This quiz works best with JavaScript enabled. Home > Accounting > Auditing > Auditing – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Auditing Quiz 8 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. While planning an internal audit, the internal auditor obtains knowledge about the auditee to, among other things: A) Develop an attitude of professional skepticism about management's assertions. B) Develop an understanding of the auditee's objectives and risks. C) Make constructive suggestions to management concerning internal control improvements. D) Evaluate whether misstatements in the auditee's performance reports should be communicated to senior management and the audit committee. Show Answer Correct Answer: B) Develop an understanding of the auditee's objectives and risks. 2. Auditors rights A) Huge fee. B) Acces to information. Show Answer Correct Answer: A) Huge fee. 3. What is the basic difference between the accounting process and the auditing process? A) The accounting process is sequential starting from proof of transactions to financial reports and the auditing process is carried out sequentially starting from proof of transactions to financial reports. B) The accounting process is sequential starting from proof of transactions to financial reports, while the auditing process can be done in two directions. C) The accounting process can be carried out in two directions, while the auditing process is carried out sequentially. D) The accounting process can be carried out in two directions and the auditing process can be carried out in two directions. Show Answer Correct Answer: B) The accounting process is sequential starting from proof of transactions to financial reports, while the auditing process can be done in two directions. 4. Auditor qualifications A) Integrity. B) Audit fees. Show Answer Correct Answer: A) Integrity. 5. An examination and evaluation of a firm's or individual's financial records to derive evidence that can be used in a court of law or legal proceeding is referred to as ..... A) Compliance audit. B) Forensic audit. Show Answer Correct Answer: B) Forensic audit. 6. The main requirements for an audit report with an Unqualified Audit Report opinion according to Arens, are as follows except..... A) All balance sheets, profit and loss, retained earnings and cash flow reports are included in the audited financial statements. B) Three general standards have been followed in each assignment. C) There are additional explanatory paragraphs and wording modifications in the audit report. D) Financial reports are presented in accordance with generally accepted accounting standards. Show Answer Correct Answer: C) There are additional explanatory paragraphs and wording modifications in the audit report. 7. Continuous data used by auditors..... A) Current year archive. B) Arsiip auditor. C) Client archives. D) Permanent archive. Show Answer Correct Answer: D) Permanent archive. 8. What are the standards for the public accounting profession in Indonesia? A) THING. B) AICPA. C) PCAOB. D) SPAP. Show Answer Correct Answer: D) SPAP. 9. Which of the following is a limitation of the internal audit function? A) The internal audit report is not circulated to the members. B) Internal audit assignments are designed to meet the needs of the business. C) Internal auditors may be employees of the company. D) Internal auditors may report to an audit committee. Show Answer Correct Answer: C) Internal auditors may be employees of the company. 10. SA 300 deals with A) Materiality. B) Audit Program. C) Audit planning. D) Working Papers. Show Answer Correct Answer: C) Audit planning. 11. When should the Audit Committee make its report to the Court? A) July and October. B) June and November. C) May and October. D) June and December. Show Answer Correct Answer: D) June and December. 12. Providing assurance that the reports prepared by the entity are presented fairly and in accordance with established accounting standards is the function of: A) Management Accountant. B) Finance Manager. C) Independent Auditor. D) Accounting information system. Show Answer Correct Answer: C) Independent Auditor. 13. Who is ultimately responsible for a company's system of internal controls? A) External auditors. B) Board of directors. C) Internal auditors. D) Audit committee. Show Answer Correct Answer: B) Board of directors. 14. Contingent means..... A) Nonprofit. B) Efficient. C) Vital. D) Dependent. Show Answer Correct Answer: D) Dependent. 15. Control 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) Risk occurs if the auditor, without realizing it, does not modify his opinion as appropriate, on a financial report that contains a material misstatement. Show Answer Correct Answer: 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. 16. What is the need for IT security? A) To stop validation. B) To do auditing. C) The need to protect your digital assets and network devices is even greater. D) All of them. Show Answer Correct Answer: C) The need to protect your digital assets and network devices is even greater. 17. Report Making is compulsory in ..... A) Auditing. B) Accounting. Show Answer Correct Answer: A) Auditing. 18. Based on the purpose of auditing: A) Performance audit. B) Compliance audit. C) Financial statement audit. D) All of above answers. Show Answer Correct Answer: D) All of above answers. 19. System of Internal Check is said to exist in an organisation when A) An employee is specifically deputed to check the work of another employee. B) Departmental head checks the work of his subordinates. C) Some outside experts checks the work of employees. D) Another employee of the same department check. Show Answer Correct Answer: D) Another employee of the same department check. 20. A VACANCY CAUSED BY RESIGNATION IS FILLED BY A) Board of directors. B) Employee. C) Managing director. D) Government. Show Answer Correct Answer: A) Board of directors. ← PreviousNext →Related QuizzesAccounting QuizzesAuditing Quiz 1Auditing Quiz 2Auditing Quiz 3Auditing Quiz 4Auditing Quiz 5Auditing Quiz 6Auditing Quiz 7Auditing Quiz 9Auditing Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books