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Type of Audit MCQ

The document discusses different types of audits including statutory, financial, secretarial, cost, tax, bank, management, propriety, efficiency, and cooperative society audits. It provides details on their objectives, requirements, and those responsible for conducting them.

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Shoaib Ahmed
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24 views8 pages

Type of Audit MCQ

The document discusses different types of audits including statutory, financial, secretarial, cost, tax, bank, management, propriety, efficiency, and cooperative society audits. It provides details on their objectives, requirements, and those responsible for conducting them.

Uploaded by

Shoaib Ahmed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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1. What is another name for Statutory Audit?

A) Financial Audit
B) Government Audit
C) Internal Audit
D) Secretarial Audit

2. Why is financial audit needed in a company?


A) To evaluate the effectiveness of control systems
B) To assess the performance of management
C) To ensure compliance with various laws and regulations
D) To provide assurance about the reliability of the company's financial
statements

3. Who appoints the auditor for a company during the first annual
general meeting?
A) The shareholders
B) The management
C) The company
D) The government
4. Which class of companies is required to appoint an internal auditor?
A) All types of companies
B) Private companies only
C) Unlisted public companies with outstanding loans
D) Listed companies and companies meeting certain criteria

5. What does a secretarial audit focus on?


A) Profitability and financial position
B) Financial position and performance
C) Internal control systems
D) Compliance with legal and procedural requirements

6. Who is assigned the role of Secretarial Auditor?


A) Bank Auditor
B) Chartered Accountant
C) Cost Accountant
D) Company Secretary in Practice
7. Is Secretarial Audit mandatory for companies?
A) Yes, only for public companies
B) Yes, for listed companies
C) Yes, for all types of companies
D) No, it is optional

8. What is the purpose of Cost Audit?


A) Verification of correct income tax assessment
B) Detection of non-compliance
C) Monitoring and regulation of activities
D) Review and examination of cost accounting records

9. Who conducts the cost audit?


A) Statutory Auditor
B) Cost Accountant in Practice
C) Internal Auditor
D) Tax Auditor
10. What is the objective of Tax Audit?
A) To evaluate the performance of management
B) To monitor compliance with legal and procedural requirements
C) To assist the tax authorities in making correct income tax
assessments
D) To verify the correctness of cost accounts

11. Which businesses are required to get their accounts audited for
income tax purposes?
A) All businesses, regardless of turnover
B) Sole proprietorship businesses only
C) Partnership firms and corporations
D) Those with turnover or gross receipts exceeding a specified limit

12. What is the objective of Bank Audit?


A) To review and examine cost accounting records
B) To comply with the provisions of various laws
C) To certify the financial position of the bank and ensure compliance
D) To detect non-compliance in processes
13. Who is responsible for the audit of government transactions and
accounts?
A) An independent audit agency specified by the Ministry of Finance
B) External auditors hired by the government
C) The governing body of each government department
D) Comptroller and Auditor General of India

14. What is the main objective of management audit?


A) To ensure compliance with established rules and standards
B) To detect non-compliance and take corrective measures
C) To review and evaluate the financial performance of the organization
D) To provide suggestions to improve the management's work

15. What is Propriety Audit concerned with?


A) Assessing the compliance of management decisions
B) Evaluating the financial soundness of the organization
C) Verifying whether transactions comply with established rules and
standards
D) Reviewing the efficiency and productivity of the organization
16. What does efficiency audit measure?
A) The level of service provided by the organization
B) The size and channels of expenditure in the organization
C) How well an organization uses its resources to produce goods and
services
D) The compliance of the organization with legal requirements

17. What are the inputs in efficiency evaluation?


A) Timeliness and accuracy of financial reporting
B) Resources used by the organization
C) The level of service provided to clients
D) The quantity and quality of goods and services produced

18. What is the ratio used to measure productivity?


A) The ratio of outputs to inputs
B) The ratio of the organization's net worth to its turnover
C) The ratio of profits to revenue
D) The ratio of current assets to current liabilities
19. How is efficiency improved?
A) By increasing the quantity and quality of inputs
B) By reducing the cost of inputs without affecting outputs
C) By reducing the quantity of outputs to optimize quality
D) By producing more outputs with the same or fewer resources

20. What type of audit is performed for co-operative societies?


A) Government Audit
B) Internal Audit
C) Statutory Audit
D) Independent financial audit
Answer Sheet
1. A
2. D
3. C
4. D
5. D
6. D
7. D
8. D
9. B
10. C
11. D
12. C
13. D
14. D
15. C
16. C
17. B
18. A
19. D
20. D

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