MCQS on Banking and Insurance (Part-8 141 to 160)

 141. ______ audit is the process of evaluating a firm’s various operating procedures, code of conduct, and other factors to determine its effect on the society. 

a) Cost audit 

b) Performance audit 

c) Social audit 

d) Tax audit 

142. ______ is an audit based on ownership 

a) Financial audit 

b) Secretarial audit 

c) Trust audit 

d) None of the above 

143. ______ is a method of obtaining audit evidence. 

a) Observation 

b) Inspection 

c) Computation 

d) All of the above 

144. _______ determine whether the layout satisfies certain rules specified by the fabrication team 

a) Logical Equivalence Checking 

b) Design Rule Check 

c) Layout Versus Schematic 

d) None of the above 

145. ______ is a type of voucher. 

a) Template voucher 

b) Adjustment voucher 

c) Reversal voucher 

d) All of the above 

146. ______ is a method of valuing the assts on the basis of purchase price of the assets. 

a) Base stock method 

b) Market value method 

c) Cost method 

d) None of the above 

147. What are the techniques of verification? 

a) Inspection 

 b) Observation 

c) Confirmation 

d) All of the above 

148. If the statutory time limit of _____ years is over, the money being in Unclaimed Dividend Account is transferred to the Central Government with details of shareholders who have not claimed the dividend. 

a) 3 

b) 4 

c) 1 

d) 7 

149. Total fixed deposits should not exceed ____% of paid up share capital and free reserves. 

a) 20 

b) 25 

c) 15 

d) 10 

150. Fixed deposits received along with accrued and due interest would be shown under _______. 

a) Unsecured loans 

b) Secured loans 

c) Doubtful debts 

d) None of the above 

151. An auditor of a company has a right to be indemnified, out of the assets of the company, for any liability incurred by him in defending himself against any civil or criminal proceedings by the company, provided the judgment is in his favour. 

a) True 

b) False 

152. Government have established the __________, a specialized, multidisciplinary organization to deal with cases of corporate fraud. 

a) Fraud Investigation Office (FIO) 

b) Serious Frauds Investigation Office (SFIO) 

c) Corporate Frauds Investigation Office (CFIO) 

d) None of the above 

153. Where the investigation is to be done on behalf of a limited company desiring to buy another established concern, the investigator will be required to examine ________. 

a) Corporate security 

b) Goodwill 

c) Human resources 

d) None of the above 

154. An audit conducted throughout the year or at the regular intervals of time is known as _________. a) Continuous audit 

b) Internal audit 

c) Statutory audit 

d) External audit 

155. __________ is a risk that the practitioner expresses an inappropriate conclusion when the subject matter information is materially misstated. 

a) Assurance Engagement Risk 

b) Assurance Relevance Risk 

c) Assurance judgment Risk 

d) None of the above 

 156. _______ refer to specific accounting controls relating to particular transactions and data in each computer-based application system. 

a) General controls 

b) Application controls 

c) System control 

d) None of the above 

157. The time spent by each worker should be correctly recorded in the _________. 

a) Attendance card 

b) Time record book 

c) Time recording clock 

d) None of the above 

158. Objective of internal check with regard to wages is __________. 

a) To avoid inclusion of dummy workers in the list of workers 

b) To avoid errors in the wage sheet 

c) To ensure the correctness of time cards and piece work cards 

d) All of the above 

159. In big organizations, generally ___________ employed to push sales and to collect debt. 

a) Travelling agents

 b) Marketing executive 

c) Salesman 

d) None of the above 

160. Cash sales can be done through ________. 

a) Sales at the counter 

b) Sales by travelling agents 

c) Postal sales 

d) All of the above