Auditing MCQs
Auditing MCQs for Test Preparation Online | Latest 2025 Quiz FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, ETEA MCQs Test Questions.
Goods sold on the basis of ˜sales or return ˜ should:
A: Be included in the stock
B: Not be included in the stock
C: Not be checked by auditor
D: None of the above
Be included in the stock
Which of the following statements is, generally, correct about the reliability of audit evidence?
A: To be reliable, evidence should conclusive rather than persuasive
B: Effective internal control system provides reliable audit evidence
C: Evidence obtained from outside sources routed through the client
D: All are correct.
Effective internal control system provides reliable audit evidence
In an audit of financial statements, substantive tests are audit procedures that __________?
A: May be eliminated for an account balance under certain conditions
B: Are designed to discover significant subsequent events
C: Will increase proportionately when the auditor decreases the assessed level of control risk
D: May be test of transactions, test of balance and analytical procedures
May be test of transactions, test of balance and analytical procedures
Window dressing implies_______________?
A: Curtailment of expenses
B: Checking of Wastages
C: Under valuation of assets
D: Over Valuation of assets
Over Valuation of assets
Test Checking refers to___________?
A: Testing of accounts and records
B: Checking of selected number of transactions
C: Examination of adjusting and closing entries
D: Checking of all transactions recorded
Checking of selected number of transactions
______the audit risks_______the materiality and_________the audit effort.
A: Lower, Higher, Lower
B: Higher, Lower, Lower
C: Lower, Higher, Higher
D: Lower, Lower, Higher
Lower, Higher, Lower
When issuing unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the___________?
A: Amount of known misstatement is documented in working papers
B: Estimates of the total likely misstatement is less than materiality level
C: Estimate of the total likely misstatement is more than materially level
D: Estimates of the total likely misstatement cannot be made
Estimates of the total likely misstatement is less than materiality level
Internal check is carried on by___________?
A: Staff specially appointed for the purpose
B: Internal auditor
C: Supervisor of the staff
D: Members of the staff
Members of the staff
Errors of Omission are_____________?
A: Technical errors
B: Errors of principle
C: Compensating errors
D: None of the above
Technical errors
Internal audit is undertaken:
A: By independent auditor
B: Statutorily appointed auditor
C: By a person appointed by the management
D: By a government auditor
By a person appointed by the management