MCQs BSNL Jonior Accounts Officers (JAO)
1. The auditor did not care to check adequacy of ^provision for Bad and Doubtful Debts. Whether he can be held.
(a) Liable for it.
(b) Not liable for it.
(c) Liable criminally for it.
(d) None of these
Ans a
2. The auditor resorted to test checking and, with the result he could not disclose certain frauds whether he can be held
(a) Liable for it
(b) Not liable for it
(c) Liable criminally for it
(d) None of these
Ans a
3. During a company audit, the management argues with the auditor that machinery has been very well maintained and is as good as new Hence there is no need for charging depreciation on it Whether the auditor should
(a) Accept it
(b) ignore it
(c) Reject it
(d) None of these
Ans c
4. Auditor is liable for
(a) Not verifying petty cash
(b) Not determining stock
(c) Not checking accounts property.
(d) All of these.
Ans d
5. An auditor can be held liable under C.A. Act, 1949 for
(a) Negligence.
(b) Criminal offence
(c) Professional misconduct.
(d) Breach of contract.
Ans c
6. If an auditor is found guilty of falsification of company books, he will incur
(a) Criminal liability.
(b) Civil liability
(c) Contractual liability.
(d) None of these.
Ans a
7. A chartered Accountant sent circular letters soliciting work can he be held liable
(a) For misfeasance.
(b) For negligence.
(c) Criminally
(d) For professional misconduct.
Ans d
8. The main object of audit of accounts of a partnership firm is to
(a) Meet the statutory requirements
(b) Increase the profits
(c) Increase the goodwill
(d) Detect errors and frauds.
Ans d
9. Auditing is compulsory in the case of
(a) Sole tradership.
(b) Partnership.
(c) Joint stock companies.
(d) All of these.
Ans b
10. Auditing can be defined as
(a) Preparation of books of accounts.
(b) Examination of books of accounts.
(c) Rendering expert advice to management regarding accounting matters.
(d) Checking that accounts are correct.
Ans c
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