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.
According to ISA 500, the strength of audit evidence is determined by which two qualities?
A: Appropriateness & competence
B: Sufficiency & appropriateness
C: Reliability & extensiveness
D: Objectivity & independence
Sufficiency & appropriateness
Audit risk is composed of 3 factors. Which of the following is NOT one of those factors?
A: Compliance risk
B: Detection risk
C: Control risk
D: Inherent risk
Compliance risk
Which of the following should NOT be considered at the planning stage?
A: The timing of the audit
B: Analytical review
C: Last years written representation letter
D: Obtaining written representations
Obtaining written representations
At the planning stage you would NOT consider____________?
A: the timing of the audit
B: whether corrections from the inventory count have been implemented
C: last years audit
D: the potential use of internal audit
whether corrections from the inventory count have been implemented
Which of the following describes sampling risk?
A: The risk of the auditor carrying out a test the wrong way round
B: The risk of reliance on unsuitable audit evidence
C: The risk that the sample does not reflect the population
D: The risk of the auditor reaching the wrong conclusions from testing
The risk that the sample does not reflect the population
Which of the following is NOT an accepted method of selection in sampling?
A: Systematic selection
B: Pervasive selection
C: Random selection
D: Haphazard selection
Pervasive selection
Which of the following are you unlikely to see in the current file of auditors working papers?
A: Memorandum & articles of association
B: Audit planning memorandum
C: Summary of unadjusted errors
D: Details of the work done on the inventory count
Memorandum & articles of association
Which one of the following is NOT considered to be part of planning?
A: Background i.
B: industry
C: Previous years audit i.
D: any qualifications in the report
E: Considering the work to be done by the client staff e.g. internal audit
Considering whether the financial statements show a true and fair view
Assuming that it is not the first appointment of the auditor, who is responsible for the appointment of the auditor?
A: The shareholders in a general meeting
B: The managing director
C: The board of directors in a board meeting
D: The audit committee
The shareholders in a general meeting
The independent auditors primary responsibility is to______________?
A: the directors
B: the companys creditors (payables)
C: the companys bank
D: the shareholders
the shareholders