This quiz works best with JavaScript enabled. Home > Accounting > Auditing > Auditing – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Auditing Quiz 15 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the principal objective of an independent auditor to obtain an understanding of internal control and assess control risk in an audit of financial statements? A) To comply with generally accepted accounting principles. B) To obtain a measure of confidence in management efficiency. C) To maintain independence in mental attitude during the audit. D) To determine the nature, timing and extent of subsequent audit work. Show Answer Correct Answer: D) To determine the nature, timing and extent of subsequent audit work. 2. Management statements contained in the components of financial statements are called..... A) Audit evidence. B) Management assertion. C) Confirm. D) Oral evidence. Show Answer Correct Answer: B) Management assertion. 3. Which of the following is NOT the categories of attestation service of a CA firm? A) Audit of internal control over financial reporting. B) Review of historical financial statement. C) Management consulting services. D) Services provided regarding information technology. Show Answer Correct Answer: C) Management consulting services. 4. Which of the followings are not the disqualified of auditor? A) Employee of an officer of audit firm. B) Employee of an officer's firm. C) Employee of an employee of an officer's firm. D) A shareholder of the client's firm. Show Answer Correct Answer: A) Employee of an officer of audit firm. 5. IAPI The organization that oversees Indonesian public accountants. A) CORRECT. B) SALAH. Show Answer Correct Answer: A) CORRECT. 6. Generally, the following parties are addressed to the independent auditor's report, namely..... A) Company, company directors, customers. B) Board of directors, board of commissioners, creditors. C) Board of commissioners, shareholders, board of directors. D) Company, shareholders, employees. Show Answer Correct Answer: C) Board of commissioners, shareholders, board of directors. 7. Which are the steps involved in Internal check with regard to purchases? A) Requisition & Enquiry. B) Purchase & Receipt of Goods. C) Making the payments. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. Confirmation that requires an answer whether the confirmed receivable balance is correct or not is called..... A) Negative confirmation. B) Positive confirmation. C) Relevant confirmation. D) Non-relevant confirmation. Show Answer Correct Answer: B) Positive confirmation. 9. Audit of banks is an example of ..... A) Statutory audit. B) Balance sheet audit. C) He hears the concurrence. D) All of the above. Show Answer Correct Answer: D) All of the above. 10. Audit is compulsory for A) Partnership firms. B) Co-operative Societies. C) Joint Stock Companies. D) Sole trader. Show Answer Correct Answer: C) Joint Stock Companies. 11. The approach of management auditor should be ..... A) Brief. B) Analytical. C) Summary. D) Internal. Show Answer Correct Answer: B) Analytical. 12. Regarding audit results reports, the Indonesian Government Internal Audit Standards (SAIPI) are regulated in..... A) Implementation Standards. B) Reporting Standards. C) Communication Standards. D) Results Standards. Show Answer Correct Answer: C) Communication Standards. 13. The party who receives the report from the operational audit is A) Third parties (investors and creditors). B) Management of a corporate entity. C) Government. D) Management of the entity concerned. Show Answer Correct Answer: D) Management of the entity concerned. 14. Among the audit procedures that can be used to test the quality of building and construction work are..... A) Prosedur analitis. B) Investigation. C) Physical examination. D) Inspection. Show Answer Correct Answer: C) Physical examination. 15. Statistical sampling methods that are often used by auditors are as follows, except..... A) Fixed Sample Size. B) Informal. C) Sequential. D) Discovery. Show Answer Correct Answer: B) Informal. 16. Auditing standards are different from auditing procedures, and auditing procedures relate to: A) Performance measurement. B) Audit principles. C) Actions to be taken. D) Audit considerations. Show Answer Correct Answer: C) Actions to be taken. 17. The specific objectives of internal auditing include: A) Assisting Board of Management(BOM) and Executives in performing supervisory function for the process of information report. B) Evaluating the effectiveness of risk management and internal control systems, proposing recommendation with BOM and Executives toimprove entity's operations. C) Assessing compliance with related laws and regulations to protect theexistence and reputation of the entity. D) Helping to lift the entity's position by improving risk management andinternal control systems in enterprise. E) All of the above answers. Show Answer Correct Answer: E) All of the above answers. 18. Which one of the following statements regarding the internal check system is correct? A) Have an accurate record of all the business transactions. B) Known the accounting method followed in the business. C) Plan for future audit works. D) Ascertain the profit earning capacity of the business. Show Answer Correct Answer: B) Known the accounting method followed in the business. 19. The following are limitations inherent in every internal control, except..... A) Error in judgment. B) Collusion. C) Neglect by management. D) Board of commissioners and audit committee. Show Answer Correct Answer: D) Board of commissioners and audit committee. 20. Which of the following sections deal with qualifications of the auditor? A) Section 141(1). B) Section 104 (1) and section 224 (2). C) Section 226 (3) and section 226(4). D) Section 224(3) & Sec.224. Show Answer Correct Answer: A) Section 141(1). ← 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