The scope of internal audit is decided by the___________??
A. Shareholders
B. Management
C. Government
D. Law
Category: Audit Mcqs
The main object of an audit is _____________??
A. Expression of opinion
B. Detection and Prevention of fraud and error
C. Both (A) and (B)
D. Depends on the type of audit.
Analytical procedures issued in the planning stage of an audit, generally?
A. Helps to determine the nature, timing and extent of other audit procedures
B. Directs attention to potential risk areas
C. Indicates important aspects of business
D. All of the above
The concept of stewardship means that a company’s directors________________??
A. Are responsible for ensuring that the company complies with the law
B. Are responsible for ensuring that the company pays its tax by the due date
C. Safeguard the company’s assets and manage them on behalf of the shareholders
D. Report suspected fraud and money laundering to the authorities
The nature, timing and extent of substantive procedures is related to assessed level of control risk?
A. Randomly
B. Disproportionately
C. Directly
D. Inversely
Concealment of shortage by delaying the recording of cash receipts is known as_____________??
A. Embezzlement
B. Misappropriation
C. Lapping
D. None of these
Test Checking refers to___________??
A. Testing of accounts and records
B. Checking of selected number of transactions
C. Examination of adjusting and closing entries
D. Checking of all transactions recorded
Which of the following is not true about opinion on financial statements??
A. The auditor should express an opinion on financial statements.
B. His opinion is no guarantee to future viability of business
C. He is responsible for detection and prevention of frauds and errors in financial statements
D. He should examine whether recognised accounting principle have been consistently
Which of the following is NOT an accepted method of selection in sampling??
A. Systematic selection
B. Pervasive selection
C. Random selection
D. Haphazard selection
Which one of the following is NOT a duty of the auditor??
A. Duty to report to the company’s bankers
B. Duty to report to the members
C. Duty to sign the audit report
D. Duty to report on any violation of law
