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.
How long is the auditors term of office?
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
Until the next AGM (Annual General Meeting)
Which of the following is correct in relation to materiality?
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 matter is material if its omission or misstatement would reasonably influence the decisions of an addressee of the auditors report
The fundamental objective of the audit of a company is to_____________?
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
Attest to the credibility of the companys accounts
The concept of stewardship means that a companys directors________________?
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
Safeguard the companys assets and manage them on behalf of the shareholders
Why do auditors concentrate their efforts on material items in accounts?
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
Because the risk to the accounts of their being incorrectly stated is greater
Which of the following is NOT the responsibility of a companys directors?
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
Reporting to the shareholders on the accuracy of the accounts
International auditing standards are issued by the______________?
A: International Accounting Standards Board
B: International Federation of Accountants
C: International Standards Board
D: Auditing Practices Board
International Federation of Accountants
Which of the following is not true about opinion on financial statements?
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
He is responsible for detection and prevention of frauds and errors in financial statements
When an auditor is proposed for removal from office, which one of the following is he NOT permitted to do?
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
Apply to the court to have the proposal removed
Which one of the following is NOT a duty of the auditor?
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
Duty to report to the companys bankers