Auditing MCQs

Correct answer C. Administration overhead

Correct answer D. Accounts Receivable

Correct answer A. Financial information

Correct answer A. Any entity

Correct answer B. 38

Correct answer C. Standard on Quality Control

Correct answer A. Preparation of vouchers

Correct answer B. Obtain the client’s permission to communicate with the existing auditor

Correct answer C. Taking management decisions

Correct answer A. 1, 3 and 4 only

Correct answer A. Self-interest threat

Correct answer C. An auditor may serve on the board of directors of an audit client

Correct answer D. They should be used only when there is a lack of other substantive audit evidence

Correct answer A. Other audit clients

Correct answer C. The gap between the public perception of the role of company auditors and their statutory role and responsibilities

Correct answer D. Involvement of any specialist

Correct answer D. Obtaining and evaluating audit evidence on the financial statements

Correct answer A. Negative assurance

Correct answer A. When a company negotiates a friendly takeover, it usually appoints a firm of accountants to carry out due diligence on the takeover target

Correct answer B. the same firm should review the IFI and the financial statements for the year as a whole.