This quiz works best with JavaScript enabled. Home > Accounting > Auditing > Auditing – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Auditing Quiz 20 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following types of audit evidence is generally the most reliable ..... A) Bank statement. B) Analytical procedures. C) Bank Confirmation. D) Inquiries made of audit committee. Show Answer Correct Answer: C) Bank Confirmation. 2. The term audit is derived from A) French. B) Latin. C) Greek. D) Japanese. Show Answer Correct Answer: B) Latin. 3. The auditor cannot provide guarantees about the accuracy of the assertions in the financial statements because..... A) Financial statements are prepared in accordance with generally accepted accounting principles. B) The client's internal controls are unreliable. C) Auditors are not trained to check the accuracy of the information presented in financial statements. D) Auditors cannot examine all transactions reflected in the financial statements based on cost-benefit considerations. Show Answer Correct Answer: D) Auditors cannot examine all transactions reflected in the financial statements based on cost-benefit considerations. 4. Auditor unique role is for the following expertise except for A) Determining proper audit procedure. B) Provide relevant information on economic event. C) Deciding the number and types of items to test evidence. D) Evaluating audit results. Show Answer Correct Answer: B) Provide relevant information on economic event. 5. Which of the following techniques would most likely provide an auditor with the most assurance about the effectiveness of the operation of an internal control? A) Inquiry of client personnel. B) Recomputation of account balance. C) Observation of client personnel. D) Confirmation with outside parties. Show Answer Correct Answer: C) Observation of client personnel. 6. The source of information for studying the discussion of functions and authorization systems in client companies is..... A) Organizational chart and job descriptions. B) Account manual. C) Internal auditors' reports, working papers, and audit programs. D) Report on recommendations for improving internal control and the previous year's audit report. Show Answer Correct Answer: A) Organizational chart and job descriptions. 7. Audit evidence that is more focused on direct testing of transactions, account balances, and the system used to record these various transactions to finally produce an account balance is..... A) Bukti audit bottom-up. B) Confirm. C) Recalculation. D) Bukti audit top-down. Show Answer Correct Answer: A) Bukti audit bottom-up. 8. Why are we required to audit our books twice per year? A) Requirement of the Court. B) Required by the Commandress. C) Required by Imperial Court Constitution and General Laws. D) Requirement of the Recordress and Treasurer. Show Answer Correct Answer: C) Required by Imperial Court Constitution and General Laws. 9. .... auditing helps use to reduce manual paper work A) Electronic. B) Internal. C) External. D) None of above. Show Answer Correct Answer: A) Electronic. 10. The following are internal controls, except..... A) Control environment. B) Risk assessment. C) Effectiveness and efficiency of operations. D) Control activities. Show Answer Correct Answer: C) Effectiveness and efficiency of operations. 11. Which includes stakeholders who are not directly involved in the company: A) A. Shareholders. B) Customers. C) Vendor. D) Employee. Show Answer Correct Answer: A) A. Shareholders. 12. .... auditing is computer assisted auditing A) Private. B) Government. C) Electronic. D) None of above. Show Answer Correct Answer: C) Electronic. 13. Which of the following is TRUE regarding audit? A) An audit gives the reader reasonable assurance of the truth and fairness ofthe financial statements. B) Audit report guarantees that the financial statements are correct. C) Audit gives an absolute assurance that the accounts are free from materialmisstatement. D) None of above. Show Answer Correct Answer: A) An audit gives the reader reasonable assurance of the truth and fairness ofthe financial statements. 14. CAATTS is also known as ..... A) Cost and account treatment. B) Computer Assisted Audit tools Techniques. C) Classification and Accounting tools. D) Cost and Auditing tools. Show Answer Correct Answer: B) Computer Assisted Audit tools Techniques. 15. Vouchers can not be used for auditing A) True. B) False. Show Answer Correct Answer: B) False. 16. A threat that occurs when previously given considerations must be re-evaluated by the Practitioner responsible for those considerations is a threat..... A) Personal study. B) Personal interests. C) Advocacy. D) Proximity. Show Answer Correct Answer: A) Personal study. 17. Of the things below, which is the basis for the application of generally accepted auditing standards, especially field work and reporting standards? A) Internal control structure. B) Corroborating evidence. C) Materiality and relative risk. D) Adequate confidence. Show Answer Correct Answer: C) Materiality and relative risk. 18. The stage of the auditing process that is crucial in the success of an audit assignment is usually the initial stage of the audit, namely..... A) Audit planning. B) Audit working papers. C) Audit procedures. D) Audit evidence. Show Answer Correct Answer: A) Audit planning. 19. Assertions about existence or occurrence 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 expenses have been included in the financial statements at the proper amounts. E) Whether certain components of the financial statements are properly classified, described and disclosed. Show Answer Correct Answer: A) Whether the entity's assets or liabilities existed at a particular date and whether the recorded transactions have occurred during a particular period. 20. The following are characteristics of audit evidence that are more reliable, except audit evidence..... A) Obtained from sources outside the entity. B) Obtained from entities with effective internal controls. C) Obtained indirectly by the auditor. D) Comes from independent legal experts. Show Answer Correct Answer: C) Obtained indirectly by the auditor. ← 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