Commerce MCQ Question and Answer

Commerce MCQ Question and Answer
211. Internal Audit is done by—
  • External Auditors
  • Employees of the organisation
  • Both (A) and (B)
  • Neither (A) nor (B)
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212. Audit Programme is prepared by—
  • The Auditor
  • The Company
  • Internal Auditor
  • Financial Controller
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213.  First Auditor of a Company is appointed by the—
  • Shareholders
  • Central Government
  • Company Law Board
  • Board of Directors
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214. Which of the following is not qualified to be a Company Auditor ?
  • A body corporate
  • An employee of the company
  • A person who is indebted to the company for an amount exceeding Rs. 1,000
  • All of the above
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215. Which of the following statement is correct ?
  • Valuation is a part of verification
  • Verification is a part of valuation
  • Valuation has nothing to do with verification
  • None of the above
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216. Test checking refers to—
  • Testing of accounting records
  • Testing of honesty of employees
  • Intensive checking of a select number of transactions
  • Checking of all transactions recorded
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217. Continuous audit is suitable for—
  • Big institutions
  • Small institutions
  • General institutions
  • None of the above
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218. The function of an Auditor is—
  • To examine arithmetical accuracy of accounts
  • To detect and prevent errors
  • To detect and prevent frauds
  • All of the above
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219. Audit is compulsory for—
  • Sole Trader
  • Partnership Firms
  • Joint Stock Companies
  • All of the above
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220. Match List-I with List-II of the following and select the correct answer from answer codes given below—
List-I
(a) At cost price
(b) At market price
(c) Intrinsic value method
(d) Average profit method
List-II
1. Valuation of shares
2. Perishable goods
3. Raw material
4. Valuation of Goodwill
Codes :
  • 3 2 1 4
  • 1 2 3 4
  • 4 3 2 1
  • 1 4 3 2
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