Balance sheet audit includes verification of____________?
Balance sheet audit includes verification of____________?
Assets | |
All of the above | |
Income and expense accounts where appropriate | |
Liabilities |
پاک اسٹڈی لائبریری اپنی خدمات کو بہتر کرنے کے لئے نئے سوفٹ وئیر انسٹال کررہی ہے ۔ اس لئے آئندہ کچھ دن آپ کو کچھ صفحات تک رسائی میں مشکلات کا سامنا ہوسکتا ہے ۔ جس کے لئے ہم معذرت خواہ ہیں۔
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Accounting mcqs
The auditor’s permanent working paper file should not normally, include__________?
The auditor’s permanent working paper file should not normally, include__________?
Past year’s financial statements | |
Debt agreements | |
Attorney’s letters | |
Extracts from client’s bank statements |
Why do auditors concentrate their efforts on material items in accounts?
Why do auditors concentrate their efforts on material items in accounts?
Because the directors have asked for it | |
Because they are easier to audit | |
Because it reduces the audit time | |
Because the risk to the accounts of their being incorrectly stated is greater |
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?
Apply to the court to have the proposal removed | |
Circulate representations to members | |
Receive notification of the AGM/EGM where the removal is proposed | |
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_______________?
None of these | |
Watch dog | |
May both according to situation | |
Blood haunt |
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____________?
Joint stock Companies | |
Small scale business | |
Proprietary Concerns | |
Partnership firms |
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?
Detection risk | |
Compliance risk | |
Inherent 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__________?
All of the above | |
Concurrent audit | |
Balance sheet audit | |
Statutory audit |
Audit in depth is synonymous for_____________?
Audit in depth is synonymous for_____________?
Completed audit | |
Detailed audit | |
Complete audit | |
Final 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 __________?
May be eliminated for an account balance under certain conditions | |
Will increase proportionately when the auditor decreases the assessed level of control risk | |
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____________?
Final audit | |
Complete audit | |
Detailed audit | |
Completed audit |
Audit of banks is an example of_____________?
Audit of banks is an example of_____________?
All of the above | |
Concurrent audit | |
Balance sheet audit | |
Statutory 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 shareholders in a general meeting | |
The managing director | |
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?
None of the above | |
The auditor concludes that the balance is materially misstated when in actual fact it not | |
The auditor has rejected an item for sample which was material | |
The auditor concludes balance is materially correct when in actual fact it is not |
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 | |
Indicates important aspects of business | |
All of the above | |
Directs attention to potential risk areas |
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 | |
All of the above | |
indicates important aspects of business | |
directs attention to potential risk areas |
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.
Advocacy threat | |
Self-interest threat | |
Familiarity threat | |
Self-review 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 | |
Objectivity & independence | |
Appropriateness & competence | |
Sufficiency & appropriateness |
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 | |
Information processing | |
Participation of management |
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 | |
Physical controls | |
Organizational structure |
A statutory auditor has a right of access at all times to___________?
A statutory auditor has a right of access at all times to___________?
Books and accounts of a company | |
Books, accounts and vouchers of the company | |
Notices and documents of the company | |
Books, accounts and documents of the company |
Favorable balance of bank statement implies that
Favorable balance of bank statement implies that
Credit balance | |
Debit balance | |
Adjusted balance | |
Bank overdraft |