Errors of Omission are_____________??
A. Technical errors
B. Errors of principle
C. Compensating errors
D. None of the above
Category: Audit Mcqs
The term ‘Audit’ is derived from a Latin word “audire” which means___________??
A. To inspect
B. To examine
C. To hear
D. To investigate
International auditing standards are issued by the______________??
A. International Accounting Standards Board
B. Financial Accounting Standards Board
C. International Standards Board
D. Auditing Practices Board
Which of the following is normally the most reliable source of audit evidence??
A. Internal audit
B. Suppliers’ statements
C. Board minutes
D. Analytical review
In determining the level of materiality for an audit, what should not be considered??
A. Prior year’s errors
B. The auditor’s remuneration
C. Adjusted interim financial statements
D. Prior year’s financial statements
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
Which of the following is not corroborative evidence??
A. Minutes of meetings
B. Confirmations from debtors
C. Information gathered by auditor through observation
D. Worksheet supporting consolidated financial statements
What would most appropriately describe the risk of incorrect rejection in terms of substantive testing??
A. The auditor concludes balance is materially correct when in actual fact it is not
B. The auditor concludes that the balance is materially misstated when in actual fact it not
C. The auditor has rejected an item for sample which was material
D. None of the above
When is evidential matter, generally, considered sufficient??
A. When it constitutes entire population
B. When it is enough to provide a basis for giving reasonable assurance regarding truthfulness
C. When it is objective and relevant
D. When auditor collects and evaluates it independently
