Introduction to Auditing

1. ________ is an independent examination of books and records.

• Auditing

• Investigation
• Vouching

• Verification

1. An audit program is prepared by__________.

• Management

• Accountant

• Auditor

• Audit Staff

1. ‘Goods sent on approval basis’ have been recorded as ‘Credit sales’. This is an example of____________.

• Error of principle

• Error of commission

• Error of omission

1. Working papers are the property of------

• The client
• The auditor
• The company's shareholders
• The company's board of directors

1. Audit is conducted with a view to__________ financial statement.

• express opinion on

• prepare

• certify

• predict

1. Shareholders are interested in financial statements for_________.

• Day to day decision making

• Analysing performance

• collection of taxes

1. An audit program is prepared to help__________.

• accountant to prepare balance sheet

• shareholder to file return

• auditor and his staff about work to be done

1. Sales bill 100 nos x ₹ 100 calculated as ₹ 1000 instead of ₹ 10000 is an ________________.

• Error of principle

• Error of omission

• Error of commission

1. ____________ audit is not commenced until after the end of the financial year and then carried on until completed.

• Continuous

• Annual

• Interim

1. Management is interested in financial statements for_________.

• Day to day decision making

• research purpose

• Collection of Tax