Get App on

Play Store

Auditing Mcqs

The auditor has a right to­___________?

  • (A)  Obtain information and explanation
  • (B)  Obtain information and explanation from the employees and officers
  • (C)  Obtain information and explanation necessary for the purpose of audit
  • (D)  Both
Submitted By :Ali Uppal

Which of the following is true about written representations?

  • (A)  They are the best source of audit evidence
  • (B)  They should be used only when there is a lack of other substantive audit evidence
  • (C)  They should be used only when there is other substantive audit evidence to complement it
  • (D)  Shareholders receive a copy of all material written representations
Submitted By :Ali Uppal

Which of the following would you not use as a benchmark for comparison when undertaking analytical procedures?

  • (A)  Other audit clients
  • (B)  Previous years
  • (C)  Other companies in the same industry
  • (D)  Budget
Submitted By :Ali Uppal

What is meant by the expression ‘expectation gap’?

  • (A)  The gap between how the directors of a company perform their duties and how the shareholders expect them to perform
  • (B)  The gap between how the directors of a company perform their duties and how the general public expects them to perform
  • (C)  The gap between the public perception of the role of company auditors and their statutory role and responsibilities
  • (D)  The gap between the auditors’ own perception of their duties and how they are set out in the Companies Act
Submitted By :Ali Uppal

Which of the following does NOT belong in the auditors’ report?

  • (A)  Introductory paragraph specifying the pages to which the report relates and the accounting convention adopted
  • (B)  Basis of the opinion
  • (C)  Involvement of any specialist
  • (D)  Statement of responsibilities of directors and auditors
Submitted By :Ali Uppal

Which one of the following is part of the auditor’s function?

  • (A)  Conducting the inventory count
  • (B)  Obtaining and evaluating audit evidence on the financial statements
  • (C)  Calculating the year-end accruals figure for inclusion in the accounts
  • (D)  Providing representations to management
Submitted By :Ali Uppal

What sort of assurance is provided in a review engagement?

  • (A)  Positive assurance
  • (B)  Negative assurance
  • (C)  High level of assurance
  • (D)  No assurance
Submitted By :Ali Uppal

Which of the following statements is correct?

  • (A)  When a company negotiates a ‘friendly’ takeover, it usually appoints a firm of accountants to carry out due diligence on the takeover target.
  • (B)  In an attestation engagement, the accountant is required to report on the quality of work performed.
  • (C)  In a review engagement, evidence is gathered mainly by means of computation and inspection.
  • (D)  In an engagement to review financial statements, the amount of work required is the same as for an audit
Submitted By :Ali Uppal

For companies required to produce interim financial statements (IFI):

  • (A)  one audit firm should audit the IFI and a different firm should audit the financial statements for the year as a whole.
  • (B)  one accountancy firm should review the IFI and a different firm should audit the financial statements for the year as a whole.
  • (C)  the same firm should audit the IFI and the financial statements for the year as a whole.
  • (D)  the same firm should review the IFI and the financial statements for the year as a whol
Submitted By :Ali Uppal

What is meant by negative assurance?

  • (A)  The auditor cannot give an opinion due to lack of evidence.
  • (B)  The client’s financial statements were found to be materially misstated.
  • (C)  The auditor could not conduct any tests due to lack of controls.
  • (D)  The auditor did not find anything to indicate that a material misstatement exists.
Submitted By :Ali Uppal

Submit Your Mcqs


Mcqs Home Categories


Management Sciences


Engineering Subjects


Medical Subjects


LIKE US ON