Classification Of Auditing(Auditing ) Questions and Answers

Question 1. Which of the following is compulsory by law?
  1.    Government audit
  2.    Internal audit
  3.    cost audit
  4.    Statutory audit
Explanation:-
Answer: Option D. -> Statutory audit


Question 2. A review of operations and records, sometimes continuous, undertaken within a business by specially assigned staff is called:
  1.    Interim audit
  2.    Internal audit
  3.    final audit
  4.    external audit
Explanation:-
Answer: Option B. -> Internal audit


Question 3. An audit that is done throughout the year with regular or irregular intervals is called:
  1.    Final audit
  2.    continuous audit
  3.    interim audit
  4.    partial audit
Explanation:-
Answer: Option B. -> continuous audit


Question 4. Which of the following audit is optional?
  1.    Trusts
  2.    Joint stock companies
  3.    Proprietorship
  4.    None of the above
Explanation:-
Answer: Option C. -> Proprietorship


Question 5. An audit that is carried through to completion in one continuous session is called:
  1.    Partial audit
  2.    interim audit
  3.    continuous audit
  4.    final audit
Explanation:-
Answer: Option D. -> final audit


Question 6. Which of the following audit is suitable when number of transactions is very large?
  1.    Partial audit
  2.    interim audit
  3.    continuous audit
  4.    final audit
Explanation:-
Answer: Option C. -> continuous audit


Question 7. Which of the following audits is conducted at regular intervals throughout the accounting year?
  1.    Partial audit
  2.    interim audit
  3.    continuous audit
  4.    final audit
Explanation:-
Answer: Option C. -> continuous audit


Question 8. Which of the following audit is taken up after the end of the accounting year?
  1.    Partial audit
  2.    interim audit
  3.    continuous audit
  4.    final audit
Explanation:-
Answer: Option D. -> final audit


Question 9. Auditor is consistently engaged in checking the accounts during the whole period or where the auditor attends at regular or irregular intervals during the period:
  1.    Final audit
  2.    interim audit.
  3.    continuous audit
  4.    partial audit
Explanation:-
Answer: Option C. -> continuous audit


Question 10. Which of the following is a kind of audit?
  1.    Statutory audit
  2.    Continuous audit
  3.    Final audit
  4.    All of these.
Explanation:-
Answer: Option D. -> All of these.


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