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Auditing Mcqs

In Pakistan, balance sheet audit is synonymous to___________?

  • (A)  Annual audit
  • (B)  Continuous audit
  • (C)  Detailed audit
  • (D)  Statutory audit
Submitted By :Ali Uppal

Audit of banks is an example of__________?

  • (A)  Statutory audit
  • (B)  Balance sheet audit
  • (C)  Concurrent audit
  • (D)  Both (
Submitted By :Ali Uppal

Auditing is what?

  • (A)  Reporting the financial information
  • (B)  Examination of financial statements
  • (C)  Preparation financial statements
  • (D)  maintaining the ledger records
Submitted By :Ali Uppal

The current file of the auditor’s working papers, generally, should include____________?

  • (A)  A flowchart of the internal controls
  • (B)  Organisation charts
  • (C)  A copy of financial statements
  • (D)  Copies of bond and debentures
Submitted By :Ali Uppal

Which of the following statement best describes the understanding with respect to ownership and custody of working papers prepared by an auditor?

  • (A)  The working papers may be obtained by third parties when they appear to be relevant to issues raised in litigation
  • (B)  The safe custody of working papers is the responsibility of client, if kept at his premises
  • (C)  The working papers must be retained by an audit firm for a period of 10 years
  • (D)  Successor auditors may have access to working papers of the predecessor auditors. The approval of client is not required.
Submitted By :Ali Uppal

Which of the following statement is true regarding an auditor’s working papers?

  • (A)  They document the level of independence maintained by the auditor
  • (B)  They should be considered as the principle support for the auditor’s report
  • (C)  They should not contain details regarding weaknesses in the internal control system
  • (D)  They help the auditor to monitor the effectiveness of the audit firm’s quality control
Submitted By :Ali Uppal

Which of the following factors would least likely affect the quantity and content of an auditor’s working papers

  • (A)  The assessed level of control risk
  • (B)  The possibility of peer review
  • (C)  The nature of auditor’s report
  • (D)  The content of management representation letter
Submitted By :Ali Uppal

For what minimum period should audit working papers be retained by audit firm?

  • (A)  For the time period the entity remains a client of the audit firm.
  • (B)  For a period of ten years
  • (C)  For a period auditor opines them to be useful in servicing the client
  • (D)  For the period the audit firm is in existenc
Submitted By :Ali Uppal

The auditor’s permanent working paper file should not normally, include__________?

  • (A)  Extracts from client’s bank statements
  • (B)  Past year’s financial statements
  • (C)  Attorney’s letters
  • (D)  Debt agreements
Submitted By :Ali Uppal

Which of the following is not an advantage of the preparation of working paper?

  • (A)  To provide a basis for review of audit work
  • (B)  To provide a basis for subsequent audits
  • (C)  To ensure audit work is being carried out as per programme
  • (D)  To provide a guide for advising another client on similar issues
Submitted By :Ali Uppal

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