Auditing MCQs with Answers

A. Background i.e. industry

B. Previous year’s audit i.e. any qualifications in the report

C. Considering the work to be done by the client staff e.g. internal audit

D. Considering whether the financial statements show a true and…

A. Compliance risk

B. Detection risk

C. Control risk

D. Inherent riskThe correct answer to the question: "Audit risk…

A. The timing of the audit

B. Analytical review

C. Last year’s written representation letter

D. Obtaining written representationsThe correct answer to the question: "Which…

A. the timing of the audit

B. whether corrections from the inventory count have been implemented

C. last year’s audit

D. the potential use of internal auditThe correct answer to…

A. The risk of the auditor carrying out a test the wrong way round

B. The risk of reliance on unsuitable audit evidence

C. The risk that the sample does not reflect the population

D. The risk of the auditor reaching the wrong conclusions…

A. Systematic selection

B. Pervasive selection

C. Random selection

D. Haphazard selectionThe correct answer to the question: "Which of…

A. Memorandum & articles of association

B. Audit planning memorandum

C. Summary of unadjusted errors

D. Details of the work done on the inventory countThe…

A. Appropriateness & competence

B. Sufficiency & appropriateness

C. Reliability & extensiveness

D. Objectivity & independenceThe correct answer to the question: "According…

A. Internal audit

B. Suppliers’ statements

C. Board minutes

D. Analytical reviewThe correct answer to the question: "Which of…

A. The design of the internal control system and the implementation of the controls

B. The design of the internal controls and the implementation of the control system

C. The implementation of the controls and the correctness of the accounting records

D. The design of the internal control system and the…