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