MCQs are one of the best ways to test a student’s comprehension of a concept. Academic Task subject experts have prepared these Auditing MCQs based on current trends and practices. Furthermore, the questions present in the auditing MCQs section will be beneficial for competitive examinations and tests (PPSC Test, FPSC Test
31. The scope of internal audit is decided by the___________?
A. Shareholders
B. Management
C. Government
D. Law
32. Audit of banks is an example of____________?
A. Statutory audit
B. Balance sheet audit
C. Concurrent audit
D. All of the above
33. Concurrent audit is a part of____________?
A. Internal check system
B. Continuous audit
C. Internal audit system
D. None of these
34. Audit in depth is synonymous for____________?
A. Complete audit
B. Completed audit
C. Final audit
D. Detailed audit
35. According to ISA 315, which of the following is NOT an element of the control environment?
A. Participation of management
B. Information processing
C. Commitment to competence
D. Human resource policies and practices
36. According to ISA 315, which of the following is NOT a control activity?
A. Performance reviews
B. Physical controls
C. Organizational structure
D. Segregation of duties
37. Lapping is also known as___________?
A. Teeming and lading
B. Looping
C. Embezzlement
D. Hacking
38. Goods sent on approval basis’ have been recorded as ‘Credit sales’. This is an example of____________?
A. Error of principle
B. Error of commission
C. Error of omission
D. Error of duplication
39. Which of the following statements is not true?
A. Management fraud is more difficult to detect than employee fraud
B. Internal control system reduces the possibility of occurrence of employee fraud and management fraud
C. The auditor’s responsibility for detection and prevention of errors and frauds is similar.
D. All statements are correct.
40. Internal audit is undertaken:
A. By independent auditor
B. Statutorily appointed auditor
C. By a person appointed by the management
D. By a government auditor