This quiz works best with JavaScript enabled. Home > Accounting > Auditing > Auditing – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Auditing Quiz 21 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The files obtained by the Third Party are a confirmation response from..... A) Customers (about receivables). B) Analysis of whether or not the Allowance for Bad Debts is sufficient. C) Trial balance. D) Income statement. Show Answer Correct Answer: A) Customers (about receivables). 2. The principles of the auditor's code of ethics are: A) Responsibility, Public interest, Integrity, Objectivity, Accuracy or thoroughness, Scope and nature of services. B) Responsibility, Public interest, Integrity, Objectivity and independence, Accuracy or thoroughness, Scope and nature of services. C) Responsibility, Public interest, Integrity, Independence, Accuracy or thoroughness, Scope and nature of services. D) Responsibility, Public interest, Integrity, Objectivity and independence, Accuracy or thoroughness, Nature of services. Show Answer Correct Answer: B) Responsibility, Public interest, Integrity, Objectivity and independence, Accuracy or thoroughness, Scope and nature of services. 3. Process of checking the evidence of the entries is called ..... A) Verification. B) Observation. C) Vouching. D) None of above. Show Answer Correct Answer: C) Vouching. 4. Vouchers are evidence of a transaction A) True. B) False. Show Answer Correct Answer: A) True. 5. What inventory method does PT Sugus use? A) FIFO. B) LIFO. C) FILO. D) Weighted Average. Show Answer Correct Answer: A) FIFO. 6. To determine whether the internal control described in the accounting system flow chart and answers to the internal control questionnaire actually exists and is implemented, the auditor takes two methods, namely..... A) Perform tests of controls and substantive tests. B) Carry out transaction testing by following the implementation of certain transactions and testing certain transactions that have occurred and which have been recorded. C) Conducting tests of certain transactions that have occurred and that have been recorded and substantive tests. D) Carry out transaction testing by following the implementation of certain transactions and testing controls. Show Answer Correct Answer: B) Carry out transaction testing by following the implementation of certain transactions and testing certain transactions that have occurred and which have been recorded. 7. What is the meaning of IT Auditing? A) It is the examination and evaluation of an organization's information technology infrastructure, policies and operations. B) It is the examination and evaluation of an organization's information technology infrastructure. C) To check financial records. D) To validate Computer hardware only. Show Answer Correct Answer: A) It is the examination and evaluation of an organization's information technology infrastructure, policies and operations. 8. In India, balance sheet audit is synonymous to A) Annual audit. B) Continuous audit. C) Detailed audit. D) Statutory audit. Show Answer Correct Answer: A) Annual audit. 9. Which of the following is known as a compensating control, for the absence of segregation controls. A) Access control. B) Independent verification. C) Authorisation. D) Supervision. Show Answer Correct Answer: D) Supervision. 10. Statement I Fixed assets have different characteristics from current assets. This difference has an impact on the substantive tests of the two classes of assets. Statement II Fixed asset accounts have large balances in the balance sheet; Transactions related to fixed assets tend to occur more frequently, resulting in large balances A) Statement I is True Statement II is False. B) True Statement THIS Statement is True. C) Statement I is False. Statement II is False. D) Statement I is False Statement II is True. Show Answer Correct Answer: A) Statement I is True Statement II is False. 11. Auditing standards are details of the Statement of Auditing Standards consisting of..... A) 11 standard. B) 10 standards. C) 9 standards. D) 8 standards. Show Answer Correct Answer: B) 10 standards. 12. Who is the highest position in the audit firm? A) Audit partner. B) Audit manager. C) Audit director. D) Audit senior manager. Show Answer Correct Answer: A) Audit partner. 13. HEAL-ME has specific conduct for ALL engagements, but GAAS has specific conduct for how many engagements? A) Half of them. B) Individual. C) All. D) None. E) This question doesn't make any sense. Show Answer Correct Answer: B) Individual. 14. The following are the objectives of internal control, except..... A) Reliability of financial reporting. B) Compliance with applicable laws and regulations. C) Effectiveness and efficiency of operations. D) Risk assessment. Show Answer Correct Answer: D) Risk assessment. 15. The party who receives the report from internal audit is A) Third parties (investors and creditors). B) Management of the entity concerned. C) Government. D) Management of corporate entities. Show Answer Correct Answer: B) Management of the entity concerned. 16. ....section of Companies Act deals with share Capital A) 69. B) 60. C) 50. D) 59. Show Answer Correct Answer: A) 69. 17. The following are the basic principles that an auditor must have, unless appropriate A) CORRECT. B) SALAH. Show Answer Correct Answer: A) CORRECT. 18. Regarding auditor's duty of confidentiality, auditors must never, under any circumstances, disclosures any matters of which they become aware during the course of the audit to third parties, without the permission of the client. A) True. B) False. Show Answer Correct Answer: B) False. 19. Types of fraud A) Manipulation of accounts. B) Manipulation of transactions. C) Wrong entry. D) Lack of documentary evidences. Show Answer Correct Answer: A) Manipulation of accounts. 20. The auditor identifying why the client wants or needs an audit is an internal matter A) Audit level. B) Initial stage of the audit. C) Audit risk. D) Audit plan. Show Answer Correct Answer: B) Initial stage of the 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