Auditing MCQs with Answers

A. Reporting to the shareholders on the accuracy of the accounts

B. Establishment of internal controls

C. Keeping proper accounting records

D. Supplying information and explanations to the auditorThe correct answer…

A. International Accounting Standards Board

B. International Federation of Accountants

C. International Standards Board

D. Auditing Practices BoardThe correct answer to the question: "International…

A. The auditor should express an opinion on financial statements.

B. His opinion is no guarantee to future viability of business

C. He is responsible for detection and prevention of frauds and errors in financial statements

D. He should examine whether recognised accounting principle have been…

A. Error of omission

B. Error of commission

C. Compensating error

D. Error of principleThe correct answer to the question: "A…

A. Circulate representations to members

B. Apply to the court to have the proposal removed

C. Speak at the AGM/EGM where the removal is proposed

D. Receive notification of the AGM/EGM where the removal is…

A. Duty to report to the company’s bankers

B. Duty to report to the members

C. Duty to sign the audit report

D. Duty to report on any violation of lawThe correct…

A. The shareholders in a general meeting

B. The managing director

C. The board of directors in a board meeting

D. The audit committeeThe correct answer to the question: "Assuming…

A. the directors

B. the company’s creditors (payables)

C. the company’s bank

D. the shareholdersThe correct answer to the question: "The independent…

A. Until the audit is complete

B. Until the financial statements are complete

C. Until the next AGM (Annual General Meeting)

D. Until the directors remove themThe correct answer to the…

A. A matter is material only if it changes the audit report

B. A matter is material if the auditor and the directors both decide that further work needs to be done in the area under question

C. A matter is material only if it affects directors’ emoluments

D. A matter is material if its omission or misstatement…