Auditing MCQs with Explanations

Explanation

They should be used only when there is a lack of other substantive audit evidence is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

Prior year audited balance adjusted for trends in the industry is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

Obtaining and evaluating audit evidence on the financial statements is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

They should be considered as the principle support for the auditor’s report is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

Carbon copies of sales invoices inspected by the auditor is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

Owned by the auditor is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

Memorandum & articles of association is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

The auditor has ascertained that the balance is materially correct when in actual fact it is not is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

Compliance risk is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

The design of the internal control system and the implementation of the controls is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.