Q6.....

It is important for an auditor to involve the key engagement members in the planning process because I. Their experience and insights are important II. It eliminates the risk of the audit engagement III. It improves the efficiency and effectiveness of planning process

a.

Only I and III are true

b.

All are true

c.

Only I and II are true

d.

Only II and III are true

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Q7......

Arrange the following sources of information for evidence according to the preference (Most preferred to least). I. Accounting Records II. Quality Control Procedures III. Audit procedure

a.

III, II, I

b.

II, I, III

c.

I, II and III

d.

III, I, II

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Q8....

Management of an entity makes its judgement on ability to continue as a going concern. The relevant factors for such judgement is/are

a.

The degree to which an entity is affected due to external factors

b.

All these

c.

The nature and conditions of business

d.

The degree of uncertainty associated with the outcome of an event or condition

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Q9........

One of the following is not a condition for a person being referred to as "Experienced Auditor"

a.

Practical experience in auditing

b.

Understanding the business environment of the entity being audited

c.

Understanding on reporting issues in the industry of the audited entity

d.

Previous audit experience with the entity

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Q10..............

An auditor wants to verify the existence of certain assets mentioned in the schedule of assets, in the related notes of financial statements. Which of the following methods is most appropriate?

a.

Re-calculation

b.

Inspection

c.

Re-performance

d.

Observation

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