B.com Part 2 Semester III Audit SGBAU Question Paper MCQ Solved.

Sant Gadge Baba Amaravati University, Amravati 

B.com Part 2 Semester III Audit Question Paper Solved.

Students here are the Multiple Choice questions as well as full paper is solved and if you have any queries and questions you can comment below or fill the contact form given at the bottom.

Section 'A'

1. Multiple choice questions. Only first attempted answer will be assessed.

(1) The main object of an audit is:

(a) Expression of opinion

(b) Detection and prevention of fraud and error

(c) Depend on the type of audit

(d) Both (a) and (b)

(2) Audit in depth is a synonymous for:

 (a) Complete audit

(b) Completed audit

(c) Final audit

(d) detailed audit

(3) Audit of Banks is an example of: 

(a) Statutory audit

(b) Continuous audit

(c) Balance Sheet audit

(d) Both (b) and (c)

(4) Manipulation of accounts to show a better position is called as :

(a) Window dressing

(b) Error of omission

(c) Error of commission

(d) None of the above

(5) Routine checking can ensure: 

(a) Arithmetical accuracy

(b) Correctness of balance sheet

(c) Recording of transactions

(d) Fraud free accounts

(6) Which document is not relevant for vouching cash sales ?

(a) Daily cash sales summary 

(b) Salesmen's summary

(c) Monthly statement sent to customers (d) Bank statement

(7) Patents are depreciated by:

(a) SLM 

(b) WDV

(c) SF

(d) All of the above

(8) Fixed assets are valued at:

(a) Cost

(b) Cost or market value whichever is

(c) Market value

(d) (a) and (b)

(9) The right of the auditor is to:

(a) Access books of accounts

(b) Attend general meeting

(c) (a) and (b)

(d) None

(10) The audit working papers are the property of:

 (a) Board of Directors 

(b) Shareholders

(c) CEO

(d) Auditor

(11) The auditor must be

(a) Director

(b) CA

(c) ICWAI

(d) ICS

(12) The first auditor is appointed by:

(a) Banker

(b) Shareholders

(C) Board of directors

(d) None of the above

(13) The date of auditor's report should not be

(a) The date of AGM

(b) The date of appraisal of account by the board

(c Both (a) and (b)

(d) Earlier than the date on which the accounts are approved by the management

(14) If the auditor after verifying the necessary documents and books of accounts is satisfied regarding the correctness of the accounts, he gives a : 

(a) Qualified report

(b) Clean or unqualified report

(e) No opinion report

(d) Adverse report

(15) When an auditor expresses his opinion that the financial statements do not exhibit true and fair view of the state of affairs of the company, his report is said to be:

(a) Qualified report 

(b) Unqualified report

(c) No opinion report

(d) Negative report

(16) If on any point the auditor is not fully satisfied, he should suitably qualify in his Report Such report is:

(a) Unqualified report

(b) Qualified report

(c) No opinion report 

(d) Negative report

 (17) Banking companies carry business as per :

(a) Banking Regulation Act 

(b) Companies Act

(c) Co-operative Societies Act

(d) All the above

(18) Solvency margin is excess of

(a) Assets over liabilities

(b) Liabilities over assets

(c) Current assets over current liabilities

(d) All of the above

(19) Insurance business is regulated by: 

(a) Banking Companies Act

(b) Co-operative Societies Act 

(c) IRDA

(d) All of the above

(20) A demand loan is considered NPA after:

(a) 45 days 

(b) 30 days

(c) 90 days

(d) 120 days

Click here for Short questions in Section B