1. Surprise check may be with respect to â??â??â??

A) Verification of cash
B) Verification of investment
C) Verification of inventory
D) All of above



2. â??â??â??â??â??is a complete and exhausted description of the system as found in operation by the auditors.

A) Check List
B) Flow Chart
C) Narrative Records
D) Internal Control Questionnaire



3. Objectives of internal controls can only be reasonably achieved but not absolutely due to â??â??â??â??â??

A) Inherent limitation of audit
B) Inherent limitation of internal controls
C) Inherent risk
D) Detection risk



4. Which of the following is not fall under general considerations in framing a system of internal check?

A) During the year end stock taking, trading activities should be suspended
B) Check on day to day transactions which operate continuously as a part of routine system
C) Persons having physical custody of assets must not be permitted to have access to the books of accounts
D) Both (a) and (c)



5. Which of the following in inherent limitation of internal controls

A) Role of human judgment
B) Ineffective operation of control
C) Collusion among employees
D) All of the above