This quiz works best with JavaScript enabled. Home > Finance > Accounting > Auditing > Auditing – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Auditing Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The auditor's opinion that the financial statements present fairly, in all material respects, the financial position, results of operations and cash flows of a particular entity in accordance with generally accepted accounting principles in Indonesia, except for the impact of matters relating to the excluded is an opinion. ..... A) Improper opinion. B) Reasonable without exception. C) Reasonable with exceptions. D) The statement does not provide an opinion. Show Answer Correct Answer: C) Reasonable with exceptions. 2. Concurrent audit is a part of A) Internal check system. B) Continuous audit. C) Internal audit system. D) None of these. Show Answer Correct Answer: C) Internal audit system. 3. Internal audit function, except..... A) Internal control management. B) Governance. C) Review of operational activities. D) Monitoring Internal control. Show Answer Correct Answer: A) Internal control management. 4. Who is responsible for monitoring the Budget vs. Expenses? A) Budget & Finance. B) Treasurer. C) Recordress. D) Ways and Means. Show Answer Correct Answer: A) Budget & Finance. 5. The liability of auditor can be A) Only civil. B) Only criminal. C) Either civil and criminal. D) Civil and /or criminal. Show Answer Correct Answer: D) Civil and /or criminal. 6. The client informs the auditor that the auditor will be changed if the auditor expresses an opinion that is not in the client's favor. What are the obstacles? A) Intimate. B) Self-interest. C) Have you ever searched?. D) Threaten. Show Answer Correct Answer: D) Threaten. 7. Which of the following is the disadvantage of auditing A) No Qualitative aspects are considered. B) Postmortem of accounts. C) Both of the above. D) None of the above. Show Answer Correct Answer: C) Both of the above. 8. The auditor's report contains the following meanings, the one that is inaccurate is..... A) Formal means or media are important at the end of the audit. B) Income statement, balance sheet, cash flow statement. C) A report containing a statement of the auditor's opinion. D) Reports are addressed to interested parties. Show Answer Correct Answer: B) Income statement, balance sheet, cash flow statement. 9. Which of the following services can be classified as attestation services? A) Financial report audit. B) Reviews that provide negative confidence in financial statements. C) Prospective examination of financial information. D) All of the above are Web attestation services. Show Answer Correct Answer: D) All of the above are Web attestation services. 10. Fixed Assets have existence, often Fixed Assets are called Tangible Fixed Assets. the following that are not included in it are..... A) Land and land filling. B) Buildings and building repairs. C) Vehicle for sale. D) Building an office. Show Answer Correct Answer: C) Vehicle for sale. 11. Internal Auditor is appointed by the A) Institute of Internal Auditors of India. B) Statutory Auditor. C) Shareholders of the company. D) Board of Directors of the company. Show Answer Correct Answer: D) Board of Directors of the company. 12. Which is correct about internal audit? A) Internal audit organization plays role as manageable tool of top of management in the enterprise. B) It serves for governance activity of firm itself, particularly the elements of assurance, risk, and control. C) Internal audit organization may carry out performance audit, compliance audit, and financial statement audit. D) All of the above answers. Show Answer Correct Answer: D) All of the above answers. 13. Two managers were charged with ..... $ 400, 000 over a ten-year period. A) Integrity. B) Embezzling. C) Misstatement. D) Payroll. Show Answer Correct Answer: B) Embezzling. 14. The objectives of the audit of the receivables section are as follows except A) Registered receivables are legal claims and belong to the company. B) All company invoices have been recorded completely and accurately within cut-off limits. C) Receivables have been appropriately classified. D) Is an uncollectible debt. Show Answer Correct Answer: D) Is an uncollectible debt. 15. The first auditors of a company are appointed by the A) Registrar of Companies. B) Promoters of the Company. C) Shareholders of the Company. D) Board of Directors of the Company. Show Answer Correct Answer: D) Board of Directors of the Company. 16. The following that do not include steps in understanding and assessing operational risk are ..... A) Carry out testing of the costs and benefits of internal control. B) Carry out substantive testing. C) Design, perform, and evaluate tests of controls. D) Assess control risk. Show Answer Correct Answer: A) Carry out testing of the costs and benefits of internal control. 17. In examining financial statements, auditors need several physical evidence including..... A) Intangible assets, other assets, and capital. B) Long-term debt and capital. C) Cash, Securities, Inventory and Fixed Assets. D) Receivables and Payables. Show Answer Correct Answer: C) Cash, Securities, Inventory and Fixed Assets. 18. Cutoff tests designed to detect valid sales that occurred before the end of the year but have been recorded in the subsequent year would provide assurance about management's assertion of A) Presentation and disclosure. B) Completeness. C) Rights and obligations. D) Existence. Show Answer Correct Answer: B) Completeness. 19. Auditors calculate various financial ratios of client companies to compare them with the same financial ratios of similar companies in the industry and the same financial ratios of client companies from previous years. In this case the auditor does..... A) Substantive testing. B) Tests of controls. C) Analytical testing. D) Test of control. Show Answer Correct Answer: C) Analytical testing. 20. The level of assurance provided by an external audit is absolute. A) True. B) False. Show Answer Correct Answer: B) False. 21. Statements regarding inconsistencies in the application of generally accepted accounting principles are contained in the standard..... A) W. One one. B) B. Field work. C) D. Examination of Financial Reports. D) A. Reporting. Show Answer Correct Answer: D) A. Reporting. 22. Companies with effective corporate governance are more risky to audit. A) True. B) False. Show Answer Correct Answer: B) False. 23. Example of vouchers A) Cash memo. B) Bank pay in slip. C) Both A and B. D) Only A. Show Answer Correct Answer: C) Both A and B. 24. Which of these statements is false A) Detection and prevention of errors and fraud are secondary objectives. B) The objectives of accounting can be classified into two parts. C) Primary objectives are also called contingency objectives. D) The primary purpose of auditors is report to owners. Show Answer Correct Answer: C) Primary objectives are also called contingency objectives. 25. In collecting information to understand the internal control that applies within the client's company, the auditor is primarily interested in internal control whose objectives, except..... A) Compliance with applicable laws and regulations. B) Effectiveness and efficiency of operations. C) Reliability of financial reporting. D) Prevention of collusion. Show Answer Correct Answer: D) Prevention of collusion. 26. What is the first stage of energy audit. A) Preparation. B) Report. C) Checking. D) Survey. Show Answer Correct Answer: A) Preparation. 27. Audit is a fact finding process that compares actual results with A) Specified Standards and plans. B) Expected results. C) Premature results. D) Preliminary results. Show Answer Correct Answer: A) Specified Standards and plans. 28. The purpose of an audit is to test management's assertions in the financial statements, except..... A) Rights and obligations. B) Valuation or allocation. C) Client business plan. D) Existence or existence. Show Answer Correct Answer: C) Client business plan. 29. Main Object of Audit is A) Detection and Prevention of Errors. B) Detection of Frauds. C) Detection and Prevention of Errors and Frauds. D) To find out whether P/L Account and B/S exhibit true and fair view of state of affairs. Show Answer Correct Answer: D) To find out whether P/L Account and B/S exhibit true and fair view of state of affairs. 30. When there is a request for confirmation from a client who does not provide an answer, the confirmation code is A) CB. B) NR. C) RPO. D) PBC. Show Answer Correct Answer: B) NR. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesAuditing Quiz 1Auditing Quiz 2Auditing Quiz 3Auditing Quiz 4Auditing Quiz 5Auditing Quiz 6Auditing Quiz 8Auditing Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books