871. Review of internal contol system is very important for the auditor as the effectives of internal control system will determine the extent of checking to be done by the -\
A. Accountant
B. Management
C. Both accountant and management
D. Auditor

872. The compliance test and substantive procedures performed by the auditor will determine the effectiveness of –
A. Management Accounting System
B. Cost Accounting system
C. Internal Audit system
D. Internal Control system

873. Auditor has to compare the balance sheet and Profit and liss account or other statement with the-
A. Bank statement
B. Cash Book
C. Both (a) and (b) above
D. Books of Accounts and supporting vouchers

874. The auditor has to give its opinion whether the financial statements depicts
A. Correct view of the accounts
B. Acceptable view of the accounts
C. True and fair view of the state of affairs of organization
D. None of the above

875. It is because of audit the the owner will be satisfied about the
A. Profits of the organisation
B. Employees, customers and suppliers of the organization
C. Business operations and working of its various departments
D. None of the above

876. No one will try to commit an error or fraud as the accounts are subject to-
A. Scrutiny
B. Internal control
C. Audit
D. None of the above

877. Auditing is very useful in obtaining the independent opinion of the auditor about-
A. Financial condition
B. business condition
C. Profits/losses
D. Business condition

878. Audit helps in protecting the interests of-
A. Employees
B. Government
C. Management
D. Shareholders in case of joint stock company

879. Money can be borrowed easily on the basis of audited balance sheet from-
A. Private sources
B. Creditors
C. Financial institutions
D. Government

880. Generally auditing exercise on is based on test checking, Inferring a result on the basis of test check always need not to be-
A. Fair
B. Apparently correct
C. True
D. None of the above

NOTE
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