🔍Auditing MCQs
Auditing MCQs
122 MCQs111
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___________?
ASelf-interest threat
BSelf-review threat
CAdvocacy threat
DFamiliarity threat
112
Which of the following statements is INCORRECT?
AAn auditor may serve on the board of directors of an audit client.
BAn auditor who is an immediate family member of the director of an audit client must not be assigned to the audit team.
CPurchasing goods from an audit client on normal commercial terms does not create a threat to the auditor’s independence.
DAn auditor who was recently a director of an audit client must not be assigned to the audit team for that client.
113
Which of the following is true about written representations?
AThey are the best source of audit evidence
BThey should be used only when there is a lack of other substantive audit evidence
CThey should be used only when there is other substantive audit evidence to complement it
DShareholders receive a copy of all material written representations
114
Which of the following would you not use as a benchmark for comparison when undertaking analytical procedures?
AOther audit clients
BPrevious years
COther companies in the same industry
DBudget
115
What is meant by the expression ‘expectation gap’?
AThe gap between how the directors of a company perform their duties and how the shareholders expect them to perform
BThe gap between how the directors of a company perform their duties and how the general public expects them to perform
CThe gap between the public perception of the role of company auditors and their statutory role and responsibilities
DThe gap between the auditors’ own perception of their duties and how they are set out in the Companies Act
116
Scope of financial audit is__________?
🔍AuditingBy: ALIYA NAWAZ
Aand (
BD. None of these
CBoth (
117
Auditing engagement can be performed w.r.t.
🔍AuditingBy: ALIYA NAWAZ
AProfit making entity
BNon-profit making entity
CCorporate entity only
DAny entity
118
How many Standards on Auditing have been issued?
🔍AuditingBy: ALIYA NAWAZ
A32
B34
C36
D38
119
Which of the following is not type of engagement standard?
🔍AuditingBy: ALIYA NAWAZ
AStandards on Auditing
BStandard on Quality Control
CStandards on Review Engagement
DStandards on Assurance Engagement
120
Pick the odd one:
🔍AuditingBy: ALIYA NAWAZ Auditors do not prepare the vouchers
AChecking the vouchers
BPreparation of vouchers
CEvaluation of internal control
DNone of the above