🔍Auditing MCQs
Auditing MCQs
122 MCQs21
The independent auditor’s primary responsibility is to______________?
Athe directors
Bthe company’s creditors (payables)
Cthe company’s bank
Dthe shareholders
22
Assuming that it is not the first appointment of the auditor, who is responsible for the appointment of the auditor?
AThe shareholders in a general meeting
BThe managing director
CThe board of directors in a board meeting
DThe audit committee
23
Which one of the following is NOT a duty of the auditor?
ADuty to report to the company’s bankers
BDuty to report to the members
CDuty to sign the audit report
DDuty to report on any violation of law
24
Lapping is also known as___________?
ATeeming and lading
BLooping
CEmbezzlement
DHacking
25
According to ISA 315, which of the following is NOT a control activity?
APerformance reviews
BPhysical controls
COrganizational structure
DSegregation of duties
26
According to ISA 315, which of the following is NOT an element of the control environment?
AParticipation of management
BInformation processing
CCommitment to competence
DHuman resource policies and practices
27
The degree of effectiveness of an internal control system depends on:
AThe design of the internal control system and the implementation of the controls
BThe design of the internal controls and the implementation of the control system
CThe implementation of the controls and the correctness of the accounting records
DThe design of the internal control system and the correctness of the accounting records
28
Which of the following is normally the most reliable source of audit evidence?
AInternal audit
BSuppliers’ statements
CBoard minutes
DAnalytical review
29
According to ISA 500, the strength of audit evidence is determined by which two qualities?
AAppropriateness & competence
BSufficiency & appropriateness
CReliability & extensiveness
DObjectivity & independence
30
Which of the following are you unlikely to see in the current file of auditors’ working papers?
AMemorandum & articles of association
BAudit planning memorandum
CSummary of unadjusted errors
DDetails of the work done on the inventory count