This quiz works best with JavaScript enabled. Home > Finance > Accounting > Auditing > Auditing – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Auditing Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When an auditor reviews additions to the equipment (fixed asset) account to make sure that fixed assets are not overstated, she wants to obtain evidence as to management's assertion regarding A) Completeness. B) Existence. C) Valuation and allocation. D) Rights and obligations. E) Occurrence. Show Answer Correct Answer: B) Existence. 2. The final stage in the audit process is..... A) Prepare audit summaries. B) Prepare audit performance reports. C) Prepare audit reports. D) Prepare audit evaluation. Show Answer Correct Answer: C) Prepare audit reports. 3. A professional who has the duty to ensure that a financial report is presented fairly in all material respects is called..... A) External auditor. B) Internal accountant. C) Auditor internal. D) Professional Accountant. Show Answer Correct Answer: A) External auditor. 4. Latin word 'audire' means A) To dare. B) To hear. C) To adjust. D) To here. Show Answer Correct Answer: B) To hear. 5. KAP is an auditor whose job is to carry out audits of state finances in government agencies, namely..... A) SALAH. B) CORRECT. Show Answer Correct Answer: A) SALAH. 6. Which of the following is the most appropriate definition of the external audit? A) The external audit is an exercise carried out by auditors in order to give an opinion on whether the financial statements of a company are materially misstated. B) The external audit is an exercise carried out in order to give an opinion on the effectiveness of a company's internal control system. C) The external audit is performed by management to identify areas of deficiency within a company and to make recommendations to mitigate those deficiencies. D) The external audit provides negative assurance on the truth and fairness of a company's financial statements. Show Answer Correct Answer: A) The external audit is an exercise carried out by auditors in order to give an opinion on whether the financial statements of a company are materially misstated. 7. Translate:Reconsidering Opportunities for Fraud A) Reviewing the opportunities for fraud. B) Judgements will be challenged. C) Reviewing safeguarding assets. D) To provide impartial audit review. Show Answer Correct Answer: A) Reviewing the opportunities for fraud. 8. Audit means..... A) Recording business transactions. B) Preparing the final accounts. C) Examination of books, accounts, vouchers etc. D) None of above. Show Answer Correct Answer: C) Examination of books, accounts, vouchers etc. 9. What is the difference between modern and traditional audit functions? A) -Traditional audit function:Confirmation & assurance (in the past andpresent)-Modern audit function:Recommendation & consultation (in the future). B) -Traditional audit function:Recommendation & consultation (in the future).-Modern audit function:Confirmation & assurance (in the past andpresent). C) There is no difference. D) -Traditional audit function:Recommendation-Modern audit function:Confirmation. Show Answer Correct Answer: A) -Traditional audit function:Confirmation & assurance (in the past andpresent)-Modern audit function:Recommendation & consultation (in the future). 10. This type of corroborating evidence can be obtained from an inspection because of its existence. Generally, this evidence is very reliable, but it is possible that the auditor who collects the evidence is unable to determine the quality, condition or value of the evidence, so it is not uncommon for a specialist to be needed. What type of evidence is meant? A) Question and answer. B) Inspection. C) Physical evidence. D) Bukti documents. Show Answer Correct Answer: C) Physical evidence. 11. Financial reports that have been audited by an independent auditor are called: A) Audited financial statement. B) Unaudited financial statements. C) All true. D) None of above. Show Answer Correct Answer: A) Audited financial statement. 12. In carrying out their responsibilities as professionals, each member must always use moral and professional considerations in all activities they carry out. This explanation is in accordance with IAI's ethical principles, namely..... A) Public interest. B) Objectivity. C) Professional responsibility. D) Integrity. Show Answer Correct Answer: C) Professional responsibility. 13. The following are not part of audit procedures that can be used to obtain audit evidence. A) Physical examination. B) Investigation. C) Inspection. D) Observation. Show Answer Correct Answer: B) Investigation. 14. An ..... checks whether overall approach to health and safety is delivering the results you want A) Audit. B) Performances. C) Risk Profiling. D) Control measures. Show Answer Correct Answer: A) Audit. 