Auditing MCQs
Auditing MCQs for Test Preparation Online | Latest 2021 Quiz FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, ETEA MCQs Test Questions.
Which of the following is not a corroborative evidence?
A: Minutes of meetings
B: Confirmations from debtors
C: Information gathered by auditor through observation
D: Worksheet supporting consolidated financial statements
Worksheet supporting consolidated financial statements
The nature, timing and extent of substantive procedures is _________ related to assessed level of control risk?
A: randomly
B: disproportionately
C: directly
D: inversely
directly
Which of the following statements is, generally, correct about the reliability of auditevidence?
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
When is evidential matter, generally, considered sufficient?
A: When it constitutes entire population
B: When it is enough to provide a basis for giving reasonable assurance regarding truthfulness
C: When it is objective and relevant
D: When auditor collects and evaluates it independently
When it is enough to provide a basis for giving reasonable assurance regarding truthfulness
Of the following, which is the least persuasive type of audit evidence?
A: Bank statements obtained from the client
B: Documents obtained by auditor from third parties directly.
C: Carbon copies of sales invoices inspected by the auditor
D: Computations made by the auditor
Carbon copies of sales invoices inspected by the auditor
What is the primary objective of analytical procedures used in the overall review stage of an audit?
A: To help to corroborate the conclusions drawn from individual components of financial statements
B: To reduce specific detection risk
C: To direct attention to potential risk areas
D: To satisfy doubts when questions arise about a clients ability to continue
To help to corroborate the conclusions drawn from individual components of financial statements
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
Which of the following statements is most closely associated with analytical procedure applied at substantive stage?
A: It helps to study relationship among balance sheet accounts
B: It helps to discover material misstatements in the financial statements
C: It helps to identify possible oversights
D: It helps to accumulate evidence supporting the validity of a specific account balance
It helps to accumulate evidence supporting the validity of a specific account balance
Analytical procedures issued in the planning stage of an audit, generally?
A: helps to determine the nature, timing and extent of other audit procedures
B: directs attention to potential risk areas
C: indicates important aspects of business
D: All of the above
All of the above
The basic assumption underlying the use of analytical procedures is:____________?
A: It helps the auditor to study relationship among elements of financial information
B: Relationship among data exist and continue in the absence of known condition to the contrary
C: Analytical procedures will not be able to detect unusual relationships
D: None of the above.
Relationship among data exist and continue in the absence of known condition to the contrary