🔍Auditing MCQs
Auditing MCQs
122 MCQs81
When applying analytical procedures, an auditor could develop independent estimate of an account balance to compare it to___________?
Aclient’s unedited account balance
Bclient’s unedited account balance adjusted for trends in the industry
CPrior year audited balance
DPrior year audited balance adjusted for trends in the industry
82
Which of the following is not an analytical procedure?
ATracing of purchases recurred in the purchase book to purchase invoices.
BComparing aggregate wages paid to number of employees
CComparing the actual costs with standard costs
DAll of them are analytical procedure
83
What are analytical procedures?
ASubstantive tests designed to assess control risk
BSubstantive tests designed to evaluate the validity of management’s representation letter
CSubstantive tests designed to study relationships between financial and nonfinancial
DAll of the above
84
The basic assumption underlying the use of analytical procedures is:____________?
AIt helps the auditor to study relationship among elements of financial information
BRelationship among data exist and continue in the absence of known condition to the contrary
CAnalytical procedures will not be able to detect unusual relationships
DNone of the above.
85
Which of the following statements is most closely associated with analytical procedure applied at substantive stage?
AIt helps to study relationship among balance sheet accounts
BIt helps to discover material misstatements in the financial statements
CIt helps to identify possible oversights
DIt helps to accumulate evidence supporting the validity of a specific account balance
86
Analytical procedures issued in the planning stage of an audit, generally?
Ahelps to determine the nature, timing and extent of other audit procedures
Bdirects attention to potential risk areas
Cindicates important aspects of business
DAll of the above
87
The date on auditor’s report should not be____________?
Aand
Blater than the date on which the accounts are approved in board’s meeting
Cearlier than the date on which the accounts are approved by the management
DBoth
88
Auditor of a___________company does not have right to visit foreign branches of the company?
AUnlimited liability
BManufacturing
CBanking
DNonprofit making
89
The branch auditor is appointed by___________?
AShareholders in an annual general meeting
BShareholders in general meeting
CBoard of directors in board meeting
DAny of the above
90
The auditor has a right to___________?
AObtain information and explanation
Band
CObtain information and explanation necessary for the purpose of audit
DBoth