This quiz works best with JavaScript enabled. Home > Accounting > Auditing > Auditing – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Auditing Quiz 9 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. .... are the assets which may arise on the happening of an uncertain event. A) Fixed assets. B) Intangible assets. C) Contingent assets. D) Wasting assets. Show Answer Correct Answer: C) Contingent assets. 2. What are the techniques of verification? A) Inspection. B) Observation. C) Confirmation. D) All the above. Show Answer Correct Answer: D) All the above. 3. Items that are considered to be ....., are significant to financial statement users A) Verifiable. B) Recorded. C) Fairly Presented. D) Material. Show Answer Correct Answer: D) Material. 4. Which of the following statements is incorrect: A) External audit produces an audit opinion. B) External audit seeks to produce findings. C) External audit is responsible to shareholders. D) External audit can publish audit results. Show Answer Correct Answer: B) External audit seeks to produce findings. 5. ..... is a systematic examination of the books and records or a business. A) Auditing. B) Vouching. C) Checking. D) Verification. Show Answer Correct Answer: A) Auditing. 6. Auditing begins where ..... ends A) Selling. B) Production. C) Accounting. D) Year. Show Answer Correct Answer: C) Accounting. 7. His ..... includes strategy development, and pricing and packaging issues, as well as regulatory affairs. A) Remit. B) Scope. C) Entity. D) Payroll. Show Answer Correct Answer: A) Remit. 8. What is meant by auditing? A) Examination of financial statements according to evidence. B) The inspection performed between the audit subject and the applicable standards. C) Inspection performed to test the conformity of the audit object with the applicable standards. D) Error checking by auditors. Show Answer Correct Answer: C) Inspection performed to test the conformity of the audit object with the applicable standards. 9. Purpose of inventory inspection, except..... A) Inventory cut-off procedures are declared to exist. B) Inventory has been assessed in accordance with Generally Accepted Accounting Principles (PSAK) which are applied consistently. C) Physical inventory actually exists. D) Slow moving, obsolete, damaged inventory can be identified appropriately and reserved in adequate quantities. Show Answer Correct Answer: A) Inventory cut-off procedures are declared to exist. 10. Who is responsible for the appointment of statutory auditor of a limited company? A) Directors of the company. B) Members of the company. C) The Central Government. D) All of the above. Show Answer Correct Answer: B) Members of the company. 11. Asset valuation is done by the ..... himself. A) Auditor. B) Shareholder. C) Proprietor. D) Management. Show Answer Correct Answer: C) Proprietor. 12. Personal qualities that a successful auditor must have, except: A) Integrity. B) Curiosity. C) Creativity. D) Not flexible. Show Answer Correct Answer: D) Not flexible. 13. Which of the following parties are involved in preparing and auditing financial statements? A) Management. B) Audit committee. C) Internal audit function. D) External auditor. E) All of the above. Show Answer Correct Answer: E) All of the above. 14. If the financial statements, including notes to the financial statements, do not explain the important information required by generally accepted accounting principles in Indonesia, what opinion can be given by the auditor..... A) Reasonable without exception. B) Reasonable with exceptions. C) Explanatory language added to the standard auditor's report. D) The statement does not provide an opinion. Show Answer Correct Answer: B) Reasonable with exceptions. 15. Which of these questions is a correct statement? A) There is an inverse relationship between the level of risk and the effort made by the auditor to gather audit evidence. B) There is a direct relationship between the level of risk and the efforts made by the auditor to collect audit evidence. C) There is no relationship between the level of risk and the efforts made by the auditor to collect audit evidence. D) The level of risk does not need to be considered by the auditor in assessing the amount of materiality. Show Answer Correct Answer: A) There is an inverse relationship between the level of risk and the effort made by the auditor to gather audit evidence. 16. The company's internal audit is responsible for: A) Shareholders. B) Manajer accounting. C) Tax Manager. D) Board of Directors. Show Answer Correct Answer: D) Board of Directors. 17. The primary purpose of establishing quality control policies and procedures for deciding on client evaluation is to- A) Ensure adherence to generally accepted auditing standards. B) Acceptance or retention of clients whose management does not lack integrity. C) Ensure audit fees is charged according to the type of audit work assigned. D) All of the above. Show Answer Correct Answer: B) Acceptance or retention of clients whose management does not lack integrity. 18. The process of auditing A) Implementing, completing and planning. B) Implementing, planning and completing. C) Planning, implementing and completing. D) None of above. Show Answer Correct Answer: C) Planning, implementing and completing. 19. In case of government company, the auditor is appointed by ..... A) Central Government. B) State government. C) Board of director. D) None of above. Show Answer Correct Answer: A) Central Government. 20. Audit coverage of financial statements is usually within the accounting period, consisting of..... A) 6 months once. B) Once a year. Show Answer Correct Answer: B) Once a year. ← PreviousNext →Related QuizzesAccounting QuizzesAuditing Quiz 1Auditing Quiz 2Auditing Quiz 3Auditing Quiz 4Auditing Quiz 5Auditing Quiz 6Auditing Quiz 7Auditing Quiz 8Auditing Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books