Auditing Quiz 3
1 / 50
A sale of Rs. 50.000 to A was entered as a sale to B This is an example of____________?
2 / 50
Which of the following is normally the most reliable source of audit evidence?
3 / 50
If a casual vacancy in the office of auditor arises by his resignation it should only be filled by the company in a_________?
4 / 50
Analytical procedures issued in the planning stage of an audit, generally
5 / 50
Audit in depth is synonymous for?_____________?
6 / 50
Balance sheet audit includes verification of____________?
7 / 50
The authority to remove the first auditor before the expiry of term is with__________?
8 / 50
Audit in depth is synonymous for____________?
9 / 50
Which of the following is NOT an accepted method of selection in sampling?
10 / 50
Which of the following is correct in relation to materiality?
11 / 50
Who is responsible for the appointment of statutory auditor of a limited company ?
12 / 50
According to ISA 500, the strength of audit evidence is determined by which two qualities?
13 / 50
If the book value of an asset stands at________per cent of the original cost, a company need not provide depreciation on it.
14 / 50
Which of the following expenses should not be treated as capital expenditure?
15 / 50
Which of the following is true about written representations?
16 / 50
Audit risk is composed of 3 factors. Which of the following is NOT one of those factors?
17 / 50
Which of the following statements is, generally, correct about the reliability of auditevidence?
18 / 50
The nature, timing and extent of substantive procedures is related to assessed level of control risk
19 / 50
______the audit risks_______the materiality and_________the audit effort.
20 / 50
Stock should be valued at_________?
21 / 50
Which of the following is not an advantage of the preparation of working paper?
22 / 50
The auditor should examine subsequent realization of revenue such as dividends, interest,commission, etc to:?_____________?
23 / 50
Which one of the following is NOT a duty of the auditor?
24 / 50
An auditor should not accept a loan on favourable commercial terms from an audit client because of the threat to his or her independence. The threat would be a___________?
25 / 50
Audit programme is prepared by____________?
26 / 50
The client changed method of depreciation from straight line to written down value method. This has been disclosed as a note to the financial statements. It has an immaterial effect on the current financial statements. It is expected, however, that the change will have a significant effect on future periods. Which of the following option should the auditor express?
27 / 50
The board of directors shall appoint first auditor of a company
28 / 50
The quantity of audit working papers complied on engagement would most be affected by__________?
29 / 50
Goods sold on the basis of ?sales or return ? should:
30 / 50
Which one of the following is part of the auditor?s function?
31 / 50
An auditor is like a_______________?
32 / 50
A statutory auditor has a right of access at all times to___________?
33 / 50
Who out of the following cannot be appointed as a statutory auditor of the company?
34 / 50
Test Checking refers to___________?
35 / 50
When an auditor is proposed for removal from office, which one of the following is he NOT permitted to do?
36 / 50
Which of the following describes sampling risk?
37 / 50
Concealment of shortage by delaying the recording of cash receipts is known as_____________?
38 / 50
Auditing is what?
39 / 50
What would most appropriately describe the risk of incorrect rejection in terms of substantive testing?
40 / 50
Process of verifying the documentary evidences of transactions are known as___________?
41 / 50
The fundamental objective of the audit of a company is to_____________?
42 / 50
In an audit of financial statements, substantive tests are audit procedures that __________?
43 / 50
Which of the following affects audit effectiveness?
44 / 50
When is evidential matter, generally, considered sufficient?
45 / 50
Pick the odd one:
46 / 50
According to ISA 315, which of the following is NOT an element of the control environment?
47 / 50
Which of the following factors is most important in determining the appropriations of audit evidence?
48 / 50
When issuing unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the_____________?
49 / 50
Errors of Omission are_____________?
50 / 50
The auditor has serious concern about the going concern of the company. It is dependent on company?s obtaining a working capital loan from a bank which has been applied for. The management of the company has made full disclosure of these facts in the notes to the balance sheet. The auditor is satisfied with the level of disclosure. He should issue___________?
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