subject: AUDIT REPORTING

ANSWER THESE MCQ

1.Audit report is issued to.

(1 Point)

Management

Shareholders

Employees of the company

Auditor

2.In audit GRN stands for

(1 Point)

Global Recruiters Network

Goods Received Note

Global Reference Network

Gospel Recordings Network

3.A ___________ test to check whether systems are reliable or not

Analytical Review

Compliance Test

Substantive test

Covid-19

4.To check whether purchase orders have been issued after taking quotations from the approved vendor , is

(1 Point)

Compliance test

Substantive test

Analytical review

Risk Analysis

5._________________________ are the owners of audit working papers

Shareholders of the company

Auditors

Management

Creditors

6.A ___________ test to detect the material misstatements in the financial statements

Analytical Review

Compliance Test

Substantive test

Covid-19

7.Auditor's tendency not to believe the management assertions is called

(1 Point)

Compliance Test

Substantive test

Professional Skepticism

None of the above

8.International Financial Reporting Standards (IFRSs) are issued by

IASB

IAASB

IASC

SAC

9._________________ should be independent

(1 Point)

External auditor

Internal auditor

Operational auditor

Board of directors

10.Audit evidence only required during

Compliance test

Substantive test

At both levels

Not confirmed

11.If systems are reliable then we draw

(1 Point)

Small sample size

Large sample size

12._________________ is a system to detect the fraud and errors

Internal Control System

Accounting system

IT system

Management System

13.Audit fee may be mentioned in

an engagement letter

a letter of weakness

an audit report

a management representation

14.Which of the following is not true of working papers?

(1 Point)

They assist in review of the audit work.

They are a direct aid in the planning of the audit.

They provide proof of the correctness of the financial statements.

They record the audit evidence to provide support for the auditors opinion.

15.___________________ is the risk that financial statements are materially incorrect, even though the audit opinion states that the financial reports are free of any material misstatements.

Operational Risk

Financial Risk

Financial Statement Risk

Audit Risk

None of the above

16.Certificate of incorporation will be put in

(1 Point)

Permanent audit file

Current Audit file

17.Shall not use information for any personal gain or in any manner that would be contrary to the law or detrimental to the legitimate and ethical objectives of the organization.

Integrity

Objectivity

Competency

Confidentiality

18.Shall perform their work with honesty, diligence, and responsibility

(1 Point)

Integrity

Objectivity

Competency

Confidentiality

19.In _______________ auditor does not go for compliance test

(1 Point)

Systematic audit Approach

Direct verification approach

Risk based approach

Balance Sheet approach

20.___________________an auditing procedure based on ratios among accounts and tries to identify significant changes.

Authorization

Supervision

Analytical Review

Observation

21.Internaltional Standards on Auditing (ISAs) are issued by

IASB

IAASB

IASC

SAC

22.Working papers are the property of

Management

Shareholders

Employees of the company

Auditors

23.Which of the following is NOT an accepted means of obtaining audit evidence?

(1 Point)

Inspection

Enquiry

Analytical procedures

Estimates

24.Audit report is signed by

Auditors who conducts the audit

Audit Manager

Principal

Senior Auditor

25.If systems are not reliable then we draw

(1 Point)

Small sample size

Large sample size

26.Audit Report is issued

(1 Point)

Before audit

During audit

At the end of audit

At any time during the audit

27.Financial audit can not be conducted without

Analytical Review

Compliance Test

Substantive test

Covid-19

28.Accounting and Internal Control system have the same functions

True

False

29.Risk of material misstatement is also known as.

(1 Point)

Operational Risk

Financial Risk

Financial Statement Risk

Audit Risk

None of the above

30.I have observed that UCP guards duty frequently changed

(1 Point)

This a segregation of duties

Rotation of duties

Supervision of duties

Observation of duties

31.Which of the following are you unlikely to see in the current file of auditors working papers?

(1 Point)

Memorandum & articles of association

Audit planning memorandum

Summary of unadjusted errors

Details of the work done on the inventory count

32.In _______________ substantive test based on the reliability of the internal control and accounting system

Systematic audit Approach

Direct verification approach

Risk based approach

Balance Sheet approach

33.Shall engage only in those services for which they have the necessary knowledge, skills, and experience

(1 Point)

Integrity

Objectivity

Competency

Confidentiality

34.Letter of weaknesses is issued to

Management

Shareholders

Employees of the company

Creditors of the company

35.Stock taking is ____________________ process

(1 Point)

Authorization

Supervision

Analytical Review

Observation

36.Which of the following is NOT an internal control

(1 Point)

Authorising purchase orders

Ensuring cash is locked away

Performing external confirmation of receivables

The opening of the post should not be the same person who banks the cheques

37.___________________________is a process that involves a manager meeting regularly and interacting with worker(s) to review their work.

Authorization

Supervision

Analytical Review

Observation

38.__________________refers to information or data that use or collect by auditors as part their audit works to conclude their opinion on whether or not financial statements

(1 Point)

Compliance Test

Substantive test

Analytical review

Audit Evidence

39.__________________is the risk that financial statements may be materially misstated prior to audit.

(1 Point)

Operational Risk

Financial Risk

Financial Statement Risk

Audit Risk

None of the above

40.Financial Statements are found in

Permanent audit file

Current Audit file

41.______________ test to detect the material misstatements in the financial statements and focused on the amounts.

(1 Point)

Compliance test

Substantive test

Analytical review

Risk Analysis

42.Engagement letter is issued

(1 Point)

Before audit

During audit

At the end of audit

At any time during the audit

43.Shall not accept anything that may impair or be presumed to impair their professional judgment.

(1 Point)

Independency

Objectivity

Competency

Confidentiality