1) Management auditor should have a thorough knowledge of
a. Financial Accounting
b. Production techniques
c. Costing systems
d. All of the above
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Answer
Explanation
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ANSWER: All of the above
Explanation:
No explanation is available for this question!
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2) A management auditor can recommend the most suitable system of flow of information _______.
a. Internally
b. Externally
c. Internally and externally
d. None of the above
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Answer
Explanation
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ANSWER: Internally and externally
Explanation:
No explanation is available for this question!
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3) Management auditor should be conversant with the nature of production activities in organization.
a. True
b. False
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Answer
Explanation
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ANSWER: True
Explanation:
No explanation is available for this question!
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4) Management auditor should be well versed with
a. Management by exception
b. Management by objectives
c. Principles of delegation of authority
d. All of the above
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Answer
Explanation
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ANSWER: All of the above
Explanation:
No explanation is available for this question!
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5) Which of the following statements are true about management audit?
a. The management audit is made compulsory and statutory
b. Management audit is a programme of one year
c. Management audit cannot be conducted by an independent person
d. No time limit can be fixed for submission of the report under management audit
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Answer
Explanation
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ANSWER: No time limit can be fixed for submission of the report under management audit
Explanation:
No explanation is available for this question!
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6) Cost audit is a verification of cost records to estimate the ________ efficiency of a business.
a. External
b. Internal
c. Both internal and external
d. None of the above
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Answer
Explanation
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ANSWER: Internal
Explanation:
No explanation is available for this question!
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7) The management auditor’s work begins
a. After the work of a statutory auditor ends
b. Before the work of a statutory auditor begins
c. Varies from firm to firm
d. None of the above
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Answer
Explanation
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ANSWER: After the work of a statutory auditor ends
Explanation:
No explanation is available for this question!
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8) Management auditing is a part of statutory auditing.
a. True
b. False
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Answer
Explanation
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ANSWER: False
Explanation:
No explanation is available for this question!
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9) Management audit is useful for
a. Suggestion for targets
b. Assistance to management
c. Good staff relationship
d. All of the above
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Answer
Explanation
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ANSWER: All of the above
Explanation:
No explanation is available for this question!
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10) As per Leslie R. Howard, Management audit is an investigation of a business from the __________ in order to ascertain whether sound management prevails throughout.
a. Highest level downwards
b. Lowest level upwards
c. Either a or b
d. None of the above
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Answer
Explanation
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ANSWER: Highest level downwards
Explanation:
No explanation is available for this question!
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