Explore topic-wise MCQs in Bachelor of Commerce (B Com).

This section includes 140 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Commerce (B Com) knowledge and support exam preparation. Choose a topic below to get started.

51.

For the purposes of section 224(IB) the number of partners of a firm which shall be taken into account would be as on the date of _

A. Completion of audit
B. Auditor s report
C. Acceptance of audit
D. Starting of audit work
Answer» D. Starting of audit work
Discussion
52.

Which of the following statements is not correct regarding removal of first auditor before expiry of the term?

A. He is removed at a general meeting
B. The shareholders are authorized to do so
C. The approval of the Central Government is required for such removal
D. The provisions for such removal are contained in section 224(7)
Answer» D. The provisions for such removal are contained in section 224(7)
Discussion
53.

Which of the following is counted for the purposes of section 224(IB) the number of partners of a firm which shall be taken into account would be as on the data of ___

A. Joint audit
B. Audit to non-profit companies
C. Audit of unlimited companies
D. All of the above
Answer» E.
Discussion
54.

Mr. A, a Charted Accountant, has nineteen audits, Out of following audits which audits should he accept to ensure he doesn t violate provisions of section 224(IB) __

A. Audit of a private company
B. Audit of branch of a foreign company
C. Audit of two branches of an Indian company
D. All of them
Answer» E.
Discussion
55.

Which audit out of the following would not be regarded as one audit for the purposes of section 224(IB)?

A. Audit of one branch each of two different companies
B. Joint audit
C. Audit head office & branches
D. Audit of one or more branches of a company
Answer» B. Joint audit
Discussion
56.

The auditor of a Government company is appointed by the C & AG. His remuneration is fixed by__

A. The C & AG
B. The shareholders
C. The shareholders at an annual general meeting
D. The board of directors
Answer» C. The shareholders at an annual general meeting
Discussion
57.

The principal auditor, as per clarification issued by the ICAI, does not have any right to

A. Inspect working papers of the branch auditor
B. Visit branches
C. Seek information necessary for audit purposes
D. Incorporate the branch audit report in his audit report
Answer» B. Visit branches
Discussion
58.

The auditor has to enquire, under section 227 (IA) into different aspects, related to shares allotted for cash for the purpose of auditor include

A. Shares against whose allotment cash has actually been received
B. Shares allotted for consideration other than cash
C. Shares allotted against a debt payable
D. All of them
Answer» E.
Discussion
59.

Under which of the following section auditor has a duty to enquire into six specified matters and report by exception?

A. Section 227(4A)
B. Section 227 (IA)
C. Section 227 (2)
D. Section 227(3)
Answer» B. Section 227 (IA)
Discussion
60.

When a transaction has not been recorded in the books of account either wholly or partially such errors are called as _________.

A. errors of commission
B. errors of omission
C. compensating error
D. error of principle
Answer» C. compensating error
Discussion
61.

Goods sent on approval basis have been recorded as Credit sales . This is an example of _

A. Error of principle
B. Error of commission
C. Error of omission
D. Error of duplication
Answer» B. Error of commission
Discussion
62.

A number of checks and controls exercised in a business to ensure its efficient working are known as ________.

A. Internal Check
B. Internal Control
C. Internal Audit
D. Interim Check
Answer» C. Internal Audit
Discussion
63.

Which of the following is not a fact of EPA ?

A. Economic audit.
B. Efficiency audit.
C. Expenditure audit.
D. Effectiveness audit.
Answer» D. Effectiveness audit.
Discussion
64.

Verification of the value of assets, liabilities, the balance of reserves, provision and the amount of profit earned or loss suffered a firm is called _________.

A. continuous audit
B. balance sheet audit.
C. interim audit
D. partial audit
Answer» C. interim audit
Discussion
65.

A remuneration of a company auditor is fixed by the

A. Shareholders
B. Board of directors
C. Central Government
D. Appointing authority
Answer» E.
Discussion
66.

When issuing unqualified opinion the auditor who evaluates the audit findings should be satisfied that the :

A. Amount of known miss-statement is documented in working papers.
B. Estimates of the total likely misstatement are less than materiality level.
C. Estimated of the total likely misstatement is more than materiality level.
D. Estimates of the total likely misstatement cannot be made.
Answer» C. Estimated of the total likely misstatement is more than materiality level.
Discussion
67.

The audit program is prepared by

A. The auditor
B. The client
C. The audit assistants
D. Auditor & his assistants
Answer» E.
Discussion
68.

A company auditor should see that the dividend is paid

A. After charging depreciation
B. Without charging depreciation
C. Out of capital
D. None of the above.
Answer» B. Without charging depreciation
Discussion
69.

Valuation is the basis of :

A. Verification.
B. Marketing.
C. Internal checking.
D. Vouching.
Answer» B. Marketing.
Discussion
70.

AAS refers to

A. Audit evidence
B. Audit Planning
C. Risk assessments &Internal control
D. Knowledge of business
Answer» E.
Discussion
71.

Auditor in general is

A. Employee of the company
B. Agent of the company
C. Agent of the shareholders
D. None of the above
Answer» D. None of the above
Discussion
72.

Which of the following statements is not correct regarding removal of first auditor before expiry of the term?

A. He is removed at general meeting
B. Shareholders are authorized to do so
C. The approval of central government is required for such removal
D. The provision for such removal is contained in Section 224 (7)
Answer» D. The provision for such removal is contained in Section 224 (7)
Discussion
73.

