This quiz works best with JavaScript enabled. Home > Finance > Accounting > Auditing > Auditing – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Auditing Quiz 10 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Can the Treasurer collect and deposit funds of the constituent court? A) No. B) Yes. Show Answer Correct Answer: A) No. 2. Entering capital expenses as revenue expenses in the books of accounts is1. A) Error of Omission. B) B) Error of Commission. C) D) Compensating principle. D) Error of principle. Show Answer Correct Answer: D) Error of principle. 3. What is the principal objective of an independent auditor to obtain an understanding of internal control and assess control risk in an audit of financial statements? A) To comply with generally accepted accounting principles. B) To obtain a measure of confidence in management efficiency. C) To maintain independence in mental attitude during the audit. D) To determine the nature, timing and extent of subsequent audit work. Show Answer Correct Answer: D) To determine the nature, timing and extent of subsequent audit work. 4. Management statements contained in the components of financial statements are called..... A) Oral evidence. B) Management assertion. C) Audit evidence. D) Confirm. Show Answer Correct Answer: B) Management assertion. 5. Which of the following is NOT the categories of attestation service of a CA firm? A) Services provided regarding information technology. B) Audit of internal control over financial reporting. C) Management consulting services. D) Review of historical financial statement. Show Answer Correct Answer: C) Management consulting services. 6. Which of the followings are not the disqualified of auditor? A) Employee of an officer's firm. B) A shareholder of the client's firm. C) Employee of an employee of an officer's firm. D) Employee of an officer of audit firm. Show Answer Correct Answer: D) Employee of an officer of audit firm. 7. IAPI The organization that oversees Indonesian public accountants. A) SALAH. B) CORRECT. Show Answer Correct Answer: B) CORRECT. 8. Generally, the following parties are addressed to the independent auditor's report, namely..... A) Company, shareholders, employees. B) Board of commissioners, shareholders, board of directors. C) Board of directors, board of commissioners, creditors. D) Company, company directors, customers. Show Answer Correct Answer: B) Board of commissioners, shareholders, board of directors. 9. Which are the steps involved in Internal check with regard to purchases? A) Requisition & Enquiry. B) Purchase & Receipt of Goods. C) Making the payments. D) All of the above. Show Answer Correct Answer: D) All of the above. 10. Confirmation that requires an answer whether the confirmed receivable balance is correct or not is called..... A) Non-relevant confirmation. B) Negative confirmation. C) Positive confirmation. D) Relevant confirmation. Show Answer Correct Answer: C) Positive confirmation. 11. Audit of banks is an example of ..... A) Statutory audit. B) Balance sheet audit. C) He hears the concurrence. D) All of the above. Show Answer Correct Answer: D) All of the above. 12. Audit is compulsory for A) Sole trader. B) Co-operative Societies. C) Joint Stock Companies. D) Partnership firms. Show Answer Correct Answer: C) Joint Stock Companies. 13. The approach of management auditor should be ..... A) Internal. B) Summary. C) Analytical. D) Brief. Show Answer Correct Answer: C) Analytical. 14. Regarding audit results reports, the Indonesian Government Internal Audit Standards (SAIPI) are regulated in..... A) Implementation Standards. B) Reporting Standards. C) Communication Standards. D) Results Standards. Show Answer Correct Answer: C) Communication Standards. 15. The party who receives the report from the operational audit is A) Third parties (investors and creditors). B) Management of a corporate entity. C) Government. D) Management of the entity concerned. Show Answer Correct Answer: D) Management of the entity concerned. 16. Among the audit procedures that can be used to test the quality of building and construction work are..... A) Inspection. B) Physical examination. C) Prosedur analitis. D) Investigation. Show Answer Correct Answer: B) Physical examination. 17. Statistical sampling methods that are often used by auditors are as follows, except..... A) Sequential. B) Fixed Sample Size. C) Discovery. D) Informal. Show Answer Correct Answer: D) Informal. 18. Auditing standards are different from auditing procedures, and auditing procedures relate to: A) Audit principles. B) Audit considerations. C) Performance measurement. D) Actions to be taken. Show Answer Correct Answer: D) Actions to be taken. 19. The specific objectives of internal auditing include: A) Assisting Board of Management(BOM) and Executives in performing supervisory function for the process of information report. B) Evaluating the effectiveness of risk management and internal control systems, proposing recommendation with BOM and Executives toimprove entity's operations. C) Assessing compliance with related laws and regulations to protect theexistence and reputation of the entity. D) Helping to lift the entity's position by improving risk management andinternal control systems in enterprise. E) All of the above answers. Show Answer Correct Answer: E) All of the above answers. 20. Which one of the following statements regarding the internal check system is correct? A) Have an accurate record of all the business transactions. B) Known the accounting method followed in the business. C) Plan for future audit works. D) Ascertain the profit earning capacity of the business. Show Answer Correct Answer: B) Known the accounting method followed in the business. 21. The following are limitations inherent in every internal control, except..... A) Error in judgment. B) Collusion. C) Neglect by management. D) Board of commissioners and audit committee. Show Answer Correct Answer: D) Board of commissioners and audit committee. 22. Which of the following sections deal with qualifications of the auditor? A) Section 141(1). B) Section 104 (1) and section 224 (2). C) Section 226 (3) and section 226(4). D) Section 224(3) & Sec.224. Show Answer Correct Answer: A) Section 141(1). 23. The audit process is ..... A) Matching assertions to predefined criteria. B) Matching management assertions with audit opinions. C) Matching financial statement assertions with audit standards. D) Matching financial statements with audit opinions. Show Answer Correct Answer: A) Matching assertions to predefined criteria. 24. The Chairperson of the Fund Raiser Committee reported that no profit was realized from the event and therefore did not prepare a written report. Should a written report be prepared? A) Yes. B) No. Show Answer Correct Answer: A) Yes. 25. The auditor prepares the audit report with the help of ..... A) Working papers. B) Audit note book. C) Trial balance. D) None of above. Show Answer Correct Answer: B) Audit note book. 26. The types of audit evidence obtained using check techniques are; A) Testimonial evidence. B) Analytical evidence. C) Documentary evidence. D) Physical evidence. Show Answer Correct Answer: C) Documentary evidence. 27. The Word Standard means A) Error Removing. B) Debugging. C) Error Finding. D) Point of Reference. Show Answer Correct Answer: D) Point of Reference. 28. A misstatement in the financial statements can be considered material if..... A) Influence the decisions of financial report users. B) More than 5% of revenue accounts. C) More than IDR 1 billion. D) Influence government policy. Show Answer Correct Answer: A) Influence the decisions of financial report users. 29. In the third paragraph of the audit report, an auditor states his opinion regarding the fairness of the audited financial statements, in all material respects, which is based on the conformity of the preparation of the financial statements with generally accepted accounting principles. A) SALAH. B) CORRECT. Show Answer Correct Answer: B) CORRECT. 30. When there are two or more errors which exactly counter balance each other are termed ase) A) Error of principle. B) Error of Omission. C) Compensating Errors. D) Error of Commission. Show Answer Correct Answer: C) Compensating Errors. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesAuditing Quiz 1Auditing Quiz 2Auditing Quiz 3Auditing Quiz 4Auditing Quiz 5Auditing Quiz 6Auditing Quiz 7Auditing Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books