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Auditing Mcqs

Audit in depth is synonymous for­_____________?

  • (A)  Complete audit
  • (B)  Completed audit
  • (C)  Final audit
  • (D)  Detailed audit
Submitted By :Ali Uppal


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
Submitted By :Ali Uppal


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.
Submitted By :Ali Uppal


Submitted By :Ali Uppal


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
Submitted By :Ali Uppal


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
Submitted By :Ali Uppal


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 client’s ability to continue
Submitted By :Ali Uppal


When applying analytical procedures, an auditor could develop independent estimate of an account balance to compare it to­___________?

  • (A)  client’s unedited account balance
  • (B)  client’s unedited account balance adjusted for trends in the industry
  • (C)  Prior year audited balance
  • (D)  Prior year audited balance adjusted for trends in the industry
Submitted By :Ali Uppal


Which of the following is not an analytical procedure?

  • (A)  Tracing of purchases recurred in the purchase book to purchase invoices.
  • (B)  Comparing aggregate wages paid to number of employees
  • (C)  Comparing the actual costs with standard costs
  • (D)  All of them are analytical procedure
Submitted By :Ali Uppal


What are analytical procedures?

  • (A)  Substantive tests designed to assess control risk
  • (B)  Substantive tests designed to evaluate the validity of management’s representation letter
  • (C)  Substantive tests designed to study relationships between financial and non­financial
  • (D)  All of the above
Submitted By :Ali Uppal