Utilizing MCQs is considered an effective method to assess a student’s understanding of a concept. The auditing MCQs are available on GuruMcQs.com  and prepared by subject experts, aligning with current trends and practices. These MCQs are particularly beneficial for competitive examinations and tests such as PPSC, FPSC, SPSC, KPPSC, BPSC, and ETEA. They are also valuable for various job positions like Senior Auditor, Junior Auditor, Accountant, Internal Auditors, and External Auditors. Covering topics such as Basic Auditing, Financial Audit, Income Tax Audit, Internal Audit, Operational Auditing, and more, these MCQs offer comprehensive preparation. Additionally, you can find Cost Accounting MCQs with answers on the platform.

61. Scope of financial audit is__________?

A. Financial information
B. Non-financial information
C. Both (a) and (b)
D. None of these

62. IFRS 9 explains about?

A. Inventory
B. Accounts Payable
C. Accounts Receivable
D. Expenses

63. Audit fess is a part of__________.

A. works on cost.
B. selling overhead.
C. distribution overhead.
D. administration overhead

64. Audit in depth is synonymous for­_____________?

A. Complete audit
B. Completed audit
C. Final audit
D. Detailed audit

65. Balance sheet audit includes verification of____________?

A. Assets
C. Income and expense accounts where appropriate
B. Liabilities
D. All of the above

66. Which of the following statements is not true about continuous audit?

A. It is conducted at regular interval
B. It may be carried out on daily basis
C. It is needed when the organization has a good internal control system
D. It is expensive

67. Balance sheet does not include­:_____________?

A. Verification of assets and liabilities
B. Vouching of income and expense accounts related to assets and liabilities
C. Examination of adjusting and closing entries
D. Routine checks

68. Which of the following statements is not correct about materiality?

A. Materiality is a relative concept
B. Materiality judgments involve both quantitative and qualitative judgments
C. Auditor’s consideration of materiality is influenced by the auditor’s perception of the needs of an informed decision maker who will rely on the financial statements
D. At the planning state, the auditor considers materiality at the financial statement level
only

69. _______the audit risk,_______the materiality and _______the audit effort?

A. Lower, Higher, Lower
B. Lower, Lower, Higher
C. Higher, Lower, Lower
D. Lower, Higher, Higher

70. When issuing unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the_____________?

A. Amount of known misstatement is documented in working papers
B. Estimates of the total likely misstatement is less than materiality level
C. Estimate of the total likely misstatement is more than materially level
D. Estimates of the total likely misstatement cannot be made