Auditing Principles and Practice - K1-Level Questions - UNIT I-UNIT IV

Oct 3, 2026

Uploaded by aboduw

Auditing Principles and Practice K1-Level Questions set out core concepts and terminology used in auditing and verification of financial records. The questions cover the origin and meaning of “audit,” objectives of auditing, types of audits, and the audit appointment and qualification rules for company auditors. It also tests understanding of vouching, verification procedures, valuation of assets, and related supporting documents for evidence.

LanguageEnglish

CategoryExam

FormatPDF

Pages18

Reading Time45 min

AccessFree to download

UNIT – I

Foundations and objectives of auditing

Types of audit and audit appointment

UNIT-II

Vouching and evidences

Cash, vouchers, and supporting documents

UNIT-III

Verification and valuation of assets

Stock, fixed assets, and book debts

UNIT-IV

Company auditor appointment and eligibility

AUDITING PRINCIPLES AND PRACTICE-17UCO514 K1-LEVEL QUESTIONS UNIT – I 1. The term “Audit” originated from the Latin word. (a) Audire (b) Adhere (c) Adihere (d) None of the above 2. is a systematic examination of the books and records or a business. (a) Auditing (b) Vouching (c) Verification (d) Checking. 3. the following are not objectives of auditing. (a). Ascertain the profit and preparation of P/L Account, Balance sheet. (b) Detection and prevention of frauds and errors. (c) Give a true and fair view of financial amount. (d) To submits the accounts to Government of India. 4. the following is not a kind of audit. (a) Statutory and private audit. (b) Government and continuous audit. (c) Continuous, final, Interim, Cash, Cost and Management audit. (d) None of these. 5. An audit which is compulsory by the law . (a) Government audit. (b) Internal audit. (c) Cost audit. (d) Statutory audit. 6. Instruction of audit issued by controller and auditor general of India . (a) Statutory audit. (b) Final audit. (c) Management audit. (d) Government audit. 7. Audit done by the employees of the business undertaking is called . (a) Final audit. (b) Management audit. (c) Government audit. (d) Statutory audit. 8. This kind of audit is conducted generally between two annual audit . (a) Internal audit. (b) Interim audit. (c) Final audit. (d) Continuous audit. 9. Management audit otherwise called as . (a) Final audit. (b) Efficiency audit. (c) Cost audit. (d) Cash audit. 10. The main object of an audit is . (a) Expression of opinion (b) Detection and Prevention of fraud and error (c) Both (a) and (b) (d) Depends on the type of audit UNIT-II 1. Process of checking the evidence of the entries called . (a) Verification (b) Observation (c) Vouching (d) Inspection 2. To verify cash transactions, it is necessary. (a) System of internal control (b) Check all transaction (c) Documentary evidence for every transaction (d) All of the above. 3. Total amount spent for advertisement expenses be verified from the (a) Receipts from the Medias or advertisement agency. (b) Fixed assets register (c) Debtors books (d) None of the above. 4. Vouching helps the auditors to ascertain whether the entries in the book , this is the basic objective of auditing. (a) True and fair (b) Only true (c) Only fair (d) None of the above. 5. Voucher should be addressed to the . (a) Auditor (b) Client (c) Employee (d) None of the above. 6. Serial number of vouchers should be . (a) Colored (b) Continuous (c) Even number (d) Odd number. 7. is/are an importance of vouching? (a) Ensures all items are disclosed in the financial statement as per Schedule VI provisions. (b) It helps to verify whether entries are passed as per acceptable accounting principles. (c) Helps in detection and prevention of errors & frauds. (d) All the above 8. Checking the head of account debited or credited during vouching helps the auditor to . (a) Detect errors of principle (b) Check whether accounting is proper. (c) Find errors of commission (d) All of the above 9. of the following can be accepted as a supporting document. (a) Invoice/Challan (b) Debit note/Credit note. (c) Emails/letters. (d) All of the above. 10. Checking the date of voucher on the voucher during vouching mainly helps the auditor to obtain evidence that . (a) The transaction relates to current year. (b) The transaction has taken place. (c) The transaction is genuine. (d) The transaction is legal. UNIT-III 1. Verification refers to a) Examination of journal and ledger b) Examination of vouchers related to assets c) Examining the physical existence and valuation of assets d) Calculation of value of assets 2. Object of verification of assets a) Physical verification of assets b) Checking value of assets c) Examining the authority of their acquisition d) All of the above 3.

FAQs

What does “audit” mean and where does the term originate?

“Audit” originated from the Latin word “Audire.” The unit questions focus on identifying the related terms.

Which are the basic objectives of auditing?

Auditing aims at providing a true and fair view of the financial statements and detecting and preventing frauds and errors.

How do vouching and verification differ in auditing?

Verification involves examining journal/ledger items and related evidence for assets, including physical existence and valuation. Vouching is used to check vouchers and obtain evidence about transactions, such as genuineness and legality.

Oct 3, 2026

Uploaded by aboduw