This quiz works best with JavaScript enabled. Home > Accounting > Auditing > Auditing – Quiz 18 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Auditing Quiz 18 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Surprise checks are part of an A) Auditor's working papers. B) Audit Programme. C) Auditor's Report. D) Accounting Standard. Show Answer Correct Answer: B) Audit Programme. 2. When an auditor detects material weaknesses in the internal checks and control system of the company under audit, it should report his findings as per A) ICAI orders. B) SEBI orders. C) MAOCARO orders. D) ICWAI orders. Show Answer Correct Answer: A) ICAI orders. 3. The following are examples of audit documentation, except..... A) Program audit. B) Analysis. C) Permanent archive. D) Test list. Show Answer Correct Answer: C) Permanent archive. 4. When auditing an investment in another company, an auditor most likely would seek to conduct which audit procedure to help satisfy the valuation assertion? A) Inspect the stock certificates evidencing the investment. B) Examine the audited financial statements of the investee company. C) Review the broker's advice or canceled check for the investment's acquisition. D) Obtain market quotations from The Wall Street Journal or another independent source. Show Answer Correct Answer: D) Obtain market quotations from The Wall Street Journal or another independent source. 5. The following are the benefits and functions of making an LHP, except..... A) Media for communicating examination results to related parties. B) As a material for improvement for the entity being examined. C) As a basis for follow-up monitoring that must be carried out by the auditee. D) As material for authorities and NGOs to participate in evaluating the results of the examination. Show Answer Correct Answer: D) As material for authorities and NGOs to participate in evaluating the results of the examination. 6. It is not the auditor's responsibility to ensure that the entity complies with relevant laws and regulations. A) True. B) False. Show Answer Correct Answer: A) True. 7. Assertions about rights and obligations relate to..... A) Whether the entity's assets or liabilities existed at a particular date and whether the recorded transactions have occurred during a particular period. B) Whether all transactions and accounts that should be presented in the financial statements have been included in them. C) Whether assets are the entity's rights and debts are the company's obligations at a certain date. D) Whether the components of assets, liabilities, income and costs have been included in the financial statements at the proper amounts. Show Answer Correct Answer: C) Whether assets are the entity's rights and debts are the company's obligations at a certain date. 8. The first auditor of a company will hold office A) For a period of one year. B) Till holding of statutory meeting. C) Till the conclusion of first annual general meeting. D) Till a new auditor is appointed. Show Answer Correct Answer: C) Till the conclusion of first annual general meeting. 9. The audit conducted to check and examine the efficiency and effectiveness management is called ..... A) Energy audit. B) Safety audit. C) Management audit. D) Company audit. Show Answer Correct Answer: C) Management audit. 10. Auditing is derived from the Latin word A) Audire. B) Auditor. C) Audre. D) Order. Show Answer Correct Answer: A) Audire. 11. Without the client's permission, a CPA may not disclose confidential client information contained in the auditor's working papers to: A) Voluntary quality control review board. B) A CPA firm that has purchased the accounting practice of another CPA firm. C) A federal court that has issued a valid subpoena. D) Disciplinary enforcement bodies established in accordance with State law. Show Answer Correct Answer: C) A federal court that has issued a valid subpoena. 12. What are the audit periods? A) November-April and May-October. B) January-May and June-October. C) October-February and March-July. D) November-October. Show Answer Correct Answer: A) November-April and May-October. 13. Analytical procedures used in planning an audit should focus on identifying ..... A) The various assertions that are embodied in the financial statement. B) Material weaknesses in internal control. C) The predictability of financial data from individual transaction. D) Areas that may represent specific risks relevant to the audit. Show Answer Correct Answer: D) Areas that may represent specific risks relevant to the audit. 14. What is auditing A) A critical examination of books of records. B) A formality check. C) Regular activity. D) None of these. Show Answer Correct Answer: A) A critical examination of books of records. 15. WHICH ONE IS NOT AN DUTY OF AN AUDITOR A) Duty to report to company's banker. B) Duty to report to members. C) Duty to sign the audit report. D) Duty to report on violation of law. Show Answer Correct Answer: A) Duty to report to company's banker. 16. Primary objective of audit is A) Detection of errors. B) Detection of frauds. C) Verification of assets. D) None of the above. Show Answer Correct Answer: D) None of the above. 17. Internal check is done by the A) Internal auditor. B) External auditor. C) Employees. D) None of these. Show Answer Correct Answer: C) Employees. 18. SQCS (Statements on Quality Control Standards) were issued by who? A) ASB. B) BSA. C) OED. D) DOD. E) EDD. Show Answer Correct Answer: A) ASB. 19. An auditor is a watch dog not a blood hound.this statement has been given in decesion of. A) Garner vs Murray case. B) Kingston cotton mill case. C) Pardger cotton mill case. D) None of the above. Show Answer Correct Answer: B) Kingston cotton mill case. 20. WHICH OF THE FOLLOWING IS NOT ELIGIBLE FOR APPOINTMENT AS AN AUDITOR OF A COMPANY A) A person who is CA. B) A person who is employee of company and a CA. C) A firm of CA. D) A LLP having CA as partners. Show Answer Correct Answer: B) A person who is employee of company and a CA. ← 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