auditing mcqs

Vouching

Testing

Auditing

Verification

the timing of the audit

whether corrections from the inventory count have been implemented

last year’s audit

the potential use of internal audit

Duty to sign the audit report

Duty to report to the members

Duty to report on any violation of law

Duty to report to the company’s bankers

Considering whether the financial statements show a true and fair view

Considering the work to be done by the client staff e.g. internal audit

Background i.e. industry

Previous year’s audit i.e. any qualifications in the report

Disproportionately

Inversely

Directly

Randomly

For the period the audit firm is in existence.

For the time period the entity remains a client of the audit firm.

For a period auditor opines them to be useful in servicing the client

For a period of ten years

Both (A) and (B)

Detection and Prevention of fraud and error

Expression of opinion

Depends on the type of audit.

Until the directors remove them

Until the audit is complete

Until the next AGM (Annual General Meeting)

Until the financial statements are complete

Teeming and lading

Embezzlement

Hacking

Looping

Estimates of the total likely misstatement is less than materiality level

Estimate of the total likely misstatement is more than materially level

Amount of known misstatement is documented in working papers

Estimates of the total likely misstatement cannot be made

International Accounting Standards Board

International Federation of Accountants

International Standards Board

Auditing Practices Board

Internal auditor

Staff specially appointed for the purpose

Supervisor of the staff

Members of the staff

By a government auditor

By a person appointed by the management

By independent auditor

Statutorily appointed auditor

1961

1972

1956

1949

the company’s bank

the directors

the shareholders

the company’s creditors (payables)

Annual audit

Detailed audit

Statutory audit

Continuous audit

annual general meeting

General meeting

extraordinary general meeting

Board meeting

34

38

36

32

Be included in the stock

None of the above

Not be checked by auditor

Not be included in the stock

Error of duplication

Error of principle

Error of omission

Error of commission

Protect the interests of the minority shareholders

Attest to the credibility of the company’s accounts

Detect and prevent errors and fraud

Assess the effectiveness of the company’s performance

one audit firm should audit the IFI and a different firm should audit the financial statements for the year as a whole.

the same firm should review the IFI and the financial statements for the year as a whole.

one accountancy firm should review the IFI and a different firm should audit the financial statements for the year as a whole.

the same firm should audit the IFI and the financial statements for the year as a whole.

Memorandum & articles of association

Audit planning memorandum

Details of the work done on the inventory count

Summary of unadjusted errors

Effective internal control system provides reliable audit evidence

All are correct.

Evidence obtained from outside sources routed through the client

To be reliable, evidence should conclusive rather than persuasive

They should not contain details regarding weaknesses in the internal control system

They help the auditor to monitor the effectiveness of the audit firm’s quality control

They document the level of independence maintained by the auditor

They should be considered as the principle support for the auditor’s report