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B Com Exam  >  B Com Test  >  Auditing and Secretarial Practice  >  Test: Internal Control - B Com MCQ

Internal Control - Free MCQ Practice Test with solutions, B Com


MCQ Practice Test & Solutions: Test: Internal Control (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: Internal Control". 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: Internal Control - Question 1
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What is the main purpose of internal control in an organization?

Detailed Solution: Question 1

Internal control in an organization is established to ensure efficient and orderly conduct of business operations. It helps safeguard assets, maintain reliable accounting records, and ensure that management policies and decisions are properly implemented.

Test: Internal Control - Question 2
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Which of the following is NOT an objective of internal control?

Detailed Solution: Question 2

While internal control aims to prevent fraud, it cannot guarantee the prevention of all types of fraud. It focuses on minimizing the risk of fraud through control measures.

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Test: Internal Control - Question 3
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Which area of internal control is concerned with the distribution of authority and decision-making within management?

Detailed Solution: Question 3

Administrative Control is concerned with the distribution of authority and decision-making process within management. It focuses on ensuring the overall operational efficiency of the organization.

Test: Internal Control - Question 4
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What is the purpose of internal check?

Detailed Solution: Question 4

The purpose of internal check is to locate errors and frauds by involving multiple individuals in the process. It ensures that the work of one person is automatically checked by another, reducing the risk of errors and fraudulent activities.

Test: Internal Control - Question 5
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What is the main purpose of ratio analysis in an organization?

Detailed Solution: Question 5

The main purpose of ratio analysis is to provide a simple and meaningful understanding of the performance and financial position of an organization. It helps stakeholders evaluate the financial health of the company using easily interpretable ratios.

Test: Internal Control - Question 6
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What is the primary advantage of inter-firm comparison?

Detailed Solution: Question 6

The primary advantage of inter-firm comparison is that it facilitates quality improvement and cost reduction. By comparing with other firms, a company can identify its strengths, weaknesses, and areas for improvement, leading to increased efficiency and cost savings.

Test: Internal Control - Question 7
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In audit sampling, which method involves selecting sample items with a uniform interval between each sample item?

Detailed Solution: Question 7

Systematic Sampling involves selecting sample items with a uniform interval between each sample item. This method simplifies the selection process and ensures that the sample is representative of the population.

Test: Internal Control - Question 8
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What is the objective of "audit in depth"?

Detailed Solution: Question 8

The objective of "audit in depth" is to extensively examine a transaction from origin to end, covering all aspects of the transaction including validity, adherence to procedures, accuracy, and accounting treatment.

Test: Internal Control - Question 9
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What is the main advantage of intra-firm comparison?

Detailed Solution: Question 9

The main advantage of intra-firm comparison is that it helps identify strengths and weaknesses among different units or strategic business units (SBUs) within the same organization. This enables the organization to take corrective actions and improve efficiency.

Test: Internal Control - Question 10
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What is the primary objective of internal audit?

Detailed Solution: Question 10

The primary objective of internal audit is to ensure that the internal control system is effective in design and operation. Internal auditors review the control measures in place and evaluate their efficiency in preventing errors and frauds.

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About this B Com Practice Test

This test contains 10 MCQs on Internal Control 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.

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