(A) Internal check system

(B) Continuous audit

(C) Internal audit system

(D) None

(A) Statutory audit

(B) Balance sheet audit

(C) Concurrent audit

(D) All of the above

(A) Shareholders

(B) Management

(C) Government

(D) Law

(A) By independent auditor

(B) Statutorily appointed auditor

(C) By a person appointed by the management

(D) By a government auditor

(A) Objectivity of auditor’s judgment

(B) Selective testing

(C) Persuasiveness of evidence

(D) Limitations of internal control system.

(A) He should inform the management.

(B) He should communicate it to the management if it is material

(C) The auditor should ensure financial statements are adjusted for detected errors.

(D) Both (b) and (c)

(A) Management fraud is more difficult to detect than employee fraud

(B.) Internal control system reduces the possibility of occurrence of employee fraud and management fraud

(C) The auditor’s responsibility for detection and prevention of errors and frauds is similar.

(D) All statements are correct.

(A) Error of principle

(B) Error of commission

(C) Error of omission

(D) Error of duplication

(A) Error of omission

(B) Error of commission

(C) Compensating error

(D) Error of principle

(A) The auditor should express an opinion on financial statements.

(B) His opinion is no guarantee to future viability of business

(C) He is responsible for detection and prevention of frauds and errors in financial statements

(D) He should examine whether recognised accounting principle have been consistently