This quiz works best with JavaScript enabled. Home > Accounting > Auditing > Auditing – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Auditing Quiz 13 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An auditor in a casual vacancy is appointed by the ..... A) Board of Directors. B) Shareholders. C) Central Government. D) Company Law board. Show Answer Correct Answer: A) Board of Directors. 2. The main functions of auditors are: A) Audit function. B) Attestation function. C) All True. D) None of above. Show Answer Correct Answer: C) All True. 3. Primary object of auditing is to A) Detect fraud. B) Detect error. C) Prevent fraud and error. D) Verify accounts and statements. Show Answer Correct Answer: D) Verify accounts and statements. 4. In observing the physical inventory count, the auditor performs..... A) Test terhadap inventory pricing dan inventory count. B) Physical inventory count together with clients. C) Testing the results of physical calculations carried out by clients. D) Calculation of client inventories, both those stored in warehouses and those in external warehouses. Show Answer Correct Answer: B) Physical inventory count together with clients. 5. When issuing an audit report, the auditor must believe that his opinion is correct, so to support this belief, it must be equipped with..... A) Audit opinion. B) Audit evidence. C) Program audit. D) Accuracy of audit reports. Show Answer Correct Answer: B) Audit evidence. 6. The report through which an auditor expresses his opinion on financial statements is known as A) Cash report. B) Statutory report. C) Management report. D) Audit report. Show Answer Correct Answer: D) Audit report. 7. The following are not part of an audit of the balance sheet, namely: A) Cash audit, investment of financial assets. B) Audit of receivables, fixed assets. C) Audit of fund liabilities and Equity. D) Income and expenditure audit. Show Answer Correct Answer: D) Income and expenditure audit. 8. Which of the following internal audit assignments is described below?The examination of the economy, efficiency, and effectiveness of activities and processes A) Financial audit. B) Value for money audit. C) Regulatory compliance audit. D) IT audit. Show Answer Correct Answer: B) Value for money audit. 9. The Word audit is derived from the Latin word 'audire' which means A) Active. B) Listen. C) Think. D) Search. Show Answer Correct Answer: B) Listen. 10. Before the work of audit is commenced, the auditor plans out the whole audit work is called A) Audit plan. B) Audit notebook. C) Audit working papers. D) Audit programme. Show Answer Correct Answer: D) Audit programme. 11. Written records relating to audit evidence or information obtained during the audit as well as the methods, procedures applied, tests carried out and conclusions made by the auditor, are called..... A) Audit Evidence. B) Audit Working Papers. C) Prosedur Audit. D) Audit Plan. Show Answer Correct Answer: B) Audit Working Papers. 12. The time required and costs involved in an external audit are much higher as compared to internal audits A) True. B) False. Show Answer Correct Answer: A) True. 13. The following are reasons for auditors to use the pick test method, except..... A) Limited examination time. B) Unlimited inspection fees. C) Inspection scope. D) Number of team members. Show Answer Correct Answer: B) Unlimited inspection fees. 14. The notes kept by the auditor regarding audit procedures constitute the meaning of..... A) Audit working papers. B) Inspection papers. C) Audit paperwork. D) All true. Show Answer Correct Answer: D) All true. 15. Which one of the following is true of the position of an auditor regarding the system of internal check in the organisation? A) He should account himself with the system of internal check. B) He should monitor and supervise the system of internal check. C) He himself should lay down the system of internal check. D) He has nothing to do with the system of internal check. Show Answer Correct Answer: B) He should monitor and supervise the system of internal check. 16. ..... is a person whose job it is to make sure that information reported on financial statements is true and accurate and that the financial statements are prepared according to GAAP principles. A) Accountant. B) Auditor. C) Watchdog. D) Financier. Show Answer Correct Answer: B) Auditor. 17. To test client compliance with designed internal controls, auditors carry out the following two types of tests, namely..... A) Tests of controls and substantive tests. B) Analytical testing and tests of controls. C) Substantive testing and analytical testing. D) Testing the existence and testing of the level of compliance with internal control. Show Answer Correct Answer: C) Substantive testing and analytical testing. 18. One of the control test procedures below will test the existence of cash disbursements, except..... A) Review cash diary. B) Trace canceled checks to the purchases in question. C) Testing supporting documents as part of purchase testing. D) Conduct conversations with employees and observe activities in the payment process. Show Answer Correct Answer: D) Conduct conversations with employees and observe activities in the payment process. 19. The amount of value that if omitted or misstated accounting information could result in changes or influence the judgment of people who place reliance on the information, is called..... A) Wrong presentation. B) Audit Working Papers. C) Audit Report. D) Materiality. Show Answer Correct Answer: D) Materiality. 20. What is meant by a Financial Statement audit is: A) The results of the examination are related to the company's internal control. B) This financial audit is concerned with collecting and evaluating transaction evidence regarding an entity's reports. C) Audit which aims to find out whether the company has complied with existing regulations and policies. D) Audits of the behavior of accountants and financial managers. Show Answer Correct Answer: B) This financial audit is concerned with collecting and evaluating transaction evidence regarding an entity's reports. ← 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