🔍Auditing MCQs
Auditing MCQs
122 MCQs51
Of the following, which is the least persuasive type of audit evidence?
ABank statements obtained from the client
BDocuments obtained by auditor from third parties directly.
CCarbon copies of sales invoices inspected by the auditor
DComputations made by the auditor
52
Goods sold on the basis of ‘sales or return ‘ should:
ABe included in the stock
BNot be included in the stock
CNot be checked by auditor
DNone of the above
53
Floating assets are valued at____________?
Acost
BMarket price
CCost or market price whichever is lower
DCost less depreciation
54
Stock should be valued at_________?
ACost
BMarket price
CCost or Market price whichever is lower.
DCost less depreciation.
55
Which of the following is not an advantage of the preparation of working paper?
ATo provide a basis for review of audit work
BTo provide a basis for subsequent audits
CTo ensure audit work is being carried out as per programme
DTo provide a guide for advising another client on similar issues
56
Which of the following best describes the primary purpose of audit programme preparation?
ATo detect errors or fraud
BTo comply with GAAP appropriate evidence
CTo gather sufficient
DTo assess audit risk
57
The quantity of audit working papers complied on engagement would most be affected by__________?
AManagement’s integrity
BAuditor’s experience and professional judgment
CAuditor’s qualification
DControl risk
58
The working papers which auditor prepares for financial statements audit are___________?
AEvidence for audit conclusions
BOwned by the client
COwned by the auditor
DRetained in auditor’s office until a change in auditors
59
Audit programme is prepared by____________?
AThe auditor
BThe client
CThe audit assistants
DThe auditor and his audit assistants
60
What would most effectively describe the risk of incorrect acceptance in terms of substantive audit testing?
AThe auditor has ascertained that the balance is materially correct when in actual fact it is not
BThe auditor concludes the balance is materially misstated when in actual fact is not
CThe auditor has rejected an item from sample which was not supported by documentary evidence
DHe applies random sampling on data which is inaccurate and inconsistent