Audit of Banks is an example of

A. Statutory Audit
B. Balance Sheet Audit
C. Concurrent Audit
D. All of above
Answer» E.
Discussion
74.

Sale of Rs.50,000 to A was entered as a sale to B . This is an example of

A. Error of omission
B. Error of commission (
C. Compensating error
D. Error of Principle.
Answer» C. Compensating error
Discussion
75.

Which of the following is not a duty of an auditor?

A. Duty to report company s banker
B. Duty to report to the members
C. Duty to sign the audit report
D. Duty to report on any violation of law
Answer» B. Duty to report to the members
Discussion
76.

Cost Audit under Section 233(B) of The Company Act is _____

A. Voluntary
B. Compulsory
C. Advisable.
D. Avoidable
Answer» D. Avoidable
Discussion
77.

Auditor is not valuer. This statement was stated in

A. Kingston Cotton Mill Case
B. London & General Bank Case
C. Lee VS Neuchatel Co. LTD Case
D. London Oil Storage Co.LTD Case
Answer» B. London & General Bank Case
Discussion
78.

An internal auditor is :

A. Temporary Employee.
B. Permanent Employee.
C. Daily Wager.
D. None of the above.
Answer» C. Daily Wager.
Discussion
79.

Undervaluation of stock is

A. Technical error
B. Compensatory error
C. Error of principle
D. none of these
Answer» D. none of these
Discussion
80.

Voucher relates to:

A. Cash receipt.
B. Cash payment.
C. Credit transactions.
D. All the above.
Answer» B. Cash payment.
Discussion
81.

Internal auditor is appointed by

A. The management
B. The shareholders
C. The government
D. statutory body
Answer» B. The shareholders
Discussion
82.

Audit Note Book contains: ---------------------------------------------------------

A. Various dates of reference.
B. Details of work done.
C. Notes regarding item requiring clarification, explanations, etc.
D. All of the above.
Answer» E.
Discussion
83.

Which of the following has a broader scope?

A. Internal Control.
B. Internal Audit.
C. Internal Checking.
D. None of the above.
Answer» E.
Discussion
84.

The first auditor or auditors are appointed by :

A. Central Government.
B. Company Law Board.
C. Board of Directors.
D. Shareholders.
Answer» D. Shareholders.
Discussion
85.

Valuation is the base of:

A. Verification.
B. Marketing.
C. Internal checking.
D. Vouching.
Answer» B. Marketing.
Discussion
86.

Under check system principle of_________ is followed.

A. Division of labour
B. Division of work
C. Principle of scalar chain
D. Accountancy
Answer» B. Division of work
Discussion
87.

Voucher relates to :

A. Cash receipt.
B. Cash payment.
C. Credit transactions.
D. All the above.
Answer» E.
Discussion
88.

A number of checks & controls exercised in a business to ensure its efficient working is known as :

A. Internal check.
B. Internal control.
C. Internal audit.
D. Interim check.
Answer» B. Internal control.
Discussion
89.

Retiring auditor does not have right to

A. Make written representations
B. Get his representation circulated
C. Be heard at the meeting
D. Speak as member of company
Answer» B. Get his representation circulated
Discussion
90.

Internal auditor is appointed by :

A. The management.
B. The shareholders.
C. The government.
D. The statutory body.
Answer» B. The shareholders.
Discussion
91.

Internal check is meant for :

A. Prevention of frauds.
B. Detection of frauds.
C. Helping audit in depth.
D. Detection of errors.
Answer» D. Detection of errors.
Discussion
92.

Auditing begins where -------- ends.

A. Selling.
B. Inventory valuation.
C. Accounting.
D. Purchases.
Answer» D. Purchases.
Discussion
93.

The work of one clerk is automatically check by another clerk is called :

A. Internal control.
B. Internal check.
C. Internal audit.
D. None of the above.
Answer» C. Internal audit.
Discussion
94.

A good audit report must at least meet one of the following qualifications:

A. It should offer constructive and timely suggestions to the management.
B. It should not point out mistakes.
C. It should not be based on factual information.
D. It should not be based on balance sheet.
Answer» B. It should not point out mistakes.
Discussion
95.

The main object of vouching is :

A. To prepare trial balance.
B. Conduct routine checking.
C. Verify authenticity & authority of transactions.
D. Checking of vouchers.
Answer» D. Checking of vouchers.
Discussion
96.

The panel of Auditors of cooperative society is maintained by

A. Charted Accountant
B. Central Government
C. Registrar
D. Shareholders
Answer» D. Shareholders
Discussion
97.

The owners of the company are called:

A. Debenture holders.
B. Debtors.
C. Shareholders.
D. None of the above.
Answer» D. None of the above.
Discussion
98.

First auditor of the company is appointed by the

A. Shareholders
B. Central government
C. Company law board
D. Board of directors
Answer» E.
Discussion
99.

Who among the following can be appointed as the auditor of company?

A. A partner or the director of the company
B. A person of unsound mind
C. Mr. Y who owes Rs.500 to company
D. Mr. Z who holds the CA Certificate
Answer» E.
Discussion
100.

Auditor of a _____ company does not have right to visit foreign branches of company.

A. Unlimited Company
B. Manufacturing Company
C. Banking Company
D. Non-Profit making company
Answer» C. Banking Company
Discussion