Auditing MCQs

A: Until the audit is complete

B: Until the financial statements are complete

C: Until the next AGM (Annual General Meeting)

D: Until the directors remove them

A: A matter is material only if it changes the audit report

B: A matter is material if the auditor and the directors both decide that further work needs to be done in the area under question

C: A matter is material only if it affects directors emoluments

D: A matter is material if its omission or misstatement would reasonably influence the decisions of an addressee of the auditors report

A: Blood haunt

B: Watch dog

C: May both according to situation

D: None of these

A: Auditing

B: Testing

C: Vouching

D: Verification

A: Small scale business

B: Partnership firms

C: Joint stock Companies

D: Proprietary Concerns

A: Embezzlement

B: Misappropriation

C: Lapping

D: None of these

A: Protect the interests of the minority shareholders

B: Detect and prevent errors and fraud

C: Assess the effectiveness of the companys performance

D: Attest to the credibility of the companys accounts

A: Are responsible for ensuring that the company complies with the law

B: Are responsible for ensuring that the company pays its tax by the due date

C: Safeguard the companys assets and manage them on behalf of the shareholders

D: Report suspected fraud and money laundering to the authorities

A: Because they are easier to audit

B: Because it reduces the audit time

C: Because the risk to the accounts of their being incorrectly stated is greater

D: Because the directors have asked for it

A: Reporting to the shareholders on the accuracy of the accounts

B: Establishment of internal controls

C: Keeping proper accounting records

D: Supplying information and explanations to the auditor