🔍Auditing MCQs
Auditing MCQs
122 MCQs11
When an auditor is proposed for removal from office, which one of the following is he NOT permitted to do?
ACirculate representations to members
BApply to the court to have the proposal removed
CSpeak at the AGM/EGM where the removal is proposed
DReceive notification of the AGM/EGM where the removal is proposed
12
Which of the following is not true about opinion on financial statements?
AThe auditor should express an opinion on financial statements.
BHis opinion is no guarantee to future viability of business
CHe is responsible for detection and prevention of frauds and errors in financial statements
DHe should examine whether recognised accounting principle have been consistently
13
International auditing standards are issued by the______________?
AInternational Accounting Standards Board
BInternational Federation of Accountants
CInternational Standards Board
DAuditing Practices Board
14
Which of the following is NOT the responsibility of a company’s directors?
AReporting to the shareholders on the accuracy of the accounts
BEstablishment of internal controls
CKeeping proper accounting records
DSupplying information and explanations to the auditor
15
At the planning stage you would NOT consider____________?
Athe timing of the audit
Bwhether corrections from the inventory count have been implemented
Clast year’s audit
Dthe potential use of internal audit
16
Which of the following should NOT be considered at the planning stage?
AThe timing of the audit
BAnalytical review
CLast year’s written representation letter
DObtaining written representations
17
Audit risk is composed of 3 factors. Which of the following is NOT one of those factors?
ACompliance risk
BDetection risk
CControl risk
DInherent risk
18
Which one of the following is NOT considered to be part of planning?
ABackground i.e. industry
BPrevious year’s audit i.e. any qualifications in the report
CConsidering the work to be done by the client staff e.g. internal audit
DConsidering whether the financial statements show a true and fair view
19
Which of the following is correct in relation to materiality?
AA matter is material only if it changes the audit report
BA matter is material if the auditor and the directors both decide that further work needs to be done in the area under question
CA matter is material only if it affects directors’ emoluments
DA matter is material if its omission or misstatement would reasonably influence the decisions of an addressee of the auditors’ report
20
How long is the auditor’s term of office?
AUntil the audit is complete
BUntil the financial statements are complete
CUntil the next AGM (Annual General Meeting)
DUntil the directors remove them