This quiz works best with JavaScript enabled. Home > Finance > Accounting > Auditing > Auditing – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Auditing Quiz 8 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Inventory costs must be calculated using the first-in, first-out cost formula, which is called..... A) LIFO. B) AVERAGE. C) First In. D) FIFO. Show Answer Correct Answer: D) FIFO. 2. ..... auditors work with government departments or private businesses, checking for mismanagement of funds and findinf ways to eliminate waste and fraud. A) Public. B) Independent. C) Internal. D) External. Show Answer Correct Answer: C) Internal. 3. The types of internal audit assignments consist of two classifications, namely; A) Audit & Assistance. B) Regular & Comprehensive. C) Assurance & Consulting. D) Interim & Post. Show Answer Correct Answer: C) Assurance & Consulting. 4. In accordance with professional ethical standards, an auditor is said to be independent in which respect? A) The auditor's checking account, which is fully insured by the federal government, is held within the client's financial institution. B) Auditors also act as legal advisors who provide general advice to clients. C) An auditor employee becomes a volunteer treasurer for a charitable organization that is a client. D) The client has not paid remuneration to the auditor or in other words owes remuneration to the auditor for two consecutive audit years. Show Answer Correct Answer: B) Auditors also act as legal advisors who provide general advice to clients. 5. The risk of detection 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) The risk that 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: C) Risk resulting from the auditor not being able to detect material misstatements contained in an assertion. 6. Find a synonym to the word "disruptive": A) Troublemaking. B) Vital. C) Subjective. D) Enable. Show Answer Correct Answer: A) Troublemaking. 7. Testimonial evidence is evidence that can be obtained from statements which are usually answers to questions, and are rational. This evidence can also be obtained from statements which are usually answers to questions A) SALAH. B) CORRECT. Show Answer Correct Answer: B) CORRECT. 8. How should the office establish a policy on ethics? A) Require auditors to confirm their independence in an annual letter. B) There is a random inspection of compliance with the office's policy regarding ethics. C) There is communication about ethics through training and seminars. D) All correct. Show Answer Correct Answer: D) All correct. 9. Management audit is done by A) Charted accountant. B) Managers. C) Any qualified person. D) Company secretary. Show Answer Correct Answer: C) Any qualified person. 10. The sole responsibility of management with regard to financial reporting involves preparing and presenting financial statements in accordance with the applicable financial reporting framework. A) False. B) True. Show Answer Correct Answer: B) True. 11. Taking action on lessons learned from accidents and incidents occurs on which pdca cycle A) Do. B) Check. C) Plan. D) Act. Show Answer Correct Answer: D) Act. 12. The following are types of audits, except A) Assertion Audit. B) Management Audit. C) Compliance Audit. D) Financial Report Audit. Show Answer Correct Answer: A) Assertion Audit. 13. This is a kind of audit which is conducted in between two annual audit A) Interim audit. B) Final audit. C) Internal audit. D) Continuous audit. Show Answer Correct Answer: A) Interim audit. 14. Which indicates an inherent limitation of a financial statement audit? A) Auditors are expected to discover material fraud in every audit. B) Auditors are expected to be independent of clients. C) Auditors are expected to be able to evaluate appropriate accounting estimates. D) Management is responsible for financial reports. Show Answer Correct Answer: B) Auditors are expected to be independent of clients. 15. Auditors can at least use an understanding of the business and industry to..... A) Make decisions about the extent of audit procedures. B) Focuses attention on the market for the entity's products or services. C) Evaluate a company's capacity to generate revenue. D) Determine the nature of capital production that may emerge. Show Answer Correct Answer: A) Make decisions about the extent of audit procedures. 16. It is important to carry out an audit because..... A) There is the potential for errors or irregularities in the audit object. B) There must be fraud in the audit object. C) There is a material misstatement in the financial statements. D) An error occurred in preparing the financial report. Show Answer Correct Answer: A) There is the potential for errors or irregularities in the audit object. 17. The level of assurance provided by an external audit is absolute.Is this statement true or false? A) False. B) True. Show Answer Correct Answer: A) False. 18. All long-term debt that should have been recorded has been recorded. This is an application of the assertion..... A) Classification. B) Completeness (completeness). C) Hak dan kewajiban (rights and obligations ). D) Accuracy, valuation, and allocation (accuracy, valuation, and allocation). Show Answer Correct Answer: B) Completeness (completeness). 19. A lower level audit that does not require a lot of evidence which is usually carried out in non-public companies and takes the form of a limited review is known as..... A) Review. B) Audit. C) Other attestation services. D) Accounting and Bookkeeping Services. Show Answer Correct Answer: A) Review. 20. Recording a transaction twice in the books of original entry is an error of ..... A) Principle. B) Commission. C) Duplication. D) None of above. Show Answer Correct Answer: C) Duplication. 21. The majority of the members of audit committee should be executive directors of the company or related company. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 22. Under section 146 of the companies act 2013, an auditor has a right to attend any general meeting A) By himself or authorized representative who is not qualified. B) By himself or authorized representative who is qualified. C) By himself only. D) Auditor has no duty to attend any general meeting. Show Answer Correct Answer: B) By himself or authorized representative who is qualified. 23. An auditor in a casual vacancy is appointed by the ..... A) Board of Directors. B) Company Law board. C) Shareholders. D) Central Government. Show Answer Correct Answer: A) Board of Directors. 24. The main functions of auditors are: A) Audit function. B) Attestation function. C) All True. D) None of above. Show Answer Correct Answer: C) All True. 25. Primary object of auditing is to A) Detect fraud. B) Detect error. C) Prevent fraud and error. D) Verify accounts and statements. Show Answer Correct Answer: D) Verify accounts and statements. 26. In observing the physical inventory count, the auditor performs..... A) Test terhadap inventory pricing dan inventory count. B) Physical inventory count together with clients. C) Testing the results of physical calculations carried out by clients. D) Calculation of client inventories, both those stored in warehouses and those in external warehouses. Show Answer Correct Answer: B) Physical inventory count together with clients. 27. When issuing an audit report, the auditor must believe that his opinion is correct, so to support this belief, it must be equipped with..... A) Accuracy of audit reports. B) Audit evidence. C) Program audit. D) Audit opinion. Show Answer Correct Answer: B) Audit evidence. 28. The report through which an auditor expresses his opinion on financial statements is known as A) Management report. B) Cash report. C) Audit report. D) Statutory report. Show Answer Correct Answer: C) Audit report. 29. The following are not part of an audit of the balance sheet, namely: A) Cash audit, investment of financial assets. B) Audit of receivables, fixed assets. C) Audit of fund liabilities and Equity. D) Income and expenditure audit. Show Answer Correct Answer: D) Income and expenditure audit. 30. Which of the following internal audit assignments is described below?The examination of the economy, efficiency, and effectiveness of activities and processes A) Value for money audit. B) IT audit. C) Financial audit. D) Regulatory compliance audit. Show Answer Correct Answer: A) Value for money audit. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesAuditing Quiz 1Auditing Quiz 2Auditing Quiz 3Auditing Quiz 4Auditing Quiz 5Auditing Quiz 6Auditing Quiz 7Auditing Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books