This quiz works best with JavaScript enabled. Home > Accounting > Auditing > Auditing – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Auditing Quiz 17 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Of the following descriptions, which one provides the best description of the core values of the CPA profession as assessed by the public who use CPA services? A) Continuous education and lifelong learning, communication skills, client and market focused. B) Competence, integrity, objectivity. C) Aligned with broad issues of the business world, focused on clients and markets, integrity. D) Technology-savvy, client and market focused, communication skills. Show Answer Correct Answer: A) Continuous education and lifelong learning, communication skills, client and market focused. 2. Auditing is a process in which independent andcompetent auditors collect and evaluate of evidenceabout audited information to determine and report onthe degree of correspondence between the informationand established criteria. A) True. B) False. Show Answer Correct Answer: A) True. 3. Which is a reasonable assurance service? A) Annual financial statement audit work. B) Review of interim financial statements. C) Financial data collection work. D) Inspection according to mutually agreed methods. Show Answer Correct Answer: A) Annual financial statement audit work. 4. The following are important decisions regarding audit evidence, except..... A) The nature of the tests that must be performed. B) The extent of testing that must be carried out. C) The appointment of staff to carry out the audit. D) Where the required audit evidence can be obtained. Show Answer Correct Answer: D) Where the required audit evidence can be obtained. 5. Audit programme is prepared by A) Auditor. B) Client. C) Audit assistants. D) Auditor and audit assistants. Show Answer Correct Answer: D) Auditor and audit assistants. 6. Which of these two functions is not a good combination from an internal control perspective? A) Storage function and execution function. B) Accounting function and implementation function. C) Purchase function and warehouse function. D) Sales function and receivables collection function. Show Answer Correct Answer: C) Purchase function and warehouse function. 7. Effective control over the purchase of raw materials includes all of the following procedures, except..... A) Systematic reporting of product changes that will affect raw materials. B) Obtain a third party written report regarding quality and quantity before payment is made. C) Must obtain financial approval before making a commitment. D) Determine raw material requirements before issuing purchase orders. Show Answer Correct Answer: C) Must obtain financial approval before making a commitment. 8. 'Special notice of ordinary resolution has been given and on receipt of special notice, the company must send a copy to the auditor concerned and CCM.' This is describing the procedure for A) Auditor appointment. B) Auditor dismissal. C) Auditor resignation. D) Auditor responsibility. Show Answer Correct Answer: B) Auditor dismissal. 9. The following are the types of non-assurance services provided by public accounting firms, except tax services A) CORRECT. B) SALAH. Show Answer Correct Answer: B) SALAH. 10. Auditing refers toc) Examination of books of accounts of professional ac A) A) Preparation and checking of accounts. B) B) Examination of books of accounts only. C) C) Checking of vouchers. D) Examination of books of accounts of professional accountants. Show Answer Correct Answer: D) Examination of books of accounts of professional accountants. 11. Which is not an auditing office in Big4? A) Pwc. B) Deloitte. C) KPMG. D) Ex. Show Answer Correct Answer: D) Ex. 12. Audit working papers are used to summarize the information recorded in supporting schedules for various related accounts, namely..... A) Journal Summary. B) Main schedule. C) Program audit. D) Summary of audit papers. Show Answer Correct Answer: B) Main schedule. 13. Balance sheet audit includes verification of A) Assets. B) Liabilities. C) Income and expense accounts where appropriate. D) All of the above. Show Answer Correct Answer: D) All of the above. 14. The audit office Examine the same customers for a period of 20 years. What obstacles might arise? A) Self-interest. B) Review your own work. C) Intimately familiar. D) Transparency. Show Answer Correct Answer: C) Intimately familiar. 15. Auditing means A) Detection and prevention of frauds. B) Detection and prevention of errors. C) Detection and prevention of errors and frauds. D) Controlling of accounts. Show Answer Correct Answer: C) Detection and prevention of errors and frauds. 16. ..... is essentially an environmental management tool for measuring the effects of certain activities on the environment against set criteria or standards. A) Environmental Auditing. B) Management Auditing. C) Safety Auditing. D) None of above. Show Answer Correct Answer: A) Environmental Auditing. 17. When computer programme or files can be accessed from terminals, access can be limited to authorized individuals by A) Appointing a librarian. B) Controlling passwords. C) Appointing EDP auditor. D) Both (a) and (b). Show Answer Correct Answer: B) Controlling passwords. 18. The following are the AICPA Due Care ethical principles..... A) In carrying out their responsibilities professionally, members must exercise sensitive professional and moral judgments in every activity. B) Members must accept the obligation to serve the public interest, respect the public trust, and demonstrate a commitment to professionalism. C) To maintain and expand public trust, each member must demonstrate professional responsibility with high integrity. D) Members must observe professional technical and ethical standards, work hard continuously to improve competence and service quality, and demonstrate responsibility to the best of the member's abilities. Show Answer Correct Answer: D) Members must observe professional technical and ethical standards, work hard continuously to improve competence and service quality, and demonstrate responsibility to the best of the member's abilities. 19. Auditing is A) An art form of recording, classifying, summarizing accurately and expressing in currency units, transactions and events within a company of a financial nature with respect to the interpretation of their results. B) A systematic process for objectively obtaining and evaluating evidence regarding statements about economic events and actions to determine the degree of conformity between such statements and established criteria and to communicate the results to interested users.". C) A process of identifying, measuring and reporting economic information to enable clear and firm assessment and decision making for users of that information. D) All true. Show Answer Correct Answer: B) A systematic process for objectively obtaining and evaluating evidence regarding statements about economic events and actions to determine the degree of conformity between such statements and established criteria and to communicate the results to interested users.". 20. Internal Audit is carried out by? A) The Institute of Internal Auditors. B) National Audit Department. C) Internal Audit Unit. D) National Audit Department and Internal Audit Unit. Show Answer Correct Answer: C) Internal Audit Unit. ← 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