Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Fundamentals of Accounting and Auditing Total Number of Question: 40 Time: 41 Minutes Please check your email after completion of test for result. All the best... Name Phone No Email State 1. A disclaimer of opinion is issued when: The financial statements are materially misstated The auditor is unable to obtain sufficient audit evidence The company reports a net loss The auditor is satisfied with the financial statements None 2. Which of the following is an example of an asset that requires physical verification? Accounts Receivable Cash at Bank Plant and Machinery Goodwill None 3. The audit report is issued by: Management Internal Auditor Statutory Auditor Shareholders None 4. SA 200 relates to: Audit Planning Responsibilities of an Auditor Going Concern Fraud Detection None 5. A professional auditor must avoid: Independence Objectivity Conflict of Interest Due Care None 6. Which fundamental principle is followed in auditing? Confidentiality Professional Skepticism Integrity All of the above None 7. Which organization issues auditing standards in India? SEBI ICAI ICSI RBI None 8. A code of ethics for auditors ensures: Increased company profits Proper maintenance of accounts Avoidance of tax audits Professional behavior and integrity None 9. Which document is verified when vouching purchases? Sales Invoice Purchase Invoice Bank Statement Credit Note None 10. Which of the following is not a type of audit opinion? Unqualified Opinion Qualified Opinion Adverse Opinion Management Opinion None 11. Vouching involves: Checking the accuracy of ledger balances Examining supporting documents for transactions Preparing financial statements Auditing financial reports None 12. Which type of account follows the "Debit the receiver, Credit the giver" rule? Personal Account Real Account Nominal Account Contra Account None 13. The process of recording financial transactions in books is called: Accounting Bookkeeping Auditing Financial Management None 14. Which of the following is an intangible asset? Goodwill Land Machinery Inventory None 15. Which book is used for recording daily financial transactions? Ledger Cash Book Trial Balance Balance Sheet None 16. What does a "suspense account" do? Records cash transactions Temporarily holds unclassified transactions Maintains petty cash expenses Records bad debts None 17. Capital expenditure is incurred for: Day-to-day expenses Short-term benefits Acquiring fixed assets Office supplies None 18. Which of the following is an example of a liability? Cash in Hand Debtors Creditors Prepaid Rent None 19. The balance of which account is carried forward to the next accounting period? Nominal Account Real Account Personal Account Capital Account None 20. Which of the following is not a method of inventory valuation? FIFO LIFO HIFO Weighted Average None 21. Who is responsible for the preparation of financial statements? Auditor Management Shareholders Government None 22. The scope of audit includes: Verification of assets and liabilities Examination of accounting records Expressing an opinion on financial statements All of the above None 23. Which type of audit is conducted by an external auditor? Internal Audit Statutory Audit Cost Audit Tax Audit None 24. What does "Vouching" mean in auditing? Preparing financial statements Verifying transactions with supporting documents Checking internal controls Calculating profits None 25. Which of the following is not a type of audit? Cost Audit Secret Audit Performance Audit Secret Audit Tax Audit None 26. The main objective of an audit is to: Detect fraud Ensure compliance with tax laws Express an opinion on financial statements Calculate profits None 27. Which of the following is a type of audit opinion? Qualified Unqualified Adverse All of the above None 28. What is internal control in auditing? Examining financial statements System of policies to ensure efficiency Preparation of balance sheet None of the above None 29. Audit working papers should be retained for: One year Three years Five years As per regulatory requirement None 30. The term "Materiality" in auditing means: Cost of an asset Importance of an item in financial statements Quality of audit evidence None of the above None 31. Which financial statement shows a company’s financial position at a specific date? Profit and Loss Account Balance Sheet Trial Balance Cash Flow Statement None 32. Which type of account follows the rule "Debit all expenses and losses, Credit all incomes and gains"? Personal Account Real Account Nominal Account Contra Account None 33. Which of the following is a non-current asset? Cash in Hand Inventory Accounts Receivable Land and Building None 34. Discount allowed to customers is recorded in which account? Income Account Expense Account Liability Account Asset Account None 35. Which accounting principle ensures that financial statements are prepared assuming the business will continue operating indefinitely? Accrual Concept Going Concern Concept Prudence Concept Consistency Concept None 36. Which of the following is an objective of auditing? Preparation of financial statements Fraud detection and prevention Expressing an opinion on financial statements Preparing tax returns None 37. Which type of audit is conducted at irregular intervals without prior notice? Internal Audit Statutory Audit Management Audit Surprise Audit None 38. Who appoints the statutory auditor of a company? Board of Directors Shareholders Government Company Secretary None 39. Which of the following is not an essential characteristic of good audit evidence? Reliability Relevance Subjectivity Sufficiency None 40. Which type of audit checks whether an entity is complying with laws and regulations? Internal Audit Compliance Audit Financial Audit Operational Audit None 1 out of 4 Great job on taking the INCOC Test! We appreciate your interest in test. Look out for results and future opportunities. Stay Connected !! Your quiz time is about to finish. Few seconds left. Time's upYou cannot switch tabs while taking this quiz!You are not allowed to switch tabs violation has been recorded.you cannot minimize full screen mode!You are not allowed to minimize full screen while taking this quiz, violation has been recorded.Access denied! To begin the quiz, please grant this quiz access to your camera.Time is Up!Time is Up!
