Category: Audit Mcqs

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.

A. The shareholders in a general meeting  
B. The managing director
C. The board of directors in a board meeting
D. The audit committee

A. Technical errors 
B. Errors of principle
C. Compensating errors
D. None of the above

A. To inspect
B. To examine 
C. To hear 
D. To investigate

A. Appropriateness

A. International Accounting Standards Board
B. Financial Accounting Standards Board 
C. International Standards Board 
D. Auditing Practices Board

A. Internal audit 
B. Suppliers’ statements 
C. Board minutes
D. Analytical review

A. Prior year’s errors 
B. The auditor’s remuneration  
C. Adjusted interim financial statements
D. Prior year’s financial statements

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

A. Minutes of meetings
B. Confirmations from debtors
C. Information gathered by auditor through observation 
D. Worksheet supporting consolidated financial statements