Balance sheet audit includes verification of____________?
Balance sheet audit includes verification of____________?
Assets | |
Liabilities | |
All of the above | |
Income and expense accounts where appropriate |
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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auditing mcqs
The auditor’s permanent working paper file should not normally, include__________?
The auditor’s permanent working paper file should not normally, include__________?
Debt agreements | |
Attorney’s letters | |
Past year’s financial statements | |
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 it reduces the audit time | |
Because the risk to the accounts of their being incorrectly stated is greater | |
Because the directors have asked for it | |
Because they are easier to audit |
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?
Circulate representations to members | |
Receive notification of the AGM/EGM where the removal is proposed | |
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?
Unlimited liability | |
Nonprofit making | |
Banking | |
Manufacturing |
An auditor is like a_______________?
An auditor is like a_______________?
May both according to situation | |
None of these | |
Blood haunt | |
Watch dog |
Auditing engagement can be performed w.r.t.
Auditing engagement can be performed w.r.t.
Any entity | |
Non-profit making entity | |
Corporate entity only | |
Profit making entity |
Auditing is compulsory for____________?
Auditing is compulsory for____________?
Proprietary Concerns | |
Partnership firms | |
Small scale business | |
Joint stock Companies |
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 | |
Control risk | |
Compliance risk | |
Detection risk |
Audit programme is prepared by____________?
Audit programme is prepared by____________?
The auditor | |
The auditor and his audit assistants | |
The audit assistants | |
The client |
Audit of banks is an example of__________?
Audit of banks is an example of__________?
Statutory audit | |
All of the above | |
Concurrent audit | |
Balance sheet audit |
Audit in depth is synonymous for_____________?
Audit in depth is synonymous for_____________?
Detailed audit | |
Final audit | |
Complete 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 | |
Final audit | |
Detailed audit | |
Complete audit |
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 |
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 audit committee | |
The board of directors in a board meeting | |
The managing director | |
The shareholders in a general meeting |
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
All of the above | |
Indicates important aspects of business | |
Helps to determine the nature, timing and extent of other audit procedures | |
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?
indicates important aspects of business | |
All of the above | |
directs attention to potential risk areas | |
helps to determine the nature, timing and extent of other audit procedures |
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 | |
Familiarity threat | |
Self-review threat | |
Self-interest 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?
Appropriateness & competence | |
Objectivity & independence | |
Sufficiency & appropriateness | |
Reliability & extensiveness |
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 | |
Participation of management | |
Information processing | |
Commitment to competence |
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?
Organizational structure | |
Segregation of duties | |
Performance reviews | |
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 vouchers of the company | |
Books and accounts of a company | |
Books, accounts and documents of the company |
