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: International Accounting Standards Board

B: International Federation of Accountants

C: International Standards Board

D: Auditing Practices Board

A: The auditor should express an opinion on financial statements.

B: His opinion is no guarantee to future viability of business

C: He is responsible for detection and prevention of frauds and errors in financial statements

D: He should examine whether recognised accounting principle have been consistently

A: Circulate representations to members

B: Apply to the court to have the proposal removed

C: Speak at the AGM/EGM where the removal is proposed

D: Receive notification of the AGM/EGM where the removal is proposed

A: Duty to report to the companys bankers

B: Duty to report to the members

C: Duty to sign the audit report

D: Duty to report on any violation of law

A: Expression of opinion

B: Detection and Prevention of fraud and error

C: Both (A) and (B)

D: Depends on the type of audit.

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