🔍Auditing MCQs
Auditing MCQs
122 MCQs41
Verification refers to_________?
AExamining the physical existence and valuation of assets.
BExamining the journal and ledger
CExamination of vouchers related to assets.
DNone of the above.
42
When issuing unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the___________?
AAmount of known misstatement is documented in working papers
BEstimates of the total likely misstatement is less than materiality level
CEstimate of the total likely misstatement is more than materially level
DEstimates of the total likely misstatement cannot be made
43
______the audit risks_______the materiality and_________the audit effort.
ALower, Higher, Lower
BLower, Lower, Higher
CHigher, Lower, Lower
DLower, Higher, Higher
44
Test Checking refers to___________?
ATesting of accounts and records
BChecking of selected number of transactions
CExamination of adjusting and closing entries
DChecking of all transactions recorded
45
Window dressing implies_______________?
ACurtailment of expenses
BChecking of Wastages
CUnder valuation of assets
DOver Valuation of assets
46
When is evidential matter, generally, considered sufficient?
AWhen it constitutes entire population
BWhen it is enough to provide a basis for giving reasonable assurance regarding truthfulness
CWhen it is objective and relevant
DWhen auditor collects and evaluates it independently
47
Which of the following factors is most important in determining the appropriations of audit evidence?
AThe reliability of audit evidence and its relevance in meeting the audit objective
BThe objectivity and integrity of the auditor
CThe quantity of audit evidence
DThe independence of the source of evidence
48
The nature, timing and extent of substantive procedures is related to assessed level of control risk
ARandomly
BDisproportionately
CDirectly
DInversely
49
In an audit of financial statements, substantive tests are audit procedures that __________?
AMay be eliminated for an account balance under certain conditions
BAre designed to discover significant subsequent events
CWill increase proportionately when the auditor decreases the assessed level of control risk
DMay be test of transactions, test of balance and analytical procedures
50
Which of the following statements is, generally, correct about the reliability of audit evidence?
ATo be reliable, evidence should conclusive rather than persuasive
BEffective internal control system provides reliable audit evidence
CEvidence obtained from outside sources routed through the client
DAll are correct.