1. Management audit otherwise called as _______efficiency audit.

2. A number of checks and controls exercised in a business to ensure its efficient working is known as ---
---------- Internal control.
3. The work of one clerk is automatically check by another clerk is called _________. Internal check.
4. Internal check is meant for ___________Prevention of frauds
5. A kind of audit conducted for a part of the accounting year is called ------Periodical audit
6. For which of the following, Audit is optional? ---------Proprietorship concern.
7. Auditing standards differ from auditing procedures in that procedures relate to ________Acts to be
performed
8. Confirmation of the court is necessary for __________.Reduction Of Share Capital
9. Profit prior to incorporation may be utilized to ___________Write Of Goodwill
10. An audit programme is ___________. The rules and regulations prescribed for writing up the books of
accounts.
11. One of the audit procedures to check the issue of share capital of the newly formed company is -----
MOA & AOA
12. Capital reserves are created out of profits of ------- a capital nature.
13. Verification is __________ the act of establishing the accuracy of entries in the books of accounts
14. Internal controls and internal check are ____________internal control includes internal check.
15. Special audit is necessary for ------- inefficient concern
16. A company auditor can be removed by _________________General Meeting
17. A vacancy caused by resignation of an auditor is filled by _________General Meeting
18. Audit in depth means _________intensive audit of a few items.
19. Audit in depth is synonymous for____________? Detailed audit
20. Management audit otherwise called as _______Efficiency audit.
21. Before the work of audit is commenced, the auditor plans out the whole of audit work is called
_________. Audit programme.
22. Preliminary Exp...are the best example of----------Fictitious assets
23. Concealment of shortage by delaying the recording of cash receipts is known
as_____________? Lapping
24. The fundamental objective of the audit of a company is to_____________? Attest to
the credibility of the company’s accounts
25. The concept of stewardship means that a company’s directors________________?
Safeguard the company’s assets and manage them on behalf of the shareholders
26. Why do auditors concentrate their efforts on material items in accounts?------------------
Because the risk to the accounts of their being incorrectly stated is greater
27. Which of the following is NOT the responsibility of a company’s directors?------------
Reporting to the shareholders on the accuracy of the accounts
28. The independent auditor’s primary responsibility is to______________? the
shareholders
29. Audit risk is composed of 3 factors. Which of the following is NOT one of those
factors? -----------Not compliance risk. ( Detection risk, Control risk & Inherent risk)
30. Which of the following is NOT an accepted method of selection in sampling? -------------
----- Not Pervasive selection.
( Random selection, Systematic selection& Haphazard selection )
31. According to ISA 500, the strength of audit evidence is determined by which two
qualities?-------- Sufficiency & appropriateness
32. Which of the following is normally the most reliable source of audit evidence?--------
Supplier’s Statement
33. Concurrent audit is a part of____________? Internal audit system
34. Errors of Omission are_____________? Technical Error
35. Window dressing implies_______________? Over Valuation of assets
36. Verification refers to_________? Examining the physical existence and valuation of
assets.
37. Which Statement generally, correct about the reliability of audit evidence?---------------
Effective internal control system provides reliable audit evidence
38. The nature, timing and extent of substantive procedures is related to assessed level of
control risk------------------Directly
39. the primary purpose of audit programme preparation? ------------------- To gather
sufficient
40. The quantity of audit working papers complied on engagement would most be
affected by__________? Auditor’s experience and professional judgment
41. For what minimum period should audit working papers be retained by audit firm?-------
---- For a period auditor opines them to be useful in servicing the client
42. Which statement is true regarding an auditor’s working papers?--------------- They
should be considered as the principle support for the auditor’s report
43. The current file of the auditor’s working papers, generally, should
include____________? A copy of financial statements