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Auditing Mcqs

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
Submitted By :Ali Uppal


The quantity of audit working papers complied on engagement would most be affected by__________?

  • (A)  Management’s integrity
  • (B)  Auditor’s experience and professional judgment
  • (C)  Auditor’s qualification
  • (D)  Control risk
Submitted By :Ali Uppal


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 auditor’s office until a change in auditors
Submitted By :Ali Uppal


Audit programme is prepared by____________?

  • (A)  The auditor
  • (B)  The client
  • (C)  The audit assistants
  • (D)  The auditor and his audit assistants
Submitted By :Ali Uppal


What would most effectively describe the risk of incorrect acceptance in terms of substantive audit testing?

  • (A)  The auditor has ascertained that the balance is materially correct when in actual fact it is not
  • (B)  The auditor concludes the balance is materially misstated when in actual fact is not
  • (C)  The auditor has rejected an item from sample which was not supported by documentary evidence
  • (D)  He applies random sampling on data which is inaccurate and inconsistent
Submitted By :Ali Uppal


Which of the following affects audit effectiveness?

  • (A)  Risk of over reliance
  • (B)  Risk of incorrect rejection
  • (C)  Risk of incorrect acceptance
  • (D)  Both A and C
Submitted By :Ali Uppal


What would most appropriately describe the risk of incorrect rejection in terms of substantive testing?

  • (A)  The auditor concludes balance is materially correct when in actual fact it is not
  • (B)  The auditor concludes that the balance is materially misstated when in actual fact it not
  • (C)  The auditor has rejected an item for sample which was material
  • (D)  None of the above
Submitted By :Ali Uppal


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
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 factors is most important in determining the appropriations of audit evidence?

  • (A)  The reliability of audit evidence and its relevance in meeting the audit objective
  • (B)  The objectivity and integrity of the auditor
  • (C)  The quantity of audit evidence
  • (D)  The independence of the source of evidence
Submitted By :Ali Uppal