MCQs on Cost Audit 1

Which one is not the objective of cost audit?

• Controls fraud

• Would save your organization

• constructs vibrant organizational image

• Make the human resources effective

Who are most associated with the cost audit?

• Investors

• Government

• Employee

• Customers

• Stakeholders

What is the first procedure for cost audit?

• Risk Assessment

• Review and Procedures

• Understanding the entity

• Finding sufficient Evidence

What is the first procedure for risk based approach to fraud detection?

• Fraud risk assessment

• Fraud risk factors

• Audit procedure

• Fraud detection

The Enron scandal was associated with the

• American investors

• Indian Investors

• Australian Investors

• Japaneses Investors

Enron scandal was done through

• Keeping losses off the balance sheet

• Misstatement in the tax calculations

• Keeping huge debts off the balance sheet

• Showing overstated profits

How Waste Management Scandal came in to existance?

• Keeping huge debts off the balance sheet

• Showing overstated values of assets in the balance sheet

• Keeping their losses off the P&L

• Falsely increased the depreciation time length

Worldcom Scandal belongs to

• Telecommunication

• Information Technology

• Automobile sector

• Hotel Industry

Right full form of the PWC is

• Price Water and Coopers

• Price Waterhouse Coopers

• Price Waterhouse and Coopers & Lybrand

• Price Waterhouse Corporation

Which audit firm was associated with Satyam Scandal

• KPMG

• PWC

• Deloitte

• Ernst & Young