🔍Auditing MCQs
Auditing MCQs
122 MCQs71
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
72
_______the audit risk,_______the materiality and _______the audit effort?
ALower, Higher, Lower
BLower, Lower, Higher
CHigher, Lower, Lower
DLower, Higher, Higher
73
Which of the following statements is not correct about materiality?
AMateriality is a relative concept
BMateriality judgments involve both quantitative and qualitative judgments
CAuditor’s consideration of materiality is influenced by the auditor’s perception of the needs of an informed decision maker who will rely on the financial statements
DAt the planning state, the auditor considers materiality at the financial statement level only
74
Balance sheet does not include:_____________?
AVerification of assets and liabilities
BVouching of income and expense accounts related to assets and liabilities
CExamination of adjusting and closing entries
DRoutine checks
75
Which of the following statements is not true about continuous audit?
AIt is conducted at regular interval
BIt may be carried out on daily basis
CIt is needed when the organization has a good internal control system
DIt is expensive
76
Balance sheet audit includes verification of____________?
AAssets
BLiabilities
CIncome and expense accounts where appropriate
DAll of the above
77
Audit in depth is synonymous for_____________?
AComplete audit
BCompleted audit
CFinal audit
DDetailed audit
78
In Pakistan, balance sheet audit is synonymous to___________?
AAnnual audit
BContinuous audit
CDetailed audit
DStatutory audit
79
Audit of banks is an example of__________?
Aand (
BE. All of the above
CConcurrent audit
DBoth (
80
What is the primary objective of analytical procedures used in the overall review stage of an audit?
ATo help to corroborate the conclusions drawn from individual components of financial statements
BTo reduce specific detection risk
CTo direct attention to potential risk areas
DTo satisfy doubts when questions arise about a client’s ability to continue