Basic Auditing MCQs Quiz 3

Speak at the AGM/EGM where the removal is proposed

Apply to the court to have the proposal removed

Circulate representations to members

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

Because they are easier to audit

Because the directors have asked for it

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

Because it reduces the audit time

Debt agreements

Extracts from client’s bank statements

Past year’s financial statements

Attorney’s letters

Liabilities

Assets

All of the above

Income and expense accounts where appropriate

Vouching of income and expense accounts related to assets and liabilities

Examination of adjusting and closing entries

Routine checks

Verification of assets and liabilities

Lapping

Embezzlement

Misappropriation

None of these

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

Report suspected fraud and money laundering to the authorities

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

Are responsible for ensuring that the company complies with the law

Continuous audit

None of these

Internal check system

Internal audit system

Organisation charts

A copy of financial statements

Copies of bond and debentures

A flowchart of the internal controls

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

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

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

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