This quiz works best with JavaScript enabled. Home > Accounting > Auditing > Auditing – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Auditing Quiz 22 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Internal audit is a device for checking the work, where as internal check is a device for doing the work A) True. B) False. C) Not sure. D) Partially right and partially wrong. Show Answer Correct Answer: A) True. 2. Which of the following describe the true relationship between auditor, client and external users? A) Management provides capital to external users and auditor is hired to provide report relied upon by users for assurance. B) External users rely on auditor's report assurance to reduce information risk provided by management. C) Auditor ensure report are based on management decision on the economic event to be presented to external users. D) Management and auditor provide financial statement to external users. Show Answer Correct Answer: A) Management provides capital to external users and auditor is hired to provide report relied upon by users for assurance. 3. ..... systematic record of books and records of a business A) Auditing. B) Vouching. C) Verification. D) Checking. Show Answer Correct Answer: A) Auditing. 4. Which of the following activities would most likely be performed by EDP department? A) Authorising transactions. B) Parity checks. C) Distributing output. D) Correction of transactional errors. Show Answer Correct Answer: A) Authorising transactions. 5. Internal and external auditor performed a different methodology in their audits. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 6. The art of recording the transactions in the books of original entry means A) Accounting. B) Auditing. C) Book-keeping. D) None of the above. Show Answer Correct Answer: C) Book-keeping. 7. Auditors produce ....., stating that the financial statements do not give an entirely true and fair view and there are some problems. A) An unqualified report. B) A qualified report. Show Answer Correct Answer: B) A qualified report. 8. Which of the statements below is true regarding management letters? A) Management letters are prepared to communicate less significant internal control problems. B) Management letters are prepared by management together with auditors to fulfill good governance provisions stipulated by statutory regulations. C) Management letters are required by auditing standards to be prepared before an audit is carried out. D) Management letters are prepared by management in the context of stating assertions about the company's financial reports. Show Answer Correct Answer: A) Management letters are prepared to communicate less significant internal control problems. 9. Which is correct about state audit? A) State Audit organization plays a role as a management tool of the State, especially in the expenditure State budget. B) It helps to improve and strengthen the management of State agencies, or organizations in compliance with law and other regulations such as the business law, the added value tax law, the environment protect law, and accounting law . C) Audit State organizations can perform many kinds of audits such as financial statement audit, performance audit and compliance audit. D) All of above answers. Show Answer Correct Answer: D) All of above answers. 10. If a casual vacancy in the office of auditor arises by his resignation it should only be filled by the company in a A) Board meeting. B) Extraordinary general meeting. C) General meeting. D) Annual general meeting. Show Answer Correct Answer: A) Board meeting. 11. The following are the criteria used by Public Accountants in conducting Accounting Audits: A) The regulations set by the Government. B) Public Accountant Professional Standards. C) Financial Accounting Standards. D) Budget or achievement measure set by the company. Show Answer Correct Answer: C) Financial Accounting Standards. 12. Accountancy starts were book keeping ends A) True. B) False. Show Answer Correct Answer: A) True. 13. Audit services are included in which of the following core services? A) Technology services. B) Management consulting services. C) Assurances services. D) Financial planning services. Show Answer Correct Answer: B) Management consulting services. 14. Application-based controls are implemented to ensure that: A) A. Prevent and detect unauthorized interference. B) B. Data input into the application is valid, complete and accurate. C) C, Access control systems in accordance with organizational policies. D) D. Documentation of user requirements and measuring achievements. Show Answer Correct Answer: C) C, Access control systems in accordance with organizational policies. 15. An audit of financial statements is conducted to determine if the A) Client's internal control is functioning as intended. B) Organization is operating efficiency and effectively. C) Auditee is following specific procedures or rules set down by some higher authority. D) Overall financial statements are stated in accordance with the applicable financial reporting framework. Show Answer Correct Answer: D) Overall financial statements are stated in accordance with the applicable financial reporting framework. 16. KAP is..... A) Indonesian Public Accounting Office. B) Public Audit Office. C) Office of the Public Architect. D) Public accounting firm. Show Answer Correct Answer: D) Public accounting firm. 17. Balance Sheet audit has its origin in A) US. B) UK. C) INDIA. D) AUSTRALIA. Show Answer Correct Answer: A) US. 18. Which of the following characteristics is not an element of audit risk? A) Inherent risk. B) Control risk. C) Materiality risk. D) Detection risk. Show Answer Correct Answer: C) Materiality risk. 19. Which of the following statement is not distinguishing feature for computer based processing and manual processing? A) Errors in a CIS environment are less systemic as compared to errors in manual processing. B) The potential for human error in the CIS environment is lesser as compared to manual system. C) In a computer based accounting system, audit trail is in electronic form. D) Computer processing offers management a variety of analytical tools. Show Answer Correct Answer: A) Errors in a CIS environment are less systemic as compared to errors in manual processing. 20. Which two of the following characteristics apply to internal audit?(1) The purpose is to improve the company's operations.(2) Reports to shareholders on whether the financial statements give a true and fair view of affairs.(3) Auditors may be employees of the company.(4) Evidence is collected in accordance with relevant ISAs. A) (1) and (3). B) (2) and (4). C) (1) and (4). D) (2) and (3). Show Answer Correct Answer: A) (1) and (3). ← 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