Practice Test

Q1) The following points should be noted or checked by the auditor in vouching Show Answer

Q2) Checking serial no. of vouchers during vouching helps the auditor to Show Answer

Q3) Checking the head of account debited or credited during vouching helps the auditor to Show Answer

Q4) Checking the amount in words during vouching of cash transactions helps the auditor Show Answer

Q5) Verifying the signature of the authorized official on the voucher during vouching helps the auditor to check the Show Answer

Q6) Checking the serial no. of vouchers on the voucher during vouching helps the auditor to obtain evidence that Show Answer

Q7) Checking the date of voucher on the voucher during vouching mainly helps the auditor to obtain evidence that Show Answer

Q8) Verifying the signature of the person preparing the voucher helps the auditor to Show Answer

Q9) Checking the signature of the payee during vouching of cash payments helps the auditor to Show Answer

Q10) Serial no. of supporting bill from supplier attached with a voucher helps the auditor to Show Answer

Q11) Verifying the signature on the supporting purchase bill attached to a voucher helps the auditor to Show Answer

Q12) Checking the date of entry of voucher in the books mainly helps the auditor to obtain evidence that Show Answer

Q13) which of the following documents is not relevant for vouching sales Show Answer

Q14) To check whether all sales have been recorded auditor should check Show Answer

Q15) In order to vouch which of the transactions the auditor will examine bill of lading Show Answer

Q16) In order to vouch which of the transactions the auditor will examine bill of entry Show Answer

Q17) In case of sales return the auditor should examine which document Show Answer

Q18) _______means comparing the entries in books of accounts with documentary evidence In support thereof Show Answer

Q19) As soon as any transaction takes place, a ______is prepared giving details of the transaction Show Answer

Q20) Purchase bill is an example of _____document Show Answer

Q21) Payroll is an example of _________document Show Answer

Q22) Date of the voucher is checked to see that the transaction pertains to the ________year Show Answer

Q23) The amount in ______in a voucher helps to prevent alteration of amount in figures Show Answer

Q24) The payee should sign on a _______stamp if the payment exceeds Rs.5, 000 Show Answer

Q25) Checking the date of entry helps to prevent and detect frauds in the nature of ____-and ____ Show Answer

Q26) The auditor of a company has to comment in his report in case of sales to group concerns whether the rates charged to such group concerns are ______ or not with regard to the prevailing market prices at the relevant time Show Answer

Q27) The dividend received should be vouched from the following supporting documents i) _________of dividend warrants, ii) _______ for deposits bank account Show Answer

Q28) When goods are sent on approval sale is to be booked only when the inspection or installation is complete and the buyer has accepted the goods. Show Answer

Q29) Goods are sent on approval. If the buyer has not formally sent a letter of acceptance the sale can be booked if the buyer has not sent back the goods within a reasonable period Show Answer

Q30) When the goods are sent to an agent on consignment basis sales should be booked when the agent actually receives the goods. Show Answer

Q31) The sales returns should be supported by either the copy of credit note of the client or debit note of the customer Show Answer

Q32) If the amount of sales returns is heavy in the beginning of the year it may indicate that fictitious sales were booked last year Show Answer

Q33) Auditor should ensure that the value of goods returned is disclosed separately in the profit and loss account Show Answer

Q34) Auditor should ensure that the recovery of bad debt earlier written off is credited to the concerned debtor's account Show Answer

Q35) A statutory auditor is not mainly concerned that prevailing market price is charged uniformly to all customers Show Answer

Q36) The auditor has to comment in his report in case of sales to group concerns whether the rates charged to such group concerns are reasonable or not with regard to the prevailing market prices at the relevant time Show Answer

Q37) If tax is deducted at source (TDS)from interest auditor should see that interest is shown in the accounts net of TDS. Show Answer

Q38) Auditor should verify whether the payee has signed on a revenue stamp if the sum exceeds Rs.50. Show Answer

Q39) Auditor need not check the goods received note in case of cash purchases. Show Answer

Q40) The purchase returns should be supported by the copy of debit note of either the auditee or the supplier. Show Answer

Q41) While checking purchase returns auditor should see that the serial numbers on the credit notes are continuous and tally with those in the credit note register. Show Answer

Q42) While checking purchase returns auditor should check the corresponding goods received note Show Answer

Q43) While checking sales returns auditor should check the corresponding delivery challan. Show Answer

Q44) Auditor should ensure that remuneration to directors is disclosed separately and it is within the limits prescribed under the companies act. Show Answer

Q45) Deferred advertisement expenses should be disclosed under miscellaneous expenditure in the balance sheet. Show Answer

Q46) Grade the following audit evidence in terms of reliability (starting with lowest reliability
(1) Oral explanations
(2) Documents
(3) External documents
(4) Internal documents when internal controls are strong
(5) Internal documents Show Answer

Q47) Which document is not relevant for vouching cash sales Show Answer

Q48) The payee should sign on the revenue stamp, if payment exceed Rs. ______. Show Answer

Q49) For vouching of which item the auditor is most likely to examine cost record Show Answer

Q50) The auditor should examine subsequence realisation of revenue to Show Answer

Q51) An auditor conducts a surprise check on the per day so as Show Answer

Q52) To test whether cash sales have been recorded the augitor should draw a sample from a file of Show Answer

Q53) In Cases of unclaimed dividend, the auditor should examine whether Show Answer

Q54) Which of the following would prevent double payment of the same voucher? Show Answer

Q55) the auditor will examine sales invoice for Vouching Show Answer

Q56) Which vouching how will the auditor ensure himself that all credit sales transactions are recorded properly? Show Answer

Q57) The voucher need to be Show Answer

Q58) In case of sales return, the auditor should examine which documents Show Answer

Q59) Cash sales is vouched on the basis of Show Answer

Q60) Which of the following is most critical to a purchase department Show Answer

Q61) Cash purchase is vouched on the basis of Show Answer

Q62) The auditor is most likely to examine related party transactions very carefully while vouching Show Answer

Q63) Amount deposited into bank is vouched on the basis of Show Answer

Q64) The creditor's accounts generally have credit balances. Debit balance may be due to Show Answer

Q65) Outstanding rent is vouched on the basis of Show Answer

Q66) which of the following documents is not relevant for vouching sales Show Answer

Q67) Amount received on sale of investment is credited to Show Answer

Q68) To check whether all sale has been recorded, auditor should check Show Answer

Q69) Commission received is vouched on the basis of Show Answer

Q70) Bill of lading is evidence of Show Answer

Q71) Salary is vouched on the basis of Show Answer

Q72) Bill of entry is evidence of Show Answer

Q73) Bank charges are vouched on the basis of Show Answer

Q74) Sales commission is vouched on the basis of Show Answer

Q75) Wages and salary should be vouched on the basis of Show Answer

Q76) Telephone charges should be examined on the basis of Show Answer

Q77) The act of ______ vouchers is referred to as vouching. Show Answer