381. The purpose of the audit of wage payment is to determine that __________.
A. the work is executed completely for which the workers are paid wages.
B. the workers are paid the correct amount of wages under proper authorization.
C. the workers are working regularly.
D. none of the above.

382. One of the audit procedures to check the issue of share capital of the newly formed company is__________.
A. the memorandum of association and articles of association.
B. the share transfer register.
C. the issue of debenture.
D. none of the above.

383. Capital reserves are created out of profits of __________.
A. a revenue nature.
B. a capital nature.
C. a secret reserve.
D. contingency reserve.

384. A good audit report must at least meet one of the following qualifications __________.
A. it should offer constructive and timely suggestions to the management.
B. it should not point out mistakes.
C. it should not be based on factual information.
D. it should not be based on balance sheet.

385. The work of one clerk is automatically check by another clerk is called _________.
A. Internal control.
B. Internal check.
C. Internal audit.
D. None of the above.

386. The owners of the company are called __________.
A. Debenture holders.
B. Debtors.
C. Shareholders.
D. None of the above.

387. Verification is __________.
A. the art of recording the business transaction.
B. an examination of the books of accounts.
C. the act of establishing the accuracy of entries in the books of accounts.
D. none of the above.

388. Depreciation is _________.
A. the decrease in the value of an asset.
B. the increase in the value of an asset.
C. an appreciation to the company.
D. a credit to shareholders.

389. The main objects of investigation is _________.
A. to discover errors and frauds.
B. to prevent errors and frauds.
C. to verify statements.
D. all the above.

390. Internal controls and internal check are ____________.
A. one and the same.
B. different.
C. internal control includes internal check.
D. None of the above.

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