Auditing MCQs

136 MCQs  — Accounting MCQs  (Page 1 of 14)

Practice Auditing MCQs with correct answers and explanations. These questions are from the Accounting MCQs section.

Which of the following is not true about opinion on financial statements?
A. The auditor should express an opinion on financial statements.
B. His opinion is no guarantee to future viability of business
C. He is responsible for detection and prevention of frauds and errors in financial statements
D. He should examine whether recognised accounting principle have been consistently
The main object of an audit is _____________?
A. Expression of opinion
B. Detection and prevention of fraud and error
C. Both (a) and (b)
D. Depends on the type of audit.
An auditor is like a_______________?
A. Blood haunt
B. Watch dog
C. May both according to situation
D. None of these
Auditing is compulsory for____________?
A. Small scale business
B. Partnership firms
C. Joint stock companies
D. Proprietary concerns
The fundamental objective of the audit of a company is to_____________?
A. Protect the interests of the minority shareholders
B. Detect and prevent errors and fraud
C. Assess the effectiveness of the company’s performance
D. Attest to the credibility of the company’s accounts
The concept of stewardship means that a company’s directors________________?
A. Are responsible for ensuring that the company complies with the law
B. Are responsible for ensuring that the company pays its tax by the due date
C. Safeguard the company’s assets and manage them on behalf of the shareholders
D. Report suspected fraud and money laundering to the authorities