Audit of banks is an example of_____________??
A. Statutory audit
B. Balance sheet audit
C. Concurrent audit
D. All of the above
Category: Audit Mcqs
______the audit risks_______the materiality and_________the audit effort.?
A. Lower, Higher, Lower
B. Lower, Lower, Higher
C. Higher, Lower, Lower
D. Lower, Higher, Higher
Which of the following statements is not correct about materiality??
A. Materiality is a relative concept
B. Materiality judgments involve both quantitative and qualitative judgments
C. Auditor’s consideration of materiality is influenced by the auditor’s perception of the needs of an informed decision maker who will rely on the financial statements
D. At the planning state, the auditor considers materiality at the financial statement level only
For what minimum period should audit working papers be retained by audit firm??
A. For the time period the entity remains a client of the audit firm.
B. For a period of ten years
C. For a period auditor opines them to be useful in servicing the client
D. For the period the audit firm is in existence.
Which of the following should NOT be considered at the planning stage??
A. The timing of the audit
B. Analytical review
C. Last year’s written representation letter
D. Obtaining written representations
Which of the following is NOT the responsibility of a company’s directors??
A. Reporting to the shareholders on the accuracy of the accounts
B. Establishment of internal controls
C. Keeping proper accounting records
D. Supplying information and explanations to the auditor
Lapping is also known as___________??
A. Teeming and lading
B. Looping
C. Embezzlement
D. Hacking
When issuing unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the___________??
A. Amount of known misstatement is documented in working papers
B. Estimates of the total likely misstatement is less than materiality level
C. Estimate of the total likely misstatement is more than materially level
D. Estimates of the total likely misstatement cannot be made
Which of the following statements is most closely associated with analytical procedure applied at substantive stage??
A. It helps to study relationship among balance sheet accounts
B. It helps to discover material misstatements in the financial statements
C. It helps to identify possible oversights
D. It helps to accumulate evidence supporting the validity of a specific account balance
The independent auditor’s primary responsibility is to______________??
A. the directors
B. the company’s creditors (payables)
C. the company’s bank
D. the shareholders
