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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