Nature of Auditing Important MCQ

1. is an independent examination of financial information of any entity, whether profit oriented or not, and irrespective of its size or legal structure, where such as examination is conducted with a view to express an opinion ?

1.Auditing
2. Investigation
3. Verification
4. Checking

2. The main objective of financial audit is ?

1.Expression of opinion
2. Detection and prevention of fraud and error
3. Designing internal control system
4. All of these

3. To ensure the financial statements as a whole are free from material misstatements is the ?

1. Scope of audit
2. Aspects to be covered under the audit
3. Objective of Audit
4. All of these

4. The audit should be organized to cover adequately all aspects of the enterprise relevant to the financial statements being audited, is one of the merit consideration is regard to ?

1. Objective of audit
2. Aspects to be covered under the audit
3. Scope of Audit
4. None of these

5. Auditor gives ________ regarding the financial statements ?

1.True and fair view
2.Correct view
3. Scope of Audit
4. Completely true

6. Auditing begins where__________ends ?

1.Selling
2.Inventory Valuation
3. Accounting
4. Purchase

7. Which type of organizations use auditing services?

1. Non-profit-organizations
2.Bussiness
3. Goverments
4. All of the Above

8. Auditing should be ?

1. Independent
2. Compulsory
3.On the request of government
4. None of the above