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Auditing Mcqs

In determining the level of materiality for an audit, what should not be considered?

  • (A)  Prior year’s errors
  • (B)  The auditor’s remuneration
  • (C)  Adjusted interim financial statements
  • (D)  Prior year’s financial statements
Submitted By :Ali Uppal

When issuing unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the___________?

  • (A)  Amount of known misstatement is documented in working papers
  • (B)  Estimates of the total likely misstatement is less than materiality level
  • (C)  Estimate of the total likely misstatement is more than materially level
  • (D)  Estimates of the total likely misstatement cannot be made
Submitted By :Ali Uppal

______the audit risks_______the materiality and_________the audit effort.

  • (A)  Lower, Higher, Lower
  • (B)   Lower, Lower, Higher
  • (C)  Higher, Lower, Lower
  • (D)  Lower, Higher, Higher
Submitted By :Ali Uppal

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)  Auditor’s consideration of materiality is influenced by the auditor’s 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
Submitted By :Ali Uppal

Test Checking refers to___________?

  • (A)  Testing of accounts and records
  • (B)  Checking of selected number of transactions
  • (C)  Examination of adjusting and closing entries
  • (D)  Checking of all transactions recorded
Submitted By :Ali Uppal

Window dressing implies_______________?

  • (A)  Curtailment of expenses
  • (B)  Checking of Wastages
  • (C)  Under valuation of assets
  • (D)  Over Valuation of assets
Submitted By :Ali Uppal

Errors of Omission are_____________?

  • (A)  Technical errors
  • (B)  Errors of principle
  • (C)  Compensating errors
  • (D)  None of the above
Submitted By :Ali Uppal

Internal check is carried on by___________?

  • (A)  Staff specially appointed for the purpose
  • (B)  Internal auditor
  • (C)  Supervisor of the staff
  • (D)  Members of the staff
Submitted By :Ali Uppal

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
Submitted By :Ali Uppal

Submitted By :Ali Uppal

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