Audit and Taxation TYBCOM MCQ
Audit is the examination or inspection of various books of accounts by an auditor followed by physical checking of inventory to make sure that all departments are following documented system of recording transactions.
It is done to ascertain the accuracy of financial statements provided by the organization. Those students who have preparing the B.com annual year exam must solve these types of MCQ question papers to understand the type of exam.
Audit and Taxation TYBCOM Multiple Choice Questions
Taxation refers to the practice of a government collecting money from its citizens to pay for public services. Taxation is the practice of collecting taxes (money) from citizens based on their earnings and property.
1. An independent audit is important to readers of financial statements because it
a) Provides a measure of management’s stewardship function.
b) Measures and communicates the financial data included in financial statements.
c) Objectively examines and reports on management’s financial statements.
d) Reports on the accuracy of information in the financial statements.
2. The evidence available to auditor is _______ in nature, rather _______ in nature.
a) pervasive, conclusive
b) Conclusive, pervasive
c) limited, unlimited
d) None of the above
3. Compliance with the Standard of Auditing is the responsibility of
a) Management
b) Those charged with governance
c) Auditor
d) Audit committee
4. An auditor is required to determine the ____ of his audit procedures according to the requirements of Standards of Auditing.
a) Conduct
b) Nature , timing and extent
c) Limitation
d) Planning
5. The main object of an audit is
a) Expression of opinion
b) Detection and Prevention of fraud and error
c) Both (1) and (2)
d) Depends on the type of Business
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