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 best describes the primary purpose of audit programme preparation?
A: To detect errors or fraud
B: To comply with GAAP appropriate evidence
C: To gather sufficient
D: To assess audit risk
To gather sufficient
Which of the following is not 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
Audit programme is prepared by____________?
A: The auditor
B: The client
C: The audit assistants
D: The auditor and his audit assistants
The auditor and his audit assistants
The working papers which auditor prepares for financial statements audit are___________?
A: Evidence for audit conclusions
B: Owned by the client
C: Owned by the auditor
D: Retained in auditors office until a change in auditors
Owned by the auditor
The quantity of audit working papers complied on engagement would most be affected by__________?
A: Managements integrity
B: Auditors experience and professional judgment
C: Auditors qualification
D: Control risk
Auditors experience and professional judgment
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
Floating assets are valued at____________?
A: cost
B: Market price
C: Cost or market price whichever is lower
D: Cost less depreciation
Cost or market price whichever is lower
Goods sold on the basis of sales or return should:
A: Be included in the stock
B: Not be included in the stock
C: Not be checked by auditor
D: None of the above
Be included in the stock
Which of the following statements is, generally, correct about the reliability of audit evidence?
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
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