This quiz works best with JavaScript enabled. Home > Accounting > Auditing > Auditing – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Auditing Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Audit means..... A) Recording business transactions. B) Preparing the final accounts. C) Examination of books, accounts, vouchers etc. D) None of above. Show Answer Correct Answer: C) Examination of books, accounts, vouchers etc. 2. What is the difference between modern and traditional audit functions? A) -Traditional audit function:Confirmation & assurance (in the past andpresent)-Modern audit function:Recommendation & consultation (in the future). B) -Traditional audit function:Recommendation & consultation (in the future).-Modern audit function:Confirmation & assurance (in the past andpresent). C) There is no difference. D) -Traditional audit function:Recommendation-Modern audit function:Confirmation. Show Answer Correct Answer: A) -Traditional audit function:Confirmation & assurance (in the past andpresent)-Modern audit function:Recommendation & consultation (in the future). 3. This type of corroborating evidence can be obtained from an inspection because of its existence. Generally, this evidence is very reliable, but it is possible that the auditor who collects the evidence is unable to determine the quality, condition or value of the evidence, so it is not uncommon for a specialist to be needed. What type of evidence is meant? A) Question and answer. B) Inspection. C) Physical evidence. D) Bukti documents. Show Answer Correct Answer: C) Physical evidence. 4. Financial reports that have been audited by an independent auditor are called: A) Audited financial statement. B) Unaudited financial statements. C) All true. D) None of above. Show Answer Correct Answer: A) Audited financial statement. 5. In carrying out their responsibilities as professionals, each member must always use moral and professional considerations in all activities they carry out. This explanation is in accordance with IAI's ethical principles, namely..... A) Professional responsibility. B) Public interest. C) Integrity. D) Objectivity. Show Answer Correct Answer: A) Professional responsibility. 6. The following are not part of audit procedures that can be used to obtain audit evidence. A) Investigation. B) Physical examination. C) Observation. D) Inspection. Show Answer Correct Answer: A) Investigation. 7. An ..... checks whether overall approach to health and safety is delivering the results you want A) Audit. B) Risk Profiling. C) Control measures. D) Performances. Show Answer Correct Answer: A) Audit. 8. Which of the following factors does not create a demand for external audit services? A) Potential bias by management in providing information. B) Requirement of the regulation. C) Complexity of the accounting processing systems. D) Remoteness between a user and the organisation. Show Answer Correct Answer: B) Requirement of the regulation. 9. Which statement is true regarding illegal actions committed by clients? A) The auditor's responsibility to detect legal violations that have a direct and material impact on the financial statements is the same as the responsibility for errors and fraud. B) An audit in accordance with generally accepted auditing standards generally includes audit procedures specifically designed to detect unlawful acts that have an indirect but material impact on the financial statements. C) Auditors view unlawful acts more from the perspective of the reliability of management's presentation rather than in relation to audit objectives derived from financial statement assertions. D) The auditor is not responsible for detecting unlawful actions committed by clients that have an indirect impact on the financial statements. Show Answer Correct Answer: A) The auditor's responsibility to detect legal violations that have a direct and material impact on the financial statements is the same as the responsibility for errors and fraud. 10. The beneficiary (s) of audit report is/are ..... A) Creditor. B) Income tax authority. C) Government. D) All the above. Show Answer Correct Answer: D) All the above. 11. The thing that is the basis of the accounting profession, where the auditor will be neutral towards the entity and will be objective, is the meaning of..... A) Auditor's responsibilities. B) Auditor risk. C) Auditor independence. D) Auditor professionalism. Show Answer Correct Answer: C) Auditor independence. 12. Type of Assurance Services: A) 1. Audit 2. Internal Control over Financial Reporting 3. Review 4. Information Technology 5. Other. B) 1. Audit 2. Internal Control over Financial Reporting 3. Review 4. Information Technology. C) 1. Internal Control over Financial Reporting 2. Review 3. Information Technology. D) None of above. Show Answer Correct Answer: A) 1. Audit 2. Internal Control over Financial Reporting 3. Review 4. Information Technology 5. Other. 13. One of the stages in the strategic system for understanding the client's business and business fields, except..... A) Client's business field. B) Client environment. C) Client financial reports. D) Measurement and performance. Show Answer Correct Answer: C) Client financial reports. 14. When is evidential matter, generally, considered sufficient? A) When it constitutes entire population. B) When it is enough to provide a basis for giving reasonable assurance regarding truthfulness. C) When it is objective and relevant. D) When auditor collects and evaluates it independently. Show Answer Correct Answer: B) When it is enough to provide a basis for giving reasonable assurance regarding truthfulness. 15. Balance sheet audit included verification of ..... A) Assets. B) Liabilities. C) Income and expenditure accounts where appropriate. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. Auditor do the valuation of assets A) True. B) False. C) None. D) None of above. Show Answer Correct Answer: B) False. 17. Independent audit firms only conduct audit financial statements.Is this statement true or false? A) True. B) False. Show Answer Correct Answer: B) False. 18. The auditor must consider the level of reliability and type of evidence to be collected in accordance with the objectives and scope of the audit as follows, except testimonial evidence A) CORRECT. B) SALAH. Show Answer Correct Answer: B) SALAH. 19. Which of the following methods is not a method used by auditors to collect information on the internal controls that apply in the client company..... A) Standard internal control questionnaire. B) Written description. C) Flow chart. D) Tests of controls. Show Answer Correct Answer: D) Tests of controls. 20. Is the Recordress required to tum over to the Audit Committee as part of her records, all committee reports handling funds? A) Yes. B) No. Show Answer Correct Answer: A) Yes. ← PreviousNext →Related QuizzesAccounting QuizzesAuditing Quiz 1Auditing Quiz 2Auditing Quiz 4Auditing Quiz 5Auditing Quiz 6Auditing Quiz 7Auditing Quiz 8Auditing Quiz 9Auditing Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books