Auditing MCQs

Page No. 10

Internal check is carried on by___________?


aStaff specially appointed for the purpose

✖


b Internal auditor

✖


cSupervisor of the staff

✖


d Members of the staff

✓



Institute of Chartered Accountants of Pakistan was established in____________?


a1949

✖


b1956

✖


c1961

✓


d1972

✖


View Answer 1961

Audit in depth is synonymous for____________?


aComplete audit

✖


bCompleted audit

✖


cFinal audit

✖


dDetailed audit

✓


View Answer Detailed audit

Concurrent audit is a part of____________?


aInternal check system

✖


bContinuous audit

✖


cInternal audit system

✓


dNone of these

✖


View Answer Internal audit system

The scope of internal audit is decided by the___________?


aShareholders

✖


bManagement

✓


cGovernment

✖


dLaw

✖


View Answer Management

Internal audit is undertaken:


aBy independent auditor

✖


bStatutorily appointed auditor

✖


cBy a person appointed by the management

✓


dBy a government auditor

✖



Which of the following statements is not true?


aManagement fraud is more difficult to detect than employee fraud

✖


bInternal control system reduces the possibility of occurrence of employee fraud and management fraud

✓


cThe auditor’s responsibility for detection and prevention of errors and frauds is similar.

✖


d All statements are correct.

✖



Goods sent on approval basis’ have been recorded as ‘Credit sales’. This is an example of____________?


aError of principle

✓


bError of commission

✖


cError of omission

✖


dError of duplication

✖


View Answer Error of principle

Lapping is also known as___________?


aTeeming and lading

✓


bLooping

✖


cEmbezzlement

✖


dHacking

✖


View Answer Teeming and lading

According to ISA 315, which of the following is NOT a control activity?


a Performance reviews

✖


bPhysical controls

✖


cOrganizational structure

✓


dSegregation of duties

✖



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