15. Which of the following factors does not create a demand for external audit services? A) Potential bias by management in providing information. B) Requirement of the regulation. C) Complexity of the accounting processing systems. D) Remoteness between a user and the organisation. Show Answer Correct Answer: B) Requirement of the regulation. 16. Which statement is true regarding illegal actions committed by clients? A) The auditor's responsibility to detect legal violations that have a direct and material impact on the financial statements is the same as the responsibility for errors and fraud. B) An audit in accordance with generally accepted auditing standards generally includes audit procedures specifically designed to detect unlawful acts that have an indirect but material impact on the financial statements. C) Auditors view unlawful acts more from the perspective of the reliability of management's presentation rather than in relation to audit objectives derived from financial statement assertions. D) The auditor is not responsible for detecting unlawful actions committed by clients that have an indirect impact on the financial statements. Show Answer Correct Answer: A) The auditor's responsibility to detect legal violations that have a direct and material impact on the financial statements is the same as the responsibility for errors and fraud. 17. The beneficiary (s) of audit report is/are ..... A) Creditor. B) Income tax authority. C) Government. D) All the above. Show Answer Correct Answer: D) All the above. 18. The thing that is the basis of the accounting profession, where the auditor will be neutral towards the entity and will be objective, is the meaning of..... A) Auditor professionalism. B) Auditor risk. C) Auditor independence. D) Auditor's responsibilities. Show Answer Correct Answer: C) Auditor independence. 19. Type of Assurance Services: A) 1. Audit 2. Internal Control over Financial Reporting 3. Review 4. Information Technology 5. Other. B) 1. Audit 2. Internal Control over Financial Reporting 3. Review 4. Information Technology. C) 1. Internal Control over Financial Reporting 2. Review 3. Information Technology. D) None of above. Show Answer Correct Answer: A) 1. Audit 2. Internal Control over Financial Reporting 3. Review 4. Information Technology 5. Other. 20. One of the stages in the strategic system for understanding the client's business and business fields, except..... A) Client's business field. B) Client environment. C) Client financial reports. D) Measurement and performance. Show Answer Correct Answer: C) Client financial reports. 21. When is evidential matter, generally, considered sufficient? A) When it constitutes entire population. B) When it is enough to provide a basis for giving reasonable assurance regarding truthfulness. C) When it is objective and relevant. D) When auditor collects and evaluates it independently. Show Answer Correct Answer: B) When it is enough to provide a basis for giving reasonable assurance regarding truthfulness. 22. Balance sheet audit included verification of ..... A) Assets. B) Liabilities. C) Income and expenditure accounts where appropriate. D) All of the above. Show Answer Correct Answer: D) All of the above. 23. Auditor do the valuation of assets A) True. B) False. C) None. D) None of above. Show Answer Correct Answer: B) False. 24. Independent audit firms only conduct audit financial statements.Is this statement true or false? A) False. B) True. Show Answer Correct Answer: A) False. 25. The auditor must consider the level of reliability and type of evidence to be collected in accordance with the objectives and scope of the audit as follows, except testimonial evidence A) CORRECT. B) SALAH. Show Answer Correct Answer: B) SALAH. 26. Which of the following methods is not a method used by auditors to collect information on the internal controls that apply in the client company..... A) Standard internal control questionnaire. B) Written description. C) Flow chart. D) Tests of controls. Show Answer Correct Answer: D) Tests of controls. 27. Is the Recordress required to tum over to the Audit Committee as part of her records, all committee reports handling funds? A) Yes. B) No. Show Answer Correct Answer: A) Yes. 28. 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. 29. 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. 30. What is not a core role of an internal auditor is: A) Evaluate the risk management process. B) Provides assurance that risks have been properly evaluated. C) Coordinate ERM activities. D) Providing guarantees in the risk management process. Show Answer Correct Answer: D) Providing guarantees in the risk management process. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesAuditing Quiz 1Auditing Quiz 3Auditing Quiz 4Auditing Quiz 5Auditing Quiz 6Auditing Quiz 7Auditing Quiz 8Auditing Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books