This quiz works best with JavaScript enabled. Home > Accounting > Auditing > Auditing – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Auditing Quiz 12 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The types of internal audit assignments consist of two classifications, namely; A) Assurance & Consulting. B) Audit & Assistance. C) Regular & Comprehensive. D) Interim & Post. Show Answer Correct Answer: A) Assurance & Consulting. 2. In accordance with professional ethical standards, an auditor is said to be independent in which respect? A) The auditor's checking account, which is fully insured by the federal government, is held within the client's financial institution. B) Auditors also act as legal advisors who provide general advice to clients. C) An auditor employee becomes a volunteer treasurer for a charitable organization that is a client. D) The client has not paid remuneration to the auditor or in other words owes remuneration to the auditor for two consecutive audit years. Show Answer Correct Answer: B) Auditors also act as legal advisors who provide general advice to clients. 3. The risk of detection is..... A) The susceptibility of an account balance or class of transactions to a material misstatement, assuming that there are no related internal control policies and procedures. B) The risk of material misstatement in an assertion that cannot be prevented or detected in a timely manner by the entity's internal control. C) Risk resulting from the auditor not being able to detect material misstatements contained in an assertion. D) The risk that occurs if the auditor, without realizing it, does not modify his opinion as appropriate, on a financial report that contains a material misstatement. Show Answer Correct Answer: C) Risk resulting from the auditor not being able to detect material misstatements contained in an assertion. 4. Find a synonym to the word "disruptive": A) Troublemaking. B) Vital. C) Enable. D) Subjective. Show Answer Correct Answer: A) Troublemaking. 5. Testimonial evidence is evidence that can be obtained from statements which are usually answers to questions, and are rational. This evidence can also be obtained from statements which are usually answers to questions A) CORRECT. B) SALAH. Show Answer Correct Answer: A) CORRECT. 6. How should the office establish a policy on ethics? A) Require auditors to confirm their independence in an annual letter. B) There is a random inspection of compliance with the office's policy regarding ethics. C) There is communication about ethics through training and seminars. D) All correct. Show Answer Correct Answer: D) All correct. 7. Management audit is done by A) Charted accountant. B) Managers. C) Any qualified person. D) Company secretary. Show Answer Correct Answer: C) Any qualified person. 8. The sole responsibility of management with regard to financial reporting involves preparing and presenting financial statements in accordance with the applicable financial reporting framework. A) True. B) False. Show Answer Correct Answer: A) True. 9. Taking action on lessons learned from accidents and incidents occurs on which pdca cycle A) Check. B) Do. C) Act. D) Plan. Show Answer Correct Answer: C) Act. 10. The following are types of audits, except A) Financial Report Audit. B) Compliance Audit. C) Assertion Audit. D) Management Audit. Show Answer Correct Answer: C) Assertion Audit. 11. This is a kind of audit which is conducted in between two annual audit A) Internal audit. B) Interim audit. C) Final audit. D) Continuous audit. Show Answer Correct Answer: B) Interim audit. 12. Which indicates an inherent limitation of a financial statement audit? A) Management is responsible for financial reports. B) Auditors are expected to discover material fraud in every audit. C) Auditors are expected to be independent of clients. D) Auditors are expected to be able to evaluate appropriate accounting estimates. Show Answer Correct Answer: C) Auditors are expected to be independent of clients. 13. Auditors can at least use an understanding of the business and industry to..... A) Evaluate a company's capacity to generate revenue. B) Determine the nature of capital production that may emerge. C) Make decisions about the extent of audit procedures. D) Focuses attention on the market for the entity's products or services. Show Answer Correct Answer: C) Make decisions about the extent of audit procedures. 14. It is important to carry out an audit because..... A) There is the potential for errors or irregularities in the audit object. B) There must be fraud in the audit object. C) An error occurred in preparing the financial report. D) There is a material misstatement in the financial statements. Show Answer Correct Answer: A) There is the potential for errors or irregularities in the audit object. 15. The level of assurance provided by an external audit is absolute.Is this statement true or false? A) True. B) False. Show Answer Correct Answer: B) False. 16. All long-term debt that should have been recorded has been recorded. This is an application of the assertion..... A) Classification. B) Completeness (completeness). C) Hak dan kewajiban (rights and obligations ). D) Accuracy, valuation, and allocation (accuracy, valuation, and allocation). Show Answer Correct Answer: B) Completeness (completeness). 17. A lower level audit that does not require a lot of evidence which is usually carried out in non-public companies and takes the form of a limited review is known as..... A) Review. B) Audit. C) Other attestation services. D) Accounting and Bookkeeping Services. Show Answer Correct Answer: A) Review. 18. Recording a transaction twice in the books of original entry is an error of ..... A) Principle. B) Commission. C) Duplication. D) None of above. Show Answer Correct Answer: C) Duplication. 19. The majority of the members of audit committee should be executive directors of the company or related company. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 20. Under section 146 of the companies act 2013, an auditor has a right to attend any general meeting A) By himself or authorized representative who is not qualified. B) By himself only. C) Auditor has no duty to attend any general meeting. D) By himself or authorized representative who is qualified. Show Answer Correct Answer: D) By himself or authorized representative who is qualified. ← PreviousNext →Related QuizzesAccounting QuizzesAuditing Quiz 1Auditing Quiz 2Auditing Quiz 3Auditing Quiz 4Auditing Quiz 5Auditing Quiz 6Auditing Quiz 7Auditing Quiz 8Auditing Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books