1.Mr. Ibrahim, the auditor of Good Luck Constructions Company checks if the laptops and trucks included in the financial statements of the company actually belongs to the company and not to the shareholders. Which one of the following category of assertion is Mr. Ibrahim checking by doing so?

Presentation and Disclosure assertion

Completeness assertion

Understandability assertion

Rights and obligation assertion

2. Non-compliance includes all of the following EXCEPT:

Inclusion of personal travel expenditure bills of the chief executive officer in the financial statements

Breach of environmental regulations imposed by the regulatory authorities

Personal misconduct by the director of the company

Non-disclosure of significant accounting policies

3.Which one of the following audit opinion will be given by the auditor if the financial statements given do not fairly represent the organizations financial statement?

Qualified Opinion

Adverse Opinion

Unqualified Opinion

Disclaimer of Opinion

4.The type of audit that gives confidence in the integrity of corporate reporting for the benefit of stakeholders and society as a whole is known as:

Value for money audit

Public sector audit

Internal audit

External audit

5.Auditors often test a companys internal controls by reviewing operational information- Testing internal controls as a rule relate to:

The companys human resources department

The companys production department

The companys financial accounting department

The companys research and development department

6.Which one of the following is a technique of collecting audit evidence?

Authorization

Exposure

Replication

Computation

7.The letter sent by the auditor to the client setting out his or her duties and responsibilities is known as:

Appointment letter

Job letter

Engagement letter

Audit letter

8.The type of substantive test that focuses on the reasonableness of relationships between the accounting data and also identifies unusual fluctuations for investigation is known as:

Tests of controls

Tests of procedures

Assessment procedures

Analytical procedures

9.You are the auditor of Sunshine Resorts. Mr. John is the newly joined audit clerk in your team. Help him in identifying from the following which one of the following is NOT the three conditions requiring a departure from an unqualified opinion?

auditor is not independent

The financial statements have not been prepared in accordance with generally accepted accounting principles (GAAP)

The auditor is independent

The scope of the audit has been restricted

10. Gulf Electronics is a newly established company. The management of the company drafts the policies and procedures manual which addresses its significant activities and unique issues relevant to the organization. It makes out the administrative manual, employee handbook, purchase procedure and stock requisition manual, etc. All these activities relate to which of the following component of the internal control system?

Monitoring activities

Control activities

Control environment

Risk Assessment

11.An auditor includes a separated paragraph to give which one of the following type of audit opinion?

Unqualified Opinion

Disclaimer of Opinion

Qualified Opinion

Adverse Opinion

12.

Which of the following statement is or are true about auditing?

i) Auditing is carried out by an external person or independent agency and the auditor submits the report to the shareholders

ii) Auditing is basically a periodic process and carried out after the preparation of final accounts and financial statements,

usually on yearly basis Only statement (i)None of the statementsOnly statement (ii)Both the statements

13.Mr. Richard is the auditor of Gulf Logistics Company for the year 2020. He is in the process of obtaining audit evidences to support the financial statement assertions. In the Balance sheet of the company it is stated that the company owns 25 container trucks, 25 big trucks, 50 small trucks and 5 cars. Mr. Richard wanted to know if the company really owned all these vehicles and so he started collecting evidences by following various techniques like inspection, confirmation and enquiry. You are required to identify from the following, the correct audit objective that Mr. Richard is trying to achieve in the above mentioned situation?

Classification

Completeness

Ownership

Disclosure

14.In which one of the following circumstances is the improper description of accounting policies and practices or non-compliance of legal and regulatory requirements or qualitative misstatements or quantitative misstatements may be considered as material?

If the accountants conceal the information using his expertise

If they influence the decision of users

If it can be detected by the another auditor

If they are ignored by the decision of users

15.Mr. Khalid is the auditor of Gulf Shipping Corporation for the year 2020. In the section Auditors Responsibilities for the Audit of the Financial Statements in the audit report, he will be including all of the following in the section EXCEPT:

Evaluate the overall presentation, structure and content of the financial statements

Sufficient appropriate audit evidence has been obtained

The financial statements, including the disclosures, give a true and fair view

The address of auditor along with the name of city

16.Mr. Zahir, the auditor of Tasty Confectionaries Company checks if the company has separated the salaries of office staff and recorded it as an administrative expense and wages related to the product department are recorded as a production expense in the accounting records. Which one of the following audit objective is Mr. Zahir attempting to achieve by checking this?

Validity objective

Cut off objective

Disclosure objective

Classification objective

17.The inclusion of transactions to correct accounts and assurance that those accounts are properly presented in the financial statements is ensured by:

Completeness objective

Accuracy objective

Classification objective

Disclosure objective

18.The premise that SA 200 explains relates to:

The responsibilities of management to prepare the financial statements according to SA

The responsibilities of auditor to give opinion about the financial statements

The responsibilities of internal auditor to the financial statements according to SA

The responsibilities of shareholders to the financial statements

19.You are the auditor of Al Arab Construction Company. According to you, which one of the following is the material misstatement in the financial statements of the company for the year 2020?

Depreciation of the company for the year was stated as OMR 12000 but the actual deprecation was OMR 6500

Wages paid to the security guard of the company in the month July, 2020 was wrongly stated as OMR 320 which was actually OMR 350

Office maintenance expenses for the month June 2020 was wrongly stated as OMR 3500 instead of OMR 3550

Stationary purchased for the month June, 2020 was OMR 470 but it was mentioned in the accounting records as OMR 490

20.Which one of the following is NOT considered as material to influence the decision of the users of financial statements?

Noncompliance of legal and regulatory requirements

Quantitative misstatements

Improper description of accounting policies

Insufficient information about the employee satisfaction

21.The auditors report shall be dated not earlier than:

The date on which accounts are approved by the management

The date on which auditor commenced the audit

The date on which accounts are prepared by the management

The date on which the management submitted the accounts for audit

Which one of the following is a type of audit opinion?

Expert Opinion

Adjourned Opinion

Disclosure Opinion

Qualified Opinion

23.In obtaining audit evidence to support the financial statement assertions, the auditor develops specific audit objectives relating to each assertions. The completeness objective is related to which of the following assertion?

Understandability assertion

Existence and occurrence assertion

Accuracy assertion

Completeness assertion

24.You are appointed as an auditor of SRS Cement Company. Which one of the following you are NOT required to do as an auditor of the company?

Confirm that the financial statements are prepared in accordance with the relevant accounting standards

Examine the details about employee morale and satisfaction

Obtain reasonable assurance as to whether the financial statements present a true and fair

Evaluate the trustworthiness and satisfactoriness of the information contained in the underlying accounting records

25.The auditor's report should include all of the following basic elements EXCEPT:

Auditor's responsibility

Introductory paragraph

Managements' responsibility for the financial statement

Characteristics of audit