MCQ on Audit Report
Audit Report MCQs
MCQS for UGC NET, B.Com, M.Com
In this page, you will get MCQs on Audit Report which are useful for B. Com and Various Professional Exams Like CA/CMA and CS.
We update this page frequently to add new questions. Chapter wise Auditing MCQs are also included in this post.
Introduction to Audit Report
Audit Report MCQs
1.
Audit committee is mandatory for:
a) All listed public companies.
b) For unlisted companies having paid up of Rs.
10 crores or more.
c) For unlisted companies having turnover or Rs.
100 crores or more or having outstanding long term payments exceeding Rs. 50
crores or more.
d) All of the above.
Ans: d) All
of the above.
2.
Audit committee shall constitute minimum __________ 3 directors where independent
directors forming majority.
a) Three.
b) Four.
c) Five.
d) Six.
Ans: a) Three.
3. The
meetings of Audit committee should be _____ in a year.
a) Three.
b) Four.
c) Five.
d) Six.
Ans: b) Four.
4. SA
700 stands for:
a) True and fair view of the company.
b) Forming an opinion and reporting on Financial
Statement.
c) Qualified report.
d) Disclaimer of opinion.
Ans: b) Forming
an opinion and reporting on Financial Statement.
5.
Audit report is meant for the _________ of the company.
a) Shareholders.
b) Creditors.
c) Employees.
d) Bankers.
Ans: a) Shareholders.
6. Sec.
143 (12) of the Companies Act state that any ____ of the company has to be
reported to central government.
a) Fraud by officers or employees.
b) Errors in books of account.
c) Incomplete books of accounts.
d) Qualified report.
Ans: a) Fraud
by officers or employees.
Also Read: Chapterwise Auditing MCQs
👉 Introduction to Auditing MCQS
7. Violation
of section 143 (12) imply a fine of Rs. ___ lakh.
a) One.
b) Two.
c) Three.
d) Four.
Ans: a) One.
8. An
audit report is the final product of audit work by:
a) Audit staff.
b) Auditor.
c) Management.
d) Internal auditor.
Ans: b) Auditor.
9.
Caro 2016 is applicable to the:
a) Banking Companies.
b) Insurance Companies.
c) One person Companies.
d) None of the above.
Ans: d) None
of the above.
10.
CARO 2016 is applicable to the following private companies:
a) Not a holding or subsidiary of a public
company.
b) Shareholder’s fund is less than 1 crore.
c) Revenue less than or equal to Rs. 10 crores.
d) Borrowing more than Rs. 1 crores in any time
during financial year.
Ans: d) Borrowing
more than Rs. 1 crores in any time during financial year.
11.
The audit report should be signed in the personal name of the:
a) Audit staff.
b) Auditor.
c) Management.
d) Internal auditor.
Ans: b) Auditor.
12. A
clean report is issued when, the auditor is satisfied with the:
a) Fairness of Balance Sheet and Profit and Loss
account.
b) All the contents of the financial
statements.
c) Evidences, documents and explanation given by
his clients.
d) All of the above.
Ans: d) All
of the above.
13. Audit
report with reservations is knows as:
a) Clean Report.
b) Qualified Report.
c) Adverse opinion.
d) Disclaimer of Opinion.
Ans: b) Qualified
Report.
14.
Disclaimer of opinion is made when auditor is:
a) Satisfied with the fairness of Balance
Sheet and Profit and Loss account.
b) Not agree with affirmation made by the
management in the books.
c) Unable to form overall opinion on Financial
Statement.
d) All of the above.
Ans: c)
Unable to form overall opinion on Financial Statement
15.
Negative report is made when auditor is:
a) Satisfied with the fairness of Balance
Sheet and Profit and Loss account.
b) Not agree with affirmation made by the
management in the books.
c) Unable to form overall opinion on Financial Statement.
d) All of the above.
Ans: b) Not agree
with affirmation made by the management in the books.
16. Which one the
following statement is true?
a) Audit is a systematic and Independent examination of books of
accounts.
b) The audit should be conducted in unbiased manner.
c) Audit report is the final product of the whole audit work.
d) All of the above.
Ans: d) All of the above.
17. Auditor is mainly
concerned with:
a) Critical examination of books of accounts.
b) Verification of accounts prepared by others.
c) Preparation of audit report.
d) All of the above.
Ans: d) All of the above.
18. A piecemeal opinion is issued when whole of the matters
contained in the financial statement is true and fair. False, it is issued
when complete information is not available.
19. A piecemeal opinion is issued when whole of the matters
contained in the financial statement is true and fair. True
20. CARO 2016 is not applicable for foreign
companies. False
21. An audit report is addressed to the authority appointing the
Auditor. True
22. The auditor gives a clean report when he doesn’t have any
significant reservation in respect of matters contained in the Financial
Statements. True
23. An audit report is addressed to the authority appointing the
Auditor. True
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