Basic Auditing MCQs Quiz 3

Receive notification of the AGM/EGM where the removal is proposed

Circulate representations to members

Apply to the court to have the proposal removed

Speak at the AGM/EGM where the removal is proposed

Because the directors have asked for it

Because it reduces the audit time

Because the risk to the accounts of their being incorrectly stated is greater

Because they are easier to audit

Attorney’s letters

Debt agreements

Past year’s financial statements

Extracts from client’s bank statements

Income and expense accounts where appropriate

Liabilities

All of the above

Assets

Routine checks

Verification of assets and liabilities

Examination of adjusting and closing entries

Vouching of income and expense accounts related to assets and liabilities

Embezzlement

Misappropriation

None of these

Lapping

Are responsible for ensuring that the company complies with the law

Safeguard the company’s assets and manage them on behalf of the shareholders

Are responsible for ensuring that the company pays its tax by the due date

Report suspected fraud and money laundering to the authorities

Internal check system

Continuous audit

None of these

Internal audit system

Copies of bond and debentures

Organisation charts

A copy of financial statements

A flowchart of the internal controls

The implementation of the controls and the correctness of the accounting records

The design of the internal control system and the correctness of the accounting records

The design of the internal controls and the implementation of the control system

The design of the internal control system and the implementation of the controls