Auditing MCQs with Answers – Practice Online – Page 6

Question 101 Auditing

An auditor is often compared with which of the following?

Correct answer A. Watch dog

Open question

Question 102 Auditing

What is the main objective of an audit?

Correct answer C. Depends on the type of audit

Open question

Question 103 Auditing

The word ‘audit’ comes from the Latin word “audire”. What does it mean?

Correct answer B. To hear

Open question

Question 104 Auditing

What is a systematic examination of the books and records of a business called?

Correct answer B. Auditing

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Question 105 Introduction to Auditing

Concurrent audit forms part of which system?

Correct answer B. Internal audit system

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Question 106 Introduction to Auditing

Audit in depth is another name for which kind of audit?

Correct answer A. Detailed audit

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Question 107 Introduction to Auditing

In which year was the Institute of Chartered Accountants of Pakistan established?

Correct answer A. 1961

Open question

Question 108 Introduction to Auditing

Which statement about a continuous audit is NOT true?

Correct answer C. It is needed when the organization has a good internal control system

Open question

Question 109 Introduction to Auditing

By whom is internal check carried out?

Correct answer B. Members of the staff

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Question 110 Introduction to Auditing

What kind of errors are errors of omission?

Correct answer B. Technical errors

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Question 111 Introduction to Auditing

What does window dressing imply?

Correct answer A. Overvaluation of assets

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Question 112 Introduction to Auditing

What does test checking refer to?

Correct answer D. Checking of selected number of transactions

Open question

Question 113 Introduction to Auditing

Which statement about materiality is not correct?

Correct answer A. At the planning stage, the auditor considers materiality at the financial statement level only

Open question

Question 114 Introduction to Auditing

Which words complete the statement: the audit risk, the materiality and the audit effort?

Correct answer A. Lower, Higher, Lower

Open question

Question 115 Introduction to Auditing

Before issuing an unqualified opinion, what should the auditor evaluating the audit findings be satisfied of?

Correct answer D. The estimate of total likely misstatement is less than the materiality level

Open question

Question 116 Introduction to Auditing

What should NOT be considered when determining the level of materiality for an audit?

Correct answer B. The auditor’s remuneration

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Question 117 Introduction to Auditing

What do analytical procedures used at the planning stage of an audit generally achieve?

Correct answer D. All of the above

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Question 118 Introduction to Auditing

Which statement is most closely associated with analytical procedures applied at the substantive stage?

Correct answer D. It helps to accumulate evidence supporting the validity of a specific account balance

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Question 119 Introduction to Auditing

What does verification mean in auditing?

Correct answer C. Examining the physical existence and valuation of assets.

Open question

Question 120 Introduction to Auditing

At what value should stock be valued?

Correct answer B. Cost or market price, whichever is lower

Open question