulsory and statutory
B. Management audit is a programme of one year
C. Management audit cannot be conducted by an independent person
D. No time limit can be fixed for submission of the report under management audit

288. Cost audit is a verification of cost records to estimate the ________ efficiency of a business.
A. External
B. Internal
C. Both internal and external
D. None of the above

289. The management auditor’s work begins
A. After the work of a statutory auditor ends
B. Before the work of a statutory auditor begins
C. Varies from firm to firm
D. None of the above

290. Management auditing is a part of statutory auditing.
A. True
B. False

NOTE
IF YOU THINK ANY OF THE MCQ ABOVE IS WRONG.
PLEASE COMMENT WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION IN COMMENT BOX.
THANK YOU

Leave a Reply