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7. The time required and costs involved in an external audit are much higher as compared to internal
audits.
1. A. True
2. B. False
8. Audit is a fact-finding process that compares actual results with
………………….
A. specified standards and plans
B. expected results
C. premature results
D. preliminary results
9. The ……… is also expected to provide the resources needed and
select staff members to accompany the auditors.
A. auditor
B. client
C. internal auditor
D. auditee
10. For the benefit of the organisation, quality auditing should
only report non-conformances and corrective actions, but should
not highlight areas of good practice.
A. True
B. False
11. Who among the following can be appointed as auditor of a
company?
A. A partner or a director of the company.
B. A person of unsound mind.
C. Mr. Y who owes Rs. 500 to the company.
D. Mr. Z the holder of C.A certificate.
12. Confirmation of the court is necessary for __________.
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37. An auditor who accepts an audit but does not posses the
industry expertise of the business entity should ______________.
A. engage experts.
B. obtain knowledge of matters that relate to the nature of entity
business.
C. inform management about it.
D. take help of other auditors.
38. Audit of banks is an example of __________.
A. Statutory audit.
B. Balance sheet audit.
C. Concurrent audit.
D. All of the above.
39. In India balance sheet audit is synonymous to _______________.
A. Annual audit.
B. Continuous audit.
C. Detailed audit.
D. Statutory audit.
40. Balance sheet audit included verification of ________.
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