Auditing MCQs

Page No. 6

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



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



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



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



What are analytical procedures?


aSubstantive tests designed to assess control risk


b Substantive 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



The basic assumption underlying the use of analytical procedures is:____________?


a It 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


d None of the above.



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



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


View Answer All of the above

In determining the level of materiality for an audit, what should not be considered?


aPrior year’s errors


bThe auditor’s remuneration


cAdjusted interim financial statements


dPrior year’s financial statements



When issuing unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the_____________?


a Amount 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



Goto Page No.

Page 6 of 14

Alphabetical MCQs Categories

Here below You find all kind of categories of MCQs in alphabetical order.


"Comprehensive Collection of MCQs: Alphabetically Organized by Subject"

"Discover an extensive collection of multiple-choice questions (MCQs) neatly categorized by subject from A to Z. This resource is designed for anyone eager to explore various topics in a straightforward and organized manner. Whether you're a student preparing for exams, an educator seeking supplementary materials, or simply curious about different subjects, this compilation offers a convenient way to learn and assess your knowledge. With questions arranged alphabetically, navigation is effortless, allowing you to delve into subjects of interest at your own pace. Engage, learn, and expand your understanding with this accessible and comprehensive repository of MCQs!"


BolPakistan

bolpakistan.com.pk includes Job Mcqs and Pak Mcqs is the Top Largest Mcqs Forum in World, in which you can read Mcqs of All Subjects, PPSC test preparation, FPSC, NTS and PPSC PAST PAPERS, PPSC PAST MCQS. A Collection of Repeated MCQs for JOBs seekers.

Copyright © 2024, Designed & Developed by BolPakistan