Auditing MCQs with Answers

A. purchase orders

B. sales orders

C. sales invoices

D. bill of loading

A. identify cases of unrecorded revenue

B. ensure proper disclosure in the balance sheet

C. recompute accrued income on the data of balance sheet

D. Any of these

A. one audit firm should audit the IFI and a different firm should audit the financial statements for the year as a whole.

B. one accountancy firm should review the IFI and a different firm should audit the financial statements for the year as a whole.

C. the same firm should audit the IFI and the financial statements for the year as a whole.

D. the same firm should review the IFI and the…

A. Positive assurance

B. Negative assurance

C. High level of assurance

D. No assurance

A. Conducting the inventory count

B. Obtaining and evaluating audit evidence on the financial statements

C. Calculating the year-end accruals figure for inclusion in the accounts

D. Providing representations to management

A. Introductory paragraph specifying the pages to which the report relates and the accounting convention adopted

B. Basis of the opinion

C. Involvement of any specialist

D. Statement of responsibilities of directors and auditors

A. The gap between how the directors of a company perform their duties and how the shareholders expect them to perform

B. The gap between how the directors of a company perform their duties and how the general public expects them to perform

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

D. The gap between the auditors’ own perception of their…

A. Other audit clients

B. Previous years

C. Other companies in the same industry

D. Budget