Balance sheet audit includes verification of____________?
Balance sheet audit includes verification of____________?
Liabilities | |
All of the above | |
Income and expense accounts where appropriate | |
Assets |
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 | |
Past year’s financial statements | |
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 risk to the accounts of their being incorrectly stated is greater | |
Because it reduces the audit time | |
Because they are easier to audit | |
Because the directors have asked for it |
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 | |
Speak at the AGM/EGM where the removal is proposed | |
Circulate representations to members | |
Receive notification of 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?
Nonprofit making | |
Manufacturing | |
Unlimited liability | |
Banking |
An auditor is like a_______________?
An auditor is like a_______________?
None of these | |
May both according to situation | |
Blood haunt | |
Watch dog |
Auditing engagement can be performed w.r.t.
Auditing engagement can be performed w.r.t.
Any entity | |
Profit making entity | |
Corporate entity only | |
Non-profit making entity |
Auditing is compulsory for____________?
Auditing is compulsory for____________?
Joint stock Companies | |
Proprietary Concerns | |
Small scale business | |
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?
Control risk | |
Inherent risk | |
Detection risk | |
Compliance risk |
Audit programme is prepared by____________?
Audit programme is prepared by____________?
The audit assistants | |
The client | |
The auditor and his audit assistants | |
The auditor |
Audit of banks is an example of__________?
Audit of banks is an example of__________?
All of the above | |
Balance sheet audit | |
Concurrent audit | |
Statutory audit |
Audit in depth is synonymous for_____________?
Audit in depth is synonymous for_____________?
Detailed audit | |
Complete audit | |
Final 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 __________?
Are designed to discover significant subsequent events | |
May be test of transactions, test of balance and analytical procedures | |
May be eliminated for an account balance under certain conditions | |
Will increase proportionately when the auditor decreases the assessed level of control risk |
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_____________?
Balance sheet audit | |
All of the above | |
Statutory audit | |
Concurrent 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 board of directors in a board meeting | |
The audit committee | |
The shareholders in a general meeting | |
The managing director |
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 | |
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 | |
None of the above |
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 | |
Directs attention to potential risk areas | |
Helps to determine the nature, timing and extent of other audit procedures |
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 | |
directs attention to potential risk areas | |
All of the above |
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-interest threat | |
Familiarity threat | |
Self-review 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 | |
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?
Participation of management | |
Commitment to competence | |
Human resource policies and practices | |
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?
Organizational structure | |
Physical controls | |
Performance reviews | |
Segregation of duties |
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 |