This quiz works best with JavaScript enabled. Home > Accounting > Auditing > Auditing – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Auditing Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The function and role of independent audit organization A) The independent audit organization plays role as an independent party (third party) presenting examination and confirmation function, and gives an opinion about the true and fair view of audited information. B) The user information has reliance basis to give his decision suitably. C) The result of audit also helps audited entity to see themselvesobjectively. D) The audit consultation in the management letter will help top of management to give the necessary adjustment in business as well as management task. E) All of the above answers. Show Answer Correct Answer: E) All of the above answers. 2. How many recording errors at PT Krakatau must be confirmed? A) 110.000.000. B) 22.000.000. C) 11.000.000. D) 220.000.000. Show Answer Correct Answer: C) 11.000.000. 3. Implement Risk profiling and control measures occurs in which PDCA cycle. A) Do. B) Plan. C) Check. D) Act. Show Answer Correct Answer: B) Plan. 4. General standards of generally accepted auditing standards include the requirement that: A) The auditor's report states whether or not the financial statements comply with generally accepted accounting principles. B) Field work has been adequately planned and supervised. C) Professional skills have been used carefully and thoroughly by the auditor. D) Informative disclosures in financial reports are quite reasonable. Show Answer Correct Answer: A) The auditor's report states whether or not the financial statements comply with generally accepted accounting principles. 5. The Code of Ethics provides many benefits for the profession, including the following, except..... A) A code can be a stable guide to organizing right or wrong or the continuity of decision making. B) A code can be a guide especially under normal circumstances. C) A code not only guides employee behavior but can also control autocratic employee powers. D) A code clearly in its own business interests, to maintain business order ethically. Show Answer Correct Answer: B) A code can be a guide especially under normal circumstances. 6. An auditor is able to make unbiased judgments, meaning: A) Objectivity. B) Independence. C) Engagement. D) Compliance. Show Answer Correct Answer: D) Compliance. 7. How can we remember the 6 elements of Quality Control? A) SAVE US. B) HELP ME. C) HEAL ME. D) None of the above. Show Answer Correct Answer: C) HEAL ME. 8. "Auditor is a watch dog and not a blood hound" decision was given in the case of A) London and General Bank 1895. B) Kingston Cotton Mills Ltd 1896. C) Irish woolen Company Vs. Tyson and others. D) None of these. Show Answer Correct Answer: B) Kingston Cotton Mills Ltd 1896. 9. The value at which the assets are shown in the books of accounts is known as ..... A) Book value. B) Market value. C) Replacement value. D) Cost value. Show Answer Correct Answer: A) Book value. 10. How many types of audit opinions are there? A) 5. B) 2. C) 3. D) 4. Show Answer Correct Answer: D) 4. 11. Following are the types of management audit except A) Audit of financial statements. B) Compliance audit. C) Management audit. D) Audit internal. Show Answer Correct Answer: C) Management audit. 12. WHICH OF THE FOLLOWING IS NOT THE RIGHT OF A AUDITOR A) To inspect branch accounts. B) To sign audit reports. C) To seek legal and technical advice. D) To give instructions to accounts officer. Show Answer Correct Answer: D) To give instructions to accounts officer. 13. The following are elements of internal control, 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. 14. The following are example of advisory services offer by public accounting firmsEXCEPT A) Audit financial statements. B) Designing financial information system. C) Providing internal audit services. D) Providing bookkeeping of the accounting records. Show Answer Correct Answer: A) Audit financial statements. 15. Reducing detailed testing is the planning stage of analytical procedures with the aim of..... A) Main. B) Seconds. Show Answer Correct Answer: B) Seconds. 16. Independent audits help communicate economic data, because audits: A) Confirm the accuracy of management's financial presentation. B) Increase the reliability of financial reports. C) Ensure that financial data is presented fairly. D) Ensure readers of financial reports that any fraudulent activity has been corrected. Show Answer Correct Answer: C) Ensure that financial data is presented fairly. 17. The existence of audit risk can be identified from the statement in the auditor's standard report that: A) Obtain reasonable assurance about whether the financial statements are free from material misstatement. B) Assess the accounting principles used while evaluating the presentation of the financial statements as a whole. C) Recognize that some problems, individually or collectively, are important, while other problems are not important. D) Responsible for expressing opinions on financial reports, which are the responsibility of management. Show Answer Correct Answer: D) Responsible for expressing opinions on financial reports, which are the responsibility of management. 18. If during the audit process it is found that items in the financial statements contain material misstatements and are not in accordance with standards, then the auditor has the right to issue an opinion in the form of: A) WTP. B) WDP. C) Unreasonable. D) Not Giving Opinions. Show Answer Correct Answer: C) Unreasonable. 19. Work must be planned as well as possible and if assistants are used they must be supervised properly, is one of the statements of the standard..... A) The. One one. B) B. Field work. C) C. Reporting. D) D. Attestation. Show Answer Correct Answer: B) B. Field work. 20. The process of compiling findings (negative findings) includes the following steps, except..... A) The activity of compiling findings must be broad enough, so that examiners can be clear about the basis for their conclusions and recommendations. B) Identify the boundaries of authority and responsibility within the organization in relation to the activities involved. C) Determine the reasons for the deficiency or weakness. D) Identify deviations/weaknesses of activities/parts. Show Answer Correct Answer: A) The activity of compiling findings must be broad enough, so that examiners can be clear about the basis for their conclusions and recommendations. ← PreviousNext →Related QuizzesAccounting QuizzesAuditing Quiz 1Auditing Quiz 2Auditing Quiz 3Auditing Quiz 4Auditing Quiz 5Auditing Quiz 6Auditing Quiz 8Auditing Quiz 9Auditing Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books