Auditing: Principles and Techniques

Annexure B

Objective Type Questions

1. Auditing refers to
   1. preparation and checking of accounts
   2. examination of accounts business units only
   3. examination of accounts by professional accountants
   4. checking of vouchers
2. Auditing is a branch of
   1. natural Science
   2. social science
   3. abstract Science
   4. none of them
3. Statutory audit means
   1. compulsory audit
   2. audit as required by law
   3. external audit
   4. all of them
4. Main object of auditing is
   1. detection of errors
   2. to find out whether P&L/c a/c and B/S show true and fair state
   3. detection of frauds
   4. detection and prevention of frauds and errors
5. Auditing is luxury for a
   1. joint stock company
   2. partnership firm
   3. small shopkeeper
   4. government company
6. Limitation of audit is
   1. that it does not reveal complete picture
   2. that it does not ...