MCQS on Banking and Insurance (Part-7 121 to 140)

 121. Which among the following is not a function of the auditor? 

a) Checking errors and frauds 

b) Vouching with original documents 

c) Preparing final Accounts 

d) Both a&b 

122. The scope of auditing does not cover. 

a) Vouching 

b) Checking arithmetical accuracy 

c) Ledger posting 

123. Which among the following is an example of intangible asset? 

a) Goodwill 

b) Patents 

c) All of these 

d) None of the above 

124. Investigation is required when 

a) Fraud is suspected in business 

b) On acquisition of running business 

c) All of them 

125. Preliminary expanses not written off are treated as 

a) Fixed assets 

b) Intangible assets 

c) Fictitious assets 

d) None of the above 

126. A fixed audit programme is also called a _____ programme 

a) Tailor made 

b) Man made 

c) Auditor made 

d) Skeleton 

 127. A progressive audit programme is also called a _____ programme 

a) Tailor made 

b) Man made 

c) Auditor made 

d) Skeleton 

128. Current audit file consists of _________. 

a) Matters of future importance 

b) Matters relations to post years 

c) Matters relating to the year of audit 

129. Test checking is done when there is an effective system of ________. 

a) Internal control 

b) Internal audit 

c) Internal check 

d) External audit 

130. Partial auditing is usually done by 

a) Sole trading concern 

b) Joint stock company 

 c) Govt. department 

 131. Balance remaining in the forfeited Account after reissue is transferred to _______ account 

a) General reserve 

b) Capital reserve 

c) Premium account 

132. Criminal liability of an auditor implies liability for 

a) Misstatement in prospectus 

b) Failure to assist investigation 

c) Failure to assist prosecution of guilty officers 

d) All of the above 

133. Statutory liabilities of an auditor include ________. 

a) Liability under Companies Act 2013 

b) Liability under the Indian Penal Code 

c) Both a&b 

d) None of the above 

134. Powers and rights of an auditor include ________. 

a) Right of access to the books of account 

b) Right to obtain information and explanation from officers 

c) Right to attend general meeting 

d) All of the above 

135. ______ assets are those which may or may not materialise as assets in the future. 

a) Tangible assets 

b) Intangible assets 

c) Contingent assets 

d) None of the above 

136. Copy right should be revalued at the date of the ________. 

a) Balance sheet 

b) Audit report 

c) Internal check 

d) None of the above 

137. ______ assets are those assets which have no value but represent only expenditure or loss 

a) Wasting assets 

b) Fictitious assets 

c) Intangible assets 

d) Circulating assets 

138. _____ is the value which would be realised if a particular asset is sold when it has become out of date or unserviceable. 

a) Replacement value

 b) Scrap value 

c) Market value 

d) Book value 

139. Vouching is done ______. 

a) End of the year 

b) Throughout the year 

c) Beginning of the year 

d) None of the above 

140. The auditing standards consist of ________. 

a) Basic postulates 

b) General standards 

c) Field standards 

d) All of the above