This quiz works best with JavaScript enabled. Home > Accounting > Auditing > Auditing – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Auditing Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A CPA firm studies the increasing experience of its personnel to determine whether personnel who meet the criteria will be assigned to a higher level of responsibility. The following is proof of the office's compliance with the standards set regarding: A) Supervision and review. B) Continuing professional education. C) Professional development. D) Quality control. Show Answer Correct Answer: C) Professional development. 2. What is the kind of audited information? A) -The first, financial information.-The second, operational information.-The third, compliant information. B) -The first, financial information.-The second, operational information. C) Financial information. D) None of above. Show Answer Correct Answer: A) -The first, financial information.-The second, operational information.-The third, compliant information. 3. What is not a core role of an internal auditor is: A) Providing guarantees in the risk management process. B) Evaluate the risk management process. C) Coordinate ERM activities. D) Provides assurance that risks have been properly evaluated. Show Answer Correct Answer: A) Providing guarantees in the risk management process. 4. Audit risk is..... A) The susceptibility of an account balance or class of transactions to a material misstatement, assuming that there are no related internal control policies and procedures. B) The risk of material misstatement in an assertion that cannot be prevented or detected in a timely manner by the entity's internal control. C) Risk resulting from the auditor not being able to detect material misstatements contained in an assertion. D) The risk that occurs if the auditor, without realizing it, does not communicate his opinion as appropriate, on a financial report that contains material misstatement. Show Answer Correct Answer: D) The risk that occurs if the auditor, without realizing it, does not communicate his opinion as appropriate, on a financial report that contains material misstatement. 5. External auditor considered reliance on internal auditor based on the evaluation of effectiveness of audit conduct by internal auditor if A) Independence of the audit team have been evaluated. B) Competency and skills needed are achieved. C) Recommendation from client point of view accepted. D) Relevant audit tests of the internal controls and financial statement have been performed. Show Answer Correct Answer: C) Recommendation from client point of view accepted. 6. ..... Audit is done by a third party and provides an independent view A) Internal. B) External. C) Environmental. D) None. Show Answer Correct Answer: B) External. 7. Before the work of audit commenced, the auditor should plans out the whole of audit work is called A) Audit note. B) Audit plan. C) Audit risk. D) Audit programme. Show Answer Correct Answer: D) Audit programme. 8. In an examination, is the examiner's recommendation not a necessity? A) Investigative Examination. B) Audit. C) Compliance Check. D) Performance Check. Show Answer Correct Answer: A) Investigative Examination. 9. Who is EQCR? A) The auditor signs the auditor's report. B) Senior Assistant Auditor. C) Audit supervisor. D) Work quality control reviewer. Show Answer Correct Answer: D) Work quality control reviewer. 10. Which one of the following is not a principle of Internal Control? A) Competent and Trustworthy Personnel. B) Segregation of duties. C) Sound practices. D) Unsound Mind. Show Answer Correct Answer: D) Unsound Mind. 11. Auditor can be held liable for any misstatements in A) Audit certificate. B) Audit report. C) Nonr. D) None of above. Show Answer Correct Answer: A) Audit certificate. 12. The first auditor of the company other than govt company is appointed by BOD within ..... of its incorporation A) 10 days. B) 20 days. C) 30 days. D) 40 days. Show Answer Correct Answer: C) 30 days. 13. A ..... is a systematic capturing of how a client behaves in a given set of contexts and situations A) Behavioural Audit. B) Procedural Audit. C) Operational Audit. D) All. Show Answer Correct Answer: A) Behavioural Audit. 14. Internal auditor is appointed by ..... A) Management. B) Shareholders. C) Government. D) None of above. Show Answer Correct Answer: A) Management. 15. The source of information that can be used for Auditing are Internal and external A) True. B) False. Show Answer Correct Answer: A) True. 16. The sequence of steps in gathering audit evidence as the basis for the auditor's opinion is ..... A) Tests of controls, determination of control risk and substantive tests. B) Control risk assessment, tests of controls and substantive tests. C) Substantive tests, control risk assessments and tests of controls. D) Control risk assessment, Substantive tests, and Tests of controls. Show Answer Correct Answer: B) Control risk assessment, tests of controls and substantive tests. 17. When the directors of company should appoint an auditor? A) During Emergency General Meeting. B) Before First Annual General Meeting. C) Every Annual General Meeting. D) After Board of Directors Meeting. Show Answer Correct Answer: B) Before First Annual General Meeting. 18. Audit report along with annual accounts is given by A) Statutory Auditor. B) Internal Auditor. C) Government Auditor. D) Secretarial Auditor. Show Answer Correct Answer: A) Statutory Auditor. 19. Erroneous data has been detected by computer program controls. It has been excluded from processing and printed separately "Error Report" . Who should most probability by review and follow up on this report? A) System, analyst. B) Data control group. C) Programmer. D) Computer operator. Show Answer Correct Answer: A) System, analyst. 20. What is a Bin card? A) A register containing all cash transactions. B) A software used in Auditing. C) Printed cards used for accounting for the stock of material, in stores. D) All of the above. Show Answer Correct Answer: C) Printed cards used for accounting for the stock of material, in stores. ← PreviousNext →Related QuizzesAccounting QuizzesAuditing Quiz 1Auditing Quiz 2Auditing Quiz 3Auditing Quiz 5Auditing Quiz 6Auditing Quiz 7Auditing Quiz 8Auditing Quiz 9Auditing Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books