Quizr: Auditing Quiz, MCQs

Auditing Quiz, MCQs

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Accounting, Banking and Finance MCQs

Auditing

Quiz # 1, MCQs

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1)

During audit of the financial statements, the auditors are concerned with the verification and determination of which one of the following items?
- A) Statements, accuracy, and feasibility
- B) Date, accuracy, and reliability
- C) Policies, value, and reliability
- D) Cycle, policies, and reliability
Right Answer is the option "B"

2)

The phrase (Scope of an Audit) refers to which one of the followings?
- A) Engagement letters
- B) Audit procedures
- C) Audit evidence
- D) Reasonable assurance
Right Answer is the option "B"

3)

The factors that affect reasonable assurance include all of the following EXCEP:
- A) Use of testing (Sampling)
- B) Interest limitations of accounting and internal control
- C) Remuneration of the auditor
- D) Persuasive nature of audit evidence
Right Answer is the option "D"

4)

A well designed Internal Control Questionnaire (ICQ) should incorporate the following EXCEPT:
- A) Be a sufficient source of data for the evaluation of internal controls
- B) Identity the internal control system's strengths and weaknesses
- C) Be organized by individual functional organizations
- D) Should include simple yes or no responses but no narrative responses
Right Answer is the option "D"

5)

Which one of the following is FALSE about Internal Control Evaluation Checklists (ICEC)?
- A) ICEC is developed to overcome the shortcomings of Internal Control Questionnaire
- B) The rules of constructing ICEC is different than construction of Internal Control Questionnaire
- C) It is designed to determine, whether desirable internal controls are present
- D) It is normally employed where system's information has already been recorded
Right Answer is the option "D"

6)

An auditor's flow chart of an entity's information system is a diagrammatic representation. It depicts what kind of information?
- A) Program for tests of control
- B) Understanding of the system
- C) Understanding of the types of irregularity that are probable given by the present system
- D) Documentation of the study and evaluation of the system
Right Answer is the option "D"

7)

Which one of the following is NOT a factor included in the control environment of an entity?
- A) Integrity and ethical values
- B) Risk assessment
- C) Commitment to competence
- D) Organization structure
Right Answer is the option "D"

8)

The audit which is a review of any part of an entity's operating procedures and methods is known as:
- A) Financial statement audits
- B) Operational audits
- C) Technical Audits
- D) Compliance audits
Right Answer is the option "B"

9)

Analytical procedures used in planning an audit should focus on identifying which one of the followings?
- A) Areas that may represent specific risks relevant to the audit
- B) Material weaknesses in the internal control structure
- C) The predictability of financial data form individual transactions
- D) The various assertions that are embodied in the financial report
Right Answer is the option "C"

10)

Which one of the following is an objective of the internal audit?
- A) To report on financial statements
- B) To check accounting system and internal control are operating efficiently
- C) To determine the accuracy of financial statement values and disclosures
- D) To establish a control system in the company
Right Answer is the option "C"