Auditing MCQs

This part of the PSCMCQs platform provides MCQs for the preparation of auditing subjects. It provides MCQs for FPSC, NTS, PPSC, BPSC, OTS, AJKPSC, KPKPSC, SPSC, etc. The topics of this part are, company audit, the importance of auditing, types of auditors and why an audit is important, auditing mcq, which is not the function of an auditor, mcq on auditing, auditing multiple choice questions and answers pdf, auditing solved mcqs pdf, joint audit implies, auditing is compulsory for, final audit implies, audit means, auditing mcq pdf download b com, audit of banks is an example of.

A. A process of investigating the books of accounts.
B. Accountability of staff.
C. Investigating the corrupt activities of staff.
D. None of these.

Brief facts about Auditing:

Auditing also refers to investigating the books of accounts i.e. Balance sheet and profit and loss accounts as well as vouchers of the business etc. This process is taken to investigate any incompliance of the laws, rules, and regulations in a firm. In this way, the auditors perform the functions of a watchdog.

A. To check accounting principles are followed.
B. To check the financial rules are followed.
C. To check materiality in financial statements.
D. All of the above

Brief Facts:

Auditors are not responsible for digging out the corruption in a company. They only give a fair view of the financial statements of a company. Because auditors check the accounts and other financial statements of a company by taking a specific sample. Therefore, they are not investigating the entire record due to which it becomes very difficult for them to give a complete view of a company.

A. International accounting board.
B. International Federation of Accountants.
C. International standards board.
D. None of these

Brief facts about the International Federation of Accountants:

The International Federation of Accountants or commonly known as (IFA) is the global advocacy organization for the accountancy profession. Mainly for the financial accounting and auditing professions. The purpose of this organization is to strengthen the worldwide accountancy profession. The current president’s name is  In-Ki Joo (from November 2018). It was founded on October 7, 1977, and its Headquarters location is New York.
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A. Maintaining account
B. Maintaining internal controls
C. Providing information to auditors
D. Reporting to the shareholders on the accuracy of the accounts

Brief Facts:

Directors are the stakeholders as well as at the same time owners of the company along with the shareholders. They are responsible to watch the affairs of the business on behalf of large numbers of shareholders. In respect of sharing the accuracy of accounts with the shareholders, it is the responsibility of the accountant and auditor of the company to share such information with the shareholders.

A. Controller General of Pakistan
B. Accountant General of Pakistan
C. Auditor General of Pakistan
D. None of these

Brief Facts about Auditor General of Pakistan:

The Auditor General of Pakistan is the primary institute of auditing in Pakistan. It is responsible for auditing the accounts of federal, provincial, and local governments. Auditor General of Pakistan is a 22 plus 1 grade post and it is a constitutional post in Pakistan. The Auditor General of Pakistan has the head office in Islamabad and there are sub-offices in provincial capitals as well as in divisions and districts.

A. Director will own the assets.
B. Director will invest the money.
C. Director will safeguard the assets on behalf of shareholders.
D. None of these.

Brief facts about Stewardship:

In company business, the idea of stewardship refers to that the Director will safeguard the assets on behalf of shareholders. Stewardship is the concept that is mostly used in companies to manage the affairs of the companies on behalf of the shareholders.
Also Read: Senior Auditor Auditing MCQs

A. Embezzlement
B. Lapping
C. Corruption
D. None of these

Brief facts about Lapping:

The delaying tactic to record the cash due to a shortage of cash is known as Lapping. , Moreover, a lapping scheme is a form of accounting fraud whereby stolen or misappropriated cash is obscured by altering the accounts receivable. A forensic accounting audit of cash receipts can be undertaken to reveal a lapping scheme, which may show the increased age of accounts receivables.
Also Read: Auditing MCQs for Senior Auditor

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