This quiz works best with JavaScript enabled. Home > Accounting > Auditing > Auditing – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Auditing Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The term "Audire" literally means A) . to hear. B) To check. C) To prevent. D) To inform. Show Answer Correct Answer: A) . to hear. 2. An audit enables an independent Certified Public Accountant to issue what is referred to as "an option" . A) True. B) False. Show Answer Correct Answer: B) False. 3. Auditors provide confidence to users of financial statements that the financial statements are free from material misstatement through..... A) Audit materiality. B) Audit opinion. C) Audit risk avoidance. D) None of above. Show Answer Correct Answer: A) Audit materiality. 4. Can the Recordress receive and deposit funds of the Court on a regular basis due to the absence of the Treasurer? A) Yes. B) No. Show Answer Correct Answer: B) No. 5. The following information is not included in the audit engagement letter between those concerned with the audit work on historical financial statements..... A) Audit time schedule. B) A statement that the audit to be carried out by the auditor is based on auditing standards. C) Statement of the names of parties who have a special relationship with the client. D) The client's ability to assist in gathering information to enable the auditor to provide an opinion on the audited financial statements. Show Answer Correct Answer: C) Statement of the names of parties who have a special relationship with the client. 6. Main Object of auditing is to A) Detect Errors. B) Prevent errors. C) Detect and Prevent errors. D) None of these. Show Answer Correct Answer: C) Detect and Prevent errors. 7. Audit note book is maintained by audit staff to note A) Errors. B) Queries. C) Any difficulty. D) All of these. Show Answer Correct Answer: D) All of these. 8. A number of checks and controls exercised in a business to ensure its efficient working is known as ..... A) Internal check. B) Internal control. C) Internal audit. D) None of above. Show Answer Correct Answer: B) Internal control. 9. Testing of internal control is carried out at the audit stage, namely; A) Planning. B) Implementation. C) Reporting. D) Pre Planning. Show Answer Correct Answer: A) Planning. 10. Who normally appoints the external auditors of a company? A) Directors. B) Shareholders. C) Audit committee. D) Senior management. Show Answer Correct Answer: B) Shareholders. 11. General Standards include all of the following except ..... A) Understanding the Entity. B) Independence. C) Adequate Training. D) Due Professional Care. Show Answer Correct Answer: A) Understanding the Entity. 12. Which of the followings are not the power or rights of auditors in S174(4-9)? A) A right to make oral representation when company propose to dismiss him as an auditor. B) A right to attend any general meetings that concerns him as an auditor. C) A right to information and explanation he considers necessary. D) A right to access at all times to the books and records. Show Answer Correct Answer: A) A right to make oral representation when company propose to dismiss him as an auditor. 13. When an auditor reviews additions to the equipment (fixed asset) account to make sure that fixed assets are not overstated, she wants to obtain evidence as to management's assertion regarding A) Completeness. B) Existence. C) Valuation and allocation. D) Rights and obligations. E) Occurrence. Show Answer Correct Answer: B) Existence. 14. The final stage in the audit process is..... A) Prepare audit evaluation. B) Prepare audit summaries. C) Prepare audit reports. D) Prepare audit performance reports. Show Answer Correct Answer: C) Prepare audit reports. 15. A professional who has the duty to ensure that a financial report is presented fairly in all material respects is called..... A) Professional Accountant. B) Internal accountant. C) Auditor internal. D) External auditor. Show Answer Correct Answer: D) External auditor. 16. Latin word 'audire' means A) To adjust. B) To dare. C) To hear. D) To here. Show Answer Correct Answer: C) To hear. 17. A) 2. B) 3. C) 4. D) 5. Show Answer Correct Answer: A) 2. 18. KAP is an auditor whose job is to carry out audits of state finances in government agencies, namely..... A) CORRECT. B) SALAH. Show Answer Correct Answer: B) SALAH. 19. Which of the following is the most appropriate definition of the external audit? A) The external audit is an exercise carried out by auditors in order to give an opinion on whether the financial statements of a company are materially misstated. B) The external audit is an exercise carried out in order to give an opinion on the effectiveness of a company's internal control system. C) The external audit is performed by management to identify areas of deficiency within a company and to make recommendations to mitigate those deficiencies. D) The external audit provides negative assurance on the truth and fairness of a company's financial statements. Show Answer Correct Answer: A) The external audit is an exercise carried out by auditors in order to give an opinion on whether the financial statements of a company are materially misstated. 20. Translate:Reconsidering Opportunities for Fraud A) Reviewing the opportunities for fraud. B) Judgements will be challenged. C) Reviewing safeguarding assets. D) To provide impartial audit review. Show Answer Correct Answer: A) Reviewing the opportunities for fraud. ← PreviousNext →Related QuizzesAccounting QuizzesAuditing Quiz 1Auditing Quiz 3Auditing Quiz 4Auditing Quiz 5Auditing Quiz 6Auditing Quiz 7Auditing Quiz 8Auditing Quiz 9Auditing Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books