This quiz works best with JavaScript enabled. Home > Accounting > Auditing > Auditing – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Auditing Quiz 19 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following are the responsibilities of the external auditor in auditing financial statements? A) Maintaining internal controls and preparing financial reports. B) Providing internal assurance on internal control and financial reports. C) Providing internal oversight of the reporting process. D) All of the above. E) None of the above. Show Answer Correct Answer: E) None of the above. 2. The following are methods of rationalizing unethical behavior, except..... A) Everyone does it. B) If it is legal, it is ethical. C) I'm the only one who does it. D) Possible discoveries and their consequences. Show Answer Correct Answer: C) I'm the only one who does it. 3. The Treasurer lives a great distance from the meeting place and cannot attend special events and most meetings due to her job. Can the Recordress keep the Deposit Slip and make the deposit of Court funds? A) Yes. B) No. Show Answer Correct Answer: B) No. 4. An audit which deals with compliance of various provisions of Companies Act is known as A) Balance sheet audit. B) Internal audit. C) Secretarial Audit. D) Management Audit. Show Answer Correct Answer: C) Secretarial Audit. 5. Which of the following is not an estimate that is usually classified as inventory is..... A) Raw materials. B) Finished good. C) Allowance for bad debt. D) Spare part. Show Answer Correct Answer: C) Allowance for bad debt. 6. An auditor is not easily influenced, is not bound by anyone, does not depend on other people, is called..... A) Profesional. B) Independent. C) Independent. D) Trust. Show Answer Correct Answer: B) Independent. 7. Three major differences between operational and financial audit are the purpose of audit, distribution of report and inclusion of non-financial areas in operational audit. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 8. The condition found by the auditor, after obtaining sufficient audit evidence, concluded that the deviation from accounting principles (misstatement) found was material and pervasive. So the opinion that should be given is..... A) Wajar Tanpa Pengecualian (Unqualified Opinion). B) Unfair (Adverse). C) Reasonable With Exceptions (Qualified Opinion). D) Does Not Give Opinion (Disclaimer). Show Answer Correct Answer: B) Unfair (Adverse). 9. A CPA firm wishes to be adequately assured whether it has fulfilled its responsibility to provide services according to professional standards by: A) Adherence to generally applicable auditing standards. B) Have a proper quality control system. C) Join a professional society that encourages ethical behavior. D) Maintain an independent attitude in the alliance. Show Answer Correct Answer: D) Maintain an independent attitude in the alliance. 10. This corroborating evidence is in the form of a direct written response as known to the third party to a specific request for actual information. This evidence is very reliable, but the procedures used are very expensive. What type of corroborating evidence is meant? A) Confirm. B) Oral evidence. C) Physical evidence. D) Inspection. Show Answer Correct Answer: A) Confirm. 11. Translate:interest-bearing accounts A) Regulatory accounts. B) Undivided accounts. C) Interest-bearing accounts. D) Savings accounts. Show Answer Correct Answer: C) Interest-bearing accounts. 12. When an error is wholly or partially not recorded in the Books of Accounts A) Error of Commission. B) Compensating Errors. C) Errors Of Ommission. D) Duplicating Errors. Show Answer Correct Answer: C) Errors Of Ommission. 13. Independence referred to as the cornerstone of the auditing profession. A) True. B) False. Show Answer Correct Answer: A) True. 14. Internal check is a part of the whole system of A) Internal Control. B) Internal Audit. C) Final Audit. D) Interim Audit. Show Answer Correct Answer: A) Internal Control. 15. Which of the following would an auditor consider in his audit plan when he reviews the client's accounting policies and procedures? A) Method of sampling to be used. B) Preliminary judgement about materiality levels. C) Nature of reports to be rendered. D) Understanding the client's operations and business. Show Answer Correct Answer: D) Understanding the client's operations and business. 16. How many financial reports are in the LKPD? A) 3. B) 1. C) 5. D) 7. Show Answer Correct Answer: C) 5. 17. This type of audit is conducted once in while and that too at the discretion of the owner of the business A) Occasional Audit. B) Partial Audit. C) Periodic Audit. D) Continuous Audit. Show Answer Correct Answer: A) Occasional Audit. 18. Audit reports are accurate, that is, they must present correct evidence and describe the findings correctly A) CORRECT. B) SALAH. Show Answer Correct Answer: A) CORRECT. 19. To be a Auditor he should be a qualified as chartered-accountant. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 20. How many kinds of auditors in the market economy? A) 3 kinds:financial statement audit, compliance audit, operational audit. B) 2 kinds:financial statement audit, compliance audit. C) 1 kind:operational audit. D) 2 kinds:compliance audit, operational audit. Show Answer Correct Answer: A) 3 kinds:financial statement audit, compliance audit, operational audit. ← 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