Balance sheet audit includes verification of____________?
Balance sheet audit includes verification of____________?
Assets | |
Income and expense accounts where appropriate | |
Liabilities | |
All of the above |
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auditing mcqs
The auditor’s permanent working paper file should not normally, include__________?
The auditor’s permanent working paper file should not normally, include__________?
Attorney’s letters | |
Extracts from client’s bank statements | |
Past year’s financial statements | |
Debt agreements |
Why do auditors concentrate their efforts on material items in accounts?
Why do auditors concentrate their efforts on material items in accounts?
Because they are easier to audit | |
Because the risk to the accounts of their being incorrectly stated is greater | |
Because the directors have asked for it | |
Because it reduces the audit time |
When an auditor is proposed for removal from office, which one of the following is he NOT permitted to do?
When an auditor is proposed for removal from office, which one of the following is he NOT permitted to do?
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 |
Auditor of a___________company does not have right to visit foreign branches of the company?
Auditor of a___________company does not have right to visit foreign branches of the company?
Manufacturing | |
Unlimited liability | |
Banking | |
Nonprofit making |
An auditor is like a_______________?
An auditor is like a_______________?
Watch dog | |
None of these | |
Blood haunt | |
May both according to situation |
Auditing engagement can be performed w.r.t.
Auditing engagement can be performed w.r.t.
Corporate entity only | |
Non-profit making entity | |
Any entity | |
Profit making entity |
Auditing is compulsory for____________?
Auditing is compulsory for____________?
Partnership firms | |
Joint stock Companies | |
Proprietary Concerns | |
Small scale business |
Audit risk is composed of 3 factors. Which of the following is NOT one of those factors?
Audit risk is composed of 3 factors. Which of the following is NOT one of those factors?
Inherent risk | |
Detection risk | |
Compliance risk | |
Control risk |
Audit programme is prepared by____________?
Audit programme is prepared by____________?
The client | |
The audit assistants | |
The auditor | |
The auditor and his audit assistants |
Audit of banks is an example of__________?
Audit of banks is an example of__________?
Concurrent audit | |
Statutory audit | |
All of the above | |
Balance sheet audit |
Audit in depth is synonymous for_____________?
Audit in depth is synonymous for_____________?
Final audit | |
Complete audit | |
Detailed audit | |
Completed audit |
In an audit of financial statements, substantive tests are audit procedures that __________?
In an audit of financial statements, substantive tests are audit procedures that __________?
Will increase proportionately when the auditor decreases the assessed level of control risk | |
May be eliminated for an account balance under certain conditions | |
Are designed to discover significant subsequent events | |
May be test of transactions, test of balance and analytical procedures |
Audit in depth is synonymous for____________?
Audit in depth is synonymous for____________?
Completed audit | |
Complete audit | |
Detailed audit | |
Final audit |
Audit of banks is an example of_____________?
Audit of banks is an example of_____________?
All of the above | |
Concurrent audit | |
Statutory audit | |
Balance sheet audit |
Assuming that it is not the first appointment of the auditor, who is responsible for the appointment of the auditor?
Assuming that it is not the first appointment of the auditor, who is responsible for the appointment of the auditor?
The managing director | |
The shareholders in a general meeting | |
The board of directors in a board meeting | |
The audit committee |
What would most appropriately describe the risk of incorrect rejection in terms of substantive testing?
What would most appropriately describe the risk of incorrect rejection in terms of substantive testing?
The auditor concludes balance is materially correct when in actual fact it is not | |
None of the above | |
The auditor has rejected an item for sample which was material | |
The auditor concludes that the balance is materially misstated when in actual fact it not |
Analytical procedures issued in the planning stage of an audit, generally
Analytical procedures issued in the planning stage of an audit, generally
Directs attention to potential risk areas | |
All of the above | |
Helps to determine the nature, timing and extent of other audit procedures | |
Indicates important aspects of business |
Analytical procedures issued in the planning stage of an audit, generally?
Analytical procedures issued in the planning stage of an audit, generally?
helps to determine the nature, timing and extent of other audit procedures | |
directs attention to potential risk areas | |
All of the above | |
indicates important aspects of business |
An auditor should not accept a loan on favourable commercial terms from an audit client because of the threat to his or her independence. The threat would be a___________?
An auditor should not accept a loan on favourable commercial terms from an audit client because of the threat to his or her independence.
Self-review threat | |
Familiarity threat | |
Self-interest threat | |
Advocacy threat |
According to ISA 500, the strength of audit evidence is determined by which two qualities?
According to ISA 500, the strength of audit evidence is determined by which two qualities?
Reliability & extensiveness | |
Appropriateness & competence | |
Sufficiency & appropriateness | |
Objectivity & independence |
According to ISA 315, which of the following is NOT an element of the control environment?
According to ISA 315, which of the following is NOT an element of the control environment?
Human resource policies and practices | |
Commitment to competence | |
Participation of management | |
Information processing |
According to ISA 315, which of the following is NOT a control activity?
According to ISA 315, which of the following is NOT a control activity?
Performance reviews | |
Segregation of duties | |
Organizational structure | |
Physical controls |
A statutory auditor has a right of access at all times to___________?
A statutory auditor has a right of access at all times to___________?
Notices and documents of the company | |
Books, accounts and documents of the company | |
Books, accounts and vouchers of the company | |
Books and accounts of a company |