Correct Answer:
B. Compliance audit
A compliance audit tests adherence to specified laws, regulations and policies.
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
An audit to determine whether an entity has followed applicable laws, rules and regulations is called a:
Related MCQs
Under IFRS 15, revenue is recognized when:
A.
A performance obligation is satisfied by transferring control of goods or services to the customer
B.
A contract is signed
C.
Cash is received in all cases
D.
The invoice is printed
Correct answer is:
A. A performance obligation is satisfied by transferring control of goods or services to the customer
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Stock audit in a government department is intended to:
A.
Verify the physical existence and proper record of stores and stock
B.
Count cash in the treasury
C.
Check payroll only
D.
Verify tax assessments
Correct answer is:
A. Verify the physical existence and proper record of stores and stock
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Under variable (direct) costing, fixed manufacturing overhead is treated as:
A.
A product cost
B.
A period cost
C.
A direct material cost
D.
An asset
Correct answer is:
B. A period cost
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In double-entry bookkeeping, every transaction:
A.
Affects only one account
B.
Is recorded only as a debit
C.
Is recorded only in the cash book
D.
Affects at least two accounts with total debits equal to total credits
Correct answer is:
D. Affects at least two accounts with total debits equal to total credits
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Fixed costs are Rs. 90,000 and the contribution margin ratio is 30%. The break-even sales value is:
A.
Rs. 270,000
B.
Rs. 300,000
C.
Rs. 120,000
D.
Rs. 900,000
Correct answer is:
B. Rs. 300,000
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The main purpose of depreciation is to:
A.
Show the market value of the asset
B.
Allocate the cost of a non-current asset over its useful life
C.
Set aside cash to replace the asset
D.
Increase profit
Correct answer is:
B. Allocate the cost of a non-current asset over its useful life
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