Balance sheet audit includes verification of____________?
Balance sheet audit includes verification of____________?
Income and expense accounts where appropriate | |
Liabilities | |
All of the above | |
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__________?
Past year’s financial statements | |
Attorney’s letters | |
Debt agreements | |
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 they are easier to audit | |
Because the risk to the accounts of their being incorrectly stated is greater | |
Because it reduces the audit time | |
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?
Speak at the AGM/EGM where the removal is proposed | |
Apply to the court to have the proposal removed | |
Receive notification of the AGM/EGM where the removal is proposed | |
Circulate representations to members |
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 | |
Banking | |
Unlimited liability | |
Manufacturing |
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.
Any entity | |
Profit making entity | |
Corporate entity only | |
Non-profit making entity |
Auditing is compulsory for____________?
Auditing is compulsory for____________?
Proprietary Concerns | |
Joint stock Companies | |
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?
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 and his audit assistants | |
The auditor |
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_____________?
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 __________?
Are designed to discover significant subsequent events | |
Will increase proportionately when the auditor decreases the assessed level of control risk | |
May be eliminated for an account balance under certain conditions | |
May be test of transactions, test of balance and analytical procedures |
Audit in depth is synonymous for____________?
Audit in depth is synonymous for____________?
Complete audit | |
Completed audit | |
Final audit | |
Detailed audit |
Audit of banks is an example of_____________?
Audit of banks is an example of_____________?
Statutory audit | |
Balance sheet audit | |
Concurrent audit | |
All of the above |
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 audit committee | |
The managing director | |
The board of directors in a board 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 that the balance is materially misstated when in actual fact it not | |
The auditor concludes balance is materially correct when in actual fact it is 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
Directs attention to potential risk areas | |
Helps to determine the nature, timing and extent of other audit procedures | |
All of the above | |
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?
All of the above | |
helps to determine the nature, timing and extent of other audit procedures | |
directs attention to potential risk areas | |
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.
Familiarity threat | |
Advocacy threat | |
Self-interest 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?
Appropriateness & competence | |
Sufficiency & appropriateness | |
Objectivity & independence | |
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?
Commitment to competence | |
Human resource policies and practices | |
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 | |
Organizational structure | |
Segregation of duties | |
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 and accounts of a company | |
Books, accounts and vouchers of the company |