Auditing MCQs

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What are analytical procedures?

A.Substantive tests designed to evaluate the validity of management’s representation letter

B.Substantive tests designed to study relationships between financial and nonfinancial

C.Substantive tests designed to assess control risk

D.All of the above

Submitted by: Academy of Pakistan

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

A.A flowchart of the internal controls

B.Organisation charts

C.Copies of bond and debentures

D.A copy of financial statements

Submitted by: Academy of Pakistan

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Which of the following describes sampling risk?

A.The risk of the auditor reaching the wrong conclusions from testing

B.The risk of reliance on unsuitable audit evidence

C.The risk of the auditor carrying out a test the wrong way round

D.The risk that the sample does not reflect the population

Submitted by: Academy of Pakistan

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Which of the following documents is not relevant for vouching cash sales?

A.Daily cash sales summary

B.Bank statement

C.Salesmen’s summary

D.Monthly statements sent to customers

Submitted by: Academy of Pakistan

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Audit of banks is an example of_____________?

A.Balance sheet audit

B.Statutory audit

C.All of the above

D.Concurrent audit

Submitted by: Academy of Pakistan

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Balance sheet audit includes verification of____________?

A.All of the above

B.Income and expense accounts where appropriate

C.Assets

D.Liabilities

Submitted by: Academy of Pakistan

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The auditor should examine subsequent realization of revenue such as dividends, interest,commission, etc to:_____________?

A.ensure proper disclosure in the balance sheet

B.recompute accrued income on the data of balance sheet

C.Any of these

D.identify cases of unrecorded revenue

Submitted by: Academy of Pakistan

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Which one of the following is NOT a duty of the auditor?

A.Duty to report on any violation of law

B.Duty to report to the company’s bankers

C.Duty to sign the audit report

D.Duty to report to the members

Submitted by: Academy of Pakistan

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Auditing is what?

A.maintaining the ledger records

B.Preparation financial statements

C.Reporting the financial information

D.Examination of financial statements

Submitted by: Academy of Pakistan

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The main object of an audit is _____________?

A.Both (A) and (B)

B.Expression of opinion

C.Detection and Prevention of fraud and error

D.Depends on the type of audit.

Submitted by: Academy of Pakistan

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Internal check is carried on by___________?

A.Internal auditor

B.Supervisor of the staff

C.Members of the staff

D.Staff specially appointed for the purpose

Submitted by: Academy of Pakistan

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The nature, timing and extent of substantive procedures is related to assessed level of control risk

A.Disproportionately

B.Randomly

C.Inversely

D.Directly

Submitted by: Academy of Pakistan

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When an auditor is proposed for removal from office, which one of the following is he NOT permitted to do?

A.Receive notification of the AGM/EGM where the removal is proposed

B.Circulate representations to members

C.Apply to the court to have the proposal removed

D.Speak at the AGM/EGM where the removal is proposed

Submitted by: Academy of Pakistan

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Which of the following is not an analytical procedure?

A.All of them are analytical procedure

B.Comparing aggregate wages paid to number of employees

C.Tracing of purchases recurred in the purchase book to purchase invoices.

D.Comparing the actual costs with standard costs

Submitted by: Academy of Pakistan

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How long is the auditor’s term of office?

A.Until the directors remove them

B.Until the audit is complete

C.Until the financial statements are complete

D.Until the next AGM (Annual General Meeting)

Submitted by: Academy of Pakistan

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Auditing MCQs

What are analytical procedures?

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

Which of the following describes sampling risk?

Which of the following documents is not relevant for vouching cash sales?

Audit of banks is an example of_____________?

Balance sheet audit includes verification of____________?

The auditor should examine subsequent realization of revenue such as dividends, interest,commission, etc to:­_____________?

Which one of the following is NOT a duty of the auditor?

Auditing is what?

The main object of an audit is _____________?

Internal check is carried on by___________?

The nature, timing and extent of substantive procedures is related to assessed level of control risk

When an auditor is proposed for removal from office, which one of the following is he NOT permitted to do?

Which of the following is not an analytical procedure?

How long is the auditor’s term of office?

The auditor should examine subsequent realization of revenue such as dividends, interest,commission, etc to:_____________?