Auditing - Unit 1

Auditing means

• Detection and prevention of frauds

• Detection and prevention of errors

• Detection and prevention of errors and frauds

• Controlling of accounts

The liability of auditor can be

• Only civil

• Only criminal

• Either civil and criminal

• Civil and /or criminal

When computer programme or files can be accessed from terminals, access can be limited to authorized individuals by

• appointing a librarian

• controlling passwords

• appointing EDP auditor

• Both (a) and (b)

Audit of banks is an example of

• Statutory audit

• Balance sheet audit

• Concurrent audit

• Both (a) and (b)

• All of the above

Balance sheet audit includes verification of

• Assets

• Liabilities

• Income and expense accounts where appropriate

• All of the above

1.The word 'Audit ' is derived from a Latin word ''audire'' which means ________

• To inspect

• To examine

• To hear

3.In case of government company, the auditor is appointed by __________

• Central Government

• State government

• Board of director

4.The auditor prepares the audit report with the help of ________

• Working papers

• Audit note book

• Trial balance

7.Internal auditor is appointed by ________

• Management

• shareholders

• government

8.Auditing begins where ______ ends

• Selling

• Inventory valuation

• Accounting