Process of verifying the documentary evidences of transactions are known as___________?
Process of verifying the documentary evidences of transactions are known as___________?
Auditing | |
Testing | |
Verification | |
Vouching |
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 | |
Testing | |
Verification | |
Vouching |
At the planning stage you would NOT consider____________?
last year’s audit | |
whether corrections from the inventory count have been implemented | |
the potential use of internal audit | |
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 company’s bankers | |
Duty to report to the members | |
Duty to report on any violation of law |
Which one of the following is NOT considered to be part of planning?
Considering whether the financial statements show a true and fair view | |
Previous year’s audit i.e. any qualifications in the report | |
Considering the work to be done by the client staff e.g. internal audit | |
Background i.e. industry |
The nature, timing and extent of substantive procedures is related to assessed level of control risk
Disproportionately | |
Directly | |
Inversely | |
Randomly |
For what minimum period should audit working papers be retained by audit firm?
For the time period the entity remains a client of the audit firm. | |
For a period of ten years | |
For the period the audit firm is in existence. | |
For a period auditor opines them to be useful in servicing the client |
The main object of an audit is _____________?
Both (A) and (B) | |
Expression of opinion | |
Detection and Prevention of fraud and error | |
Depends on the type of audit. |
How long is the auditor’s term of office?
Until the audit is complete | |
Until the next AGM (Annual General Meeting) | |
Until the financial statements are complete | |
Until the directors remove them |
Lapping is also known as___________?
Looping | |
Hacking | |
Embezzlement | |
Teeming and lading |
When issuing unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the___________?
Amount of known misstatement is documented in working papers | |
Estimates of the total likely misstatement cannot be made | |
Estimate of the total likely misstatement is more than materially level | |
Estimates of the total likely misstatement is less than materiality level |
International auditing standards are issued by the______________?
International Standards Board | |
International Federation of Accountants | |
Auditing Practices Board | |
International Accounting Standards Board |
Internal check is carried on by___________?
Supervisor of the staff | |
Staff specially appointed for the purpose | |
Internal auditor | |
Members of the staff |
Internal audit is undertaken:
Statutorily appointed auditor | |
By independent auditor | |
By a person appointed by the management | |
By a government auditor |
Institute of Chartered Accountants of Pakistan was established in____________?
1972 | |
1961 | |
1949 | |
1956 |
The independent auditor’s primary responsibility is to______________?
the directors | |
the company’s creditors (payables) | |
the shareholders | |
the company’s bank |
In Pakistan, balance sheet audit is synonymous to___________?
Continuous audit | |
Annual audit | |
Detailed audit | |
Statutory 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 | |
annual general meeting | |
extraordinary general meeting | |
General meeting |
How many Standards on Auditing have been issued?
34 | |
32 | |
36 | |
38 |
Goods sold on the basis of ‘sales or return ‘ should:
Be included in the stock | |
Not be included in the stock | |
Not be checked by auditor | |
None of the above |
Goods sent on approval basis’ have been recorded as ‘Credit sales’. This is an example of____________?
Error of duplication | |
Error of commission | |
Error of principle | |
Error of omission |
The fundamental objective of the audit of a company is to_____________?
Protect the interests of the minority shareholders | |
Assess the effectiveness of the company’s performance | |
Attest to the credibility of the company’s accounts | |
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. | |
the same firm should audit 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. |
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?
All are correct. | |
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 |
Which of the following statement is true regarding an auditor’s working papers?
They document the level of independence maintained by the auditor | |
They should not contain details regarding weaknesses in the internal control system | |
They help the auditor to monitor the effectiveness of the audit firm’s quality control | |
They should be considered as the principle support for the auditor’s report |