Concurrent audit is a part of____________?
A. Internal check system
B. Continuous audit
C. Internal audit system
D. None of these
Continue reading “Concurrent audit is a part of____________?”
Category: Audit Mcqs
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
The fundamental objective of the audit of a company is to_____________??
A. Protect the interests of the minority shareholders
B. Detect and prevent errors and fraud
C. Assess the effectiveness of the company’s performance
D. Attest to the credibility of the company’s accounts
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
Goods sold on the basis of ‘sales or return ‘ should:?
A. Be included in the stock
B. Not be included in the stock
C. Not be checked by auditor
D. None of the above
Stock should be valued at_________??
A. Cost
B. Market price
C. Cost or Market price whichever is lower.
D. Cost less depreciation.
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
Which of the following statements is, generally, correct about the reliability of audit evidence??
A. To be reliable, evidence should conclusive rather than persuasive
B. Effective internal control system provides reliable audit evidence
C. Evidence obtained from outside sources routed through the client
D. All are correct.
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.
Assuming that it is not the first appointment of the auditor, who is responsible for the appointment of the auditor??
A. The shareholders in a general meeting
B. The managing director
C. The board of directors in a board meeting
D. The audit committee
