Process of verifying the documentary evidences of transactions are known as___________?
Process of verifying the documentary evidences of transactions are known as___________?
Auditing | |
Vouching | |
Verification | |
Testing |
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۔
Pak Study Library is installing new software to improve its services. herefore, in the next few days, you may face difficulties in accessing some pages. sorry for the inconvenience.
Process of verifying the documentary evidences of transactions are known as___________?
Auditing | |
Vouching | |
Verification | |
Testing |
At the planning stage you would NOT consider____________?
last year’s audit | |
the potential use of internal audit | |
whether corrections from the inventory count have been implemented | |
the timing of the audit |
Which one of the following is NOT a duty of the auditor?
Duty to sign the audit report | |
Duty to report to the members | |
Duty to report to the company’s bankers | |
Duty to report on any violation of law |
Which one of the following is NOT considered to be part of planning?
Considering the work to be done by the client staff e.g. internal audit | |
Background i.e. industry | |
Previous year’s audit i.e. any qualifications in the report | |
Considering whether the financial statements show a true and fair view |
The nature, timing and extent of substantive procedures is related to assessed level of control risk
Directly | |
Randomly | |
Disproportionately | |
Inversely |
For what minimum period should audit working papers be retained by audit firm?
For a period of ten years | |
For the time period the entity remains a client of the audit firm. | |
For a period auditor opines them to be useful in servicing the client | |
For the period the audit firm is in existence. |
The main object of an audit is _____________?
Both (A) and (B) | |
Detection and Prevention of fraud and error | |
Expression of opinion | |
Depends on the type of audit. |
How long is the auditor’s term of office?
Until the directors remove them | |
Until the audit is complete | |
Until the next AGM (Annual General Meeting) | |
Until the financial statements are complete |
Lapping is also known as___________?
Looping | |
Hacking | |
Teeming and lading | |
Embezzlement |
When issuing unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the___________?
Estimates of the total likely misstatement cannot be made | |
Estimates of the total likely misstatement is less than materiality level | |
Estimate of the total likely misstatement is more than materially level | |
Amount of known misstatement is documented in working papers |
International auditing standards are issued by the______________?
International Accounting Standards Board | |
International Federation of Accountants | |
International Standards Board | |
Auditing Practices Board |
Internal check is carried on by___________?
Internal auditor | |
Members of the staff | |
Staff specially appointed for the purpose | |
Supervisor of the staff |
Internal audit is undertaken:
By a government auditor | |
By independent auditor | |
By a person appointed by the management | |
Statutorily appointed auditor |
Institute of Chartered Accountants of Pakistan was established in____________?
1961 | |
1956 | |
1972 | |
1949 |
The independent auditor’s primary responsibility is to______________?
the company’s bank | |
the directors | |
the company’s creditors (payables) | |
the shareholders |
In Pakistan, balance sheet audit is synonymous to___________?
Statutory audit | |
Detailed audit | |
Continuous audit | |
Annual audit |
If a casual vacancy in the office of auditor arises by his resignation it should only be filled by the company in a_________?
Board meeting | |
extraordinary general meeting | |
annual general meeting | |
General meeting |
How many Standards on Auditing have been issued?
36 | |
32 | |
38 | |
34 |
Goods sold on the basis of ‘sales or return ‘ should:
Be included in the stock | |
None of the above | |
Not be included in the stock | |
Not be checked by auditor |
Goods sent on approval basis’ have been recorded as ‘Credit sales’. This is an example of____________?
Error of commission | |
Error of duplication | |
Error of omission | |
Error of principle |
The fundamental objective of the audit of a company is to_____________?
Protect the interests of the minority shareholders | |
Attest to the credibility of the company’s accounts | |
Assess the effectiveness of the company’s performance | |
Detect and prevent errors and fraud |
For companies required to produce interim financial statements (IFI):
the same firm should review the IFI and the financial statements for the year as a whole. | |
one accountancy firm should review the IFI and a different firm should audit the financial statements for the year as a whole. | |
one audit firm should audit the IFI and a different firm should audit the financial statements for the year as a whole. | |
the same firm should audit the IFI and the financial statements for the year as a whole. |
Which of the following are you unlikely to see in the current file of auditors’ working papers?
Summary of unadjusted errors | |
Memorandum & articles of association | |
Audit planning memorandum | |
Details of the work done on the inventory count |
Which of the following statements is, generally, correct about the reliability of audit evidence?
Effective internal control system provides reliable audit evidence | |
To be reliable, evidence should conclusive rather than persuasive | |
Evidence obtained from outside sources routed through the client | |
All are correct. |
Which of the following statement is true regarding an auditor’s working papers?
They should be considered as the principle support for the auditor’s report | |
They document the level of independence maintained by the auditor | |
They help the auditor to monitor the effectiveness of the audit firm’s quality control | |
They should not contain details regarding weaknesses in the internal control system |