FREE CGAP MCQ Questions and Answers

Question 1

Vouching of _____ refers to the process of verifying the balances of all revenue and expense accounts.

Accepted Answer

Impersonal ledger.

Answer

Cash

Answer

Sales

Answer

Personal ledger.

Question 2

The best illustration of ________ is preliminary costs.

Accepted Answer

fictitious asset.

Answer

floating asset.

Answer

wasting asset.

Answer

intangible asset.

Question 3

Regular auditing is also known as .

Accepted Answer

Balance sheet audit.

Answer

Interim audit.

Answer

Final audit.

Answer

Income statement audit.

Question 4

A government company's auditor must be chosen by .

Accepted Answer

the central government.

Answer

the debenture holders.

Answer

the share holders.

Answer

the government company itself.

Question 5

The cash book audit's primary goal could be .

Accepted Answer

to know that all receipts and payments have been properly recorded.

Answer

to check the bank balance.

Answer

to check the internal control system in business.

Answer

to verify the assets and liabilities.

Question 6

One of the audit methods used to verify the newly established company's share capital issue is .

Accepted Answer

the memorandum of association and articles of association.

Answer

the issue of debenture.

Answer

the share transfer register.

Answer

none of the above.

Question 7

The practice of having one clerk's work automatically checked by another is known as _____________ .

Accepted Answer

Internal check.

Answer

Internal audit.

Answer

Internal control.

Answer

None of the above.

Question 8

The company's owners go by the name of _______ .

Accepted Answer

Shareholders

Answer

Debtors

Answer

Debenture holders.

Answer

None of the above.

Question 9

The auditor must operate under the professional skepticism that management is .

Accepted Answer

neither honest nor dishonest.

Answer

reasonably honest.

Answer

dishonest unless proved otherwise.

Answer

not necessarily honest.

Question 10

The easiest way to guarantee the auditor will have which of the following is to utilize an audit engagement letter?

Accepted Answer

Access to all books, accounts and vouchers required for audit purpose.

Answer

Management representation letter.

Answer

Auditor will obtain sufficient appropriate audit evidence.

Answer

Co-operation from other auditors