1) The independent auditors primary responsibility is to ________??

a) The directors
b) The company’s creditors
c) The company bank
d) The shareholders

2) Process of verification the documentary evidences of transactions are known as ______?

a) Auditing
b) Testing
c) Vouching
d) Verification

3) Auditing is company for_________?

a) Small scale business
b) Partnership firms
c) Joint stock companies
d) Proprietary concerns

4) Which of the following is the example 0f v0ching

a) Trace inventory purchases from the acquisitions journal to supporting invoices
b) Trace selected sales invoices to the sales journal
c) Trace details of employee paychecks to the payroll journal
d) All of the above
5) The examinations of financial transactions with supporting evidence is called
a) Verification
b) Vouching
c) Auditing

6) When auditor use documents to support recorded transactions the process is often called
a) Inquiry
b) Confirmation
c) Vouching
d) Physical examination
7) The procedures specifically outlined in an audit program are primarily designed to
a) Prevent litigation
b) Detect error or irregularities
c) Test internal systems
d) Gather evidence
8) Voching is an examination of _______ to ascertain the accuracy and authenticity of transactions in
the book of accounts
a) Audit files
b) Audit notes book
 c) Documents
9) The duties of internal auditor is prescribed by
a) Companies act
b) Company law board
c) Management
10) _____ audit is forward looking
a) Financial
b) Cost
c) Tex
11) Accounting standard are prepared by
a) SEBI
b) RBI
c) ICAI
d) ITA
12) Voucher relates to ________?
a) Cash receipt
b) Cash payment
c) Credit transactions
d) All the above
13) The auditor of a government company shall be appointed by
a) The government company itself
b) The central govt
c) The share holders
d) The debenture
14) Process of checking the evidence of the entries called_____?
a) Verification
b) Observation
c) Vouching
d) Inspection
15) Total amount spent for advertisement expenses be verified for the
a) Receipts from the medias or advertisement agency
b) Fixed assets register
c) Debtors books
d) None of the above
16) Voucher should be addressed to the_________?
a) Auditor
b) Client
c) Employee
d) None of the above
17) Serial number of vouchers should be______?
a) Colored
b) Continuous
c) Even number
d) Add number
18) The maximum sale of discount on shares shall not exceed________?
a) 20%
b) 15%
c) 10%
d) 18%
19) The chartered accountants act is in
a) 1956
b) 1959
c) 1949
d) 1968
20) Which of the point is not to be considered while checking a voucher.
a) Name of party
b) Serial number of voucher
c) Credit period of payment
d) Accounting entry