Fundamentals of Auditing

Annexure B

Objective Type Questions

1. Auditing refers to
   1. Preparation and checking of accounts
   2. Examination of accounts of 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. The main objective of auditing is

   1. Detection of errors
   2. To find out whether Profit & Loss accounts and Balance Sheet show true and fair state of the affairs of the company
   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. The limitation ...