Explore Exams
Login Signup
Sign in Open App
B Com Exam  >  B Com Test  >  Auditing and Secretarial Practice  >  Test: Auditing Concepts- 2 - B Com MCQ

Auditing Concepts- 2 - Free MCQ Practice Test with solutions, B Com


MCQ Practice Test & Solutions: Test: Auditing Concepts- 2 (10 Questions)

You can prepare effectively for B Com Auditing and Secretarial Practice with this dedicated MCQ Practice Test (available with solutions) on the important topic of "Test: Auditing Concepts- 2". These 10 questions have been designed by the experts with the latest curriculum of B Com 2026, to help you master the concept.

Test Highlights:

  • - Format: Multiple Choice Questions (MCQ)
  • - Duration: 10 minutes
  • - Number of Questions: 10

Sign up on EduRev for free to attempt this test and track your preparation progress.

Test: Auditing Concepts- 2 - Question 1
Save

What is the primary objective of an audit?

Detailed Solution: Question 1

The primary objective of an audit is to determine the true and fair view of the financial statements of a business. It aims to ascertain the accuracy, authenticity, and reliability of the financial information presented in the balance sheet and profit and loss account.

Test: Auditing Concepts- 2 - Question 2
Save

In auditing, what is the role of an auditor with regards to errors and frauds?

Detailed Solution: Question 2

Auditors are not expected to guarantee that financial statements are entirely free from errors and frauds. However, they must exercise reasonable care and skill in detecting errors and frauds during their audit process.

Clear all your doubts with EduRev
Test: Auditing Concepts- 2 - Question 3
Save

What does the term "integrity" mean in the context of auditing principles?

Detailed Solution: Question 3

"Integrity" in auditing refers to the auditor's quality of being honest, unbiased, and impartial in their judgments and assessments of financial information.

Test: Auditing Concepts- 2 - Question 4
Save

Which of the following is not a limitation of auditing?

Detailed Solution: Question 4

Detailed checking of every transaction is not a limitation of auditing. Auditors may use test checking to examine a representative sample of transactions rather than checking each and every transaction.

Test: Auditing Concepts- 2 - Question 5
Save

Which principle emphasizes the auditor's responsibility to plan their work effectively and coordinate the tasks to be performed?

Detailed Solution: Question 5

The principle of "Planning" emphasizes that auditors should plan their work to conduct the audit effectively, efficiently, and in a timely manner. They need to acquire knowledge of the client's accounting system and internal control, and coordinate the tasks to be performed.

Test: Auditing Concepts- 2 - Question 6
Save

In the case of a joint-stock company, what assurance does an audit provide to shareholders?

Detailed Solution: Question 6

For shareholders of a joint-stock company, an audit assures them that the company's affairs are being conducted smoothly, and their investment in the company is safe.

Test: Auditing Concepts- 2 - Question 7
Save

What is the significance of an audit for lenders and creditors?

Detailed Solution: Question 7

Lenders and creditors can rely on audited financial statements while making credit decisions for a business. Audited accounts provide a level of assurance about the financial health and reliability of the business.

Test: Auditing Concepts- 2 - Question 8
Save

Which principle stresses the importance of obtaining sufficient appropriate evidence to form an opinion on the financial information?

Detailed Solution: Question 8

The principle of "Audit evidence" emphasizes that auditors should obtain sufficient appropriate evidence through compliance and substantive procedures to draw reasonable conclusions and form an opinion on the financial information.

Test: Auditing Concepts- 2 - Question 9
Save

What is the main purpose of investigation in the context of auditing?

Detailed Solution: Question 9

The main purpose of investigation in auditing is to ascertain essential facts about a specific matter. It involves a detailed inquiry into a specific area of concern, such as the financial position of a business or the extent of fraud.

Test: Auditing Concepts- 2 - Question 10
Save

Which advantage of auditing is related to the valuation of goodwill and the settlement of accounts in a partnership firm?

Detailed Solution: Question 10

In the case of a partnership firm, audited accounts serve as evidence of proper management of the business. They are also helpful in the valuation of goodwill and the settlement of accounts when a partner joins, retires, or passes away.

54 videos|65 docs|22 tests
Join Course
Information about Test: Auditing Concepts- 2 Page
In this test you can find the Exam questions for Test: Auditing Concepts- 2 solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Auditing Concepts- 2, EduRev gives you an ample number of Online tests for practice
Download as PDF
;

About this B Com Practice Test

This test contains 10 MCQs on Auditing Concepts- 2 with detailed solutions for each question. It is part of the Auditing and Secretarial Practice course on EduRev, designed to align with the current B Com syllabus. Each solution explains not just the correct answer but also gives you an understanding of the topic — not just to attempt the question but also help you prepare for the exam with practice.

Explore more B Com Study Resources

If you found this Auditing Concepts- 2 MCQ Test helpful, you can further enhance your B Com preparation with in-depth courses on EduRev, for all the subjects and topics available in Auditing and Secretarial Practice course. The course offers:
  • Video Lectures: covering all the topics of Auditing and Secretarial Practice
  • Notes for Revision: offering revision notes, important questions, summaries, flashcards, cheatsheets & more for B Com preparation
  • MCQ Test: variety of questions as per the pattern of B Com exam
Signup to see your scores go up
within 7 days!
Takes less than 10 seconds to signup