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 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
Which of the following statements is not true about continuous audit?
A: It is conducted at regular interval
B: It may be carried out on daily basis
C: It is needed when the organization has a good internal control system
D: It is expensive
It is needed when the organization has a good internal control system
Which of the following statements is not correct about materiality?
A: Materiality is a relative concept
B: Materiality judgments involve both quantitative and qualitative judgments
C: Auditors consideration of materiality is influenced by the auditors perception of the needs of an informed decision maker who will rely on the financial statements
D: At the planning state, the auditor considers materiality at the financial statement level only
At the planning state, the auditor considers materiality at the financial statement level only
Audit in depth is synonymous for_____________?
A: Complete audit
B: Completed audit
C: Final audit
D: Detailed audit
Detailed audit
Balance sheet audit includes verification of____________?
A: Assets
B: Income and expense accounts where appropriate
C: Liabilities
D: All of the above
All of the above
In determining the level of materiality for an audit, what should not be considered?
A: Prior years errors
B: The auditors remuneration
C: Adjusted interim financial statements
D: Prior years financial statements
The auditors remuneration
Balance sheet does not include:_____________?
A: Verification of assets and liabilities
B: Vouching of income and expense accounts related to assets and liabilities
C: Examination of adjusting and closing entries
D: Routine checks
Routine checks
_______the audit risk,_______the materiality and _______the audit effort?
A: Lower, Higher, Lower
B: Lower, Lower, Higher
C: Higher, Lower, Lower
D: Lower, Higher, Higher
Lower, Higher, Lower