This quiz works best with JavaScript enabled. Home > Accounting > Auditing > Auditing – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Auditing Quiz 14 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. States that the auditor's responsibility is to express an opinion on the financial statements based on the audit to contrast this with management's responsibility for preparing financial statements is A) Auditor's opinion. B) Auditor's responsibility. C) Auditor's report. D) Auditor's plan. Show Answer Correct Answer: B) Auditor's responsibility. 2. The auditor's opinion that the auditor cannot formulate or does not formulate an opinion regarding the fairness of the financial statements in accordance with generally accepted accounting principles is an opinion..... A) Reasonable without exception. B) Improper opinion. C) The statement does not provide an opinion. D) Reasonable with exceptions. Show Answer Correct Answer: C) The statement does not provide an opinion. 3. The distinction between the role of auditor and accountant can be best describe as A) Accountant provide financial information for decision making while auditor determine whether the information properly reflects the economic events of the accounting period. B) Accountant must have a thorough understanding of the principles and rules to prepare financial statement while auditor rely on the theory of evidence to verify the financial statement. C) Auditor is responsible for detection and prevention of error and frauds while accountant ensure the credibility and quality dimension of financial statement. D) Auditor must possess expertise in the accumulation and interpretation of audit evidence while accountant need to be expert in understanding the principles and rules. Show Answer Correct Answer: A) Accountant provide financial information for decision making while auditor determine whether the information properly reflects the economic events of the accounting period. 4. The word 'audit' is derived from the Latin word ..... A) Adire. B) To hear. C) Also. D) Veins. Show Answer Correct Answer: B) To hear. 5. When the Chartered Accountact Act of India was made A) 1847. B) 1948. C) 1949. D) 1950. Show Answer Correct Answer: C) 1949. 6. Which statement is incorrect? A) Independence consists of freedom of mind and empirical independence. B) Obstacles from self-interest are obstacles that arise from the fact that the auditor is a shareholder of the business being audited. C) Obstacles arising from self-review work are obstacles arising from the audit firm accepting accounting work for the same client business. D) Auditors can reveal client secrets. If it's a general matter. Show Answer Correct Answer: D) Auditors can reveal client secrets. If it's a general matter. 7. The systematic process of obtaining and knowing, obtaining and evaluating evidence related to assertions about economic actions and events objectively to determine the level of compliance between those assertions and established criteria and communicating the results with interested parties is called..... . A) Evaluation. B) Auditing. C) Inspection. D) Planning. Show Answer Correct Answer: B) Auditing. 8. The difference between the nature of accounting and auditing in general is..... A) Accounting is analytical. B) Accounting is evidential. C) Auditing bersifat analitis. D) Auditing is constructive. Show Answer Correct Answer: C) Auditing bersifat analitis. 9. ..... auditors perform accounting, tax and consulting work for corporations, governments and individuals. A) Internal. B) Independent. C) Public. D) External. Show Answer Correct Answer: C) Public. 10. Say true or false; An auditor can be appointed in more than one company. A) True. B) False. Show Answer Correct Answer: A) True. 11. Federal and state government auditors performed different type of operational auditing. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 12. When the auditor is an employee of the organization being audited, the audit is classified as an ..... quality audit A) Internal. B) Compliance. C) External. D) Both A&B. Show Answer Correct Answer: A) Internal. 13. What is the best way to reduce information risk? A) User verifies information by himself/herself. B) User shares information risk with management or supplierof information. C) User uses audited financial FSs provided by independent auditors. D) None of above. Show Answer Correct Answer: C) User uses audited financial FSs provided by independent auditors. 14. Which of the following is part of the Current File? A. Trial Balance B. Bank Reconciliation C. Deed of establishment A) All true. B) A and C are correct. C) A and B are correct. D) All wrong. Show Answer Correct Answer: C) A and B are correct. 15. One of the obligations of public accounting practitioners in the principles of Professional Conduct..... A) Practitioners must explain the limitations of professional services provided to clients, employers or other users of professional services to avoid misinterpretation of statements of opinion related to the professional services provided. B) Each practitioner must implement all procedures deemed necessary to ensure the implementation of the principle of confidentiality by those working under his authority, as well as other parties who provide professional advice and assistance. C) Every practitioner complies with all applicable laws and regulations, and avoids any actions that could discredit the profession. D) Every practitioner is obliged not to allow subjectivity, conflicts of interest, or inappropriate influence on the part of others to influence his professional judgment or business judgment. Show Answer Correct Answer: C) Every practitioner complies with all applicable laws and regulations, and avoids any actions that could discredit the profession. 16. At the planning state, the auditor considered materiality at the financial statement level only A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 17. Based on the form of auditing organization: A) State audit. B) Internal audit. C) External audit. D) All of the above answers. Show Answer Correct Answer: D) All of the above answers. 18. Audit process Which order is correct? 1. reporting 2. client acceptance 3. risk assessment 4. risk response A) 2-3-4-1. B) 3-4-2-1. C) 4-3-2-1. D) 1-2-3-4. Show Answer Correct Answer: A) 2-3-4-1. 19. Can the Treasurer collect and deposit funds of the constituent court? A) Yes. B) No. Show Answer Correct Answer: B) No. 20. Entering capital expenses as revenue expenses in the books of accounts is1. A) Error of principle. B) B) Error of Commission. C) D) Compensating principle. D) Error of Omission. Show Answer Correct Answer: A) Error of principle. ← 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