Auditing MCQs with Answers

A. Cost
B. Market price
C. Cost or Market price whichever is lower.
D. Cost less depreciation.

A. cost
B. Market price
C. Cost or market price whichever is lower
D. Cost less depreciation

A. Be included in the stock
B. Not be included in the stock
C. Not be checked by auditor
D. None of the above

A. To be reliable, evidence should conclusive rather than persuasive
B. Effective internal control system provides reliable audit evidence
C. Evidence obtained from outside sources routed through the client
D. All are correct.

A. May be eliminated for an account balance under certain conditions
B. Are designed to discover significant subsequent events
C. Will increase proportionately when the auditor decreases the assessed level of control risk
D. May be test of transactions, test of balance and analytical procedures

A. Randomly
B. Disproportionately
C. Directly
D. Inversely

A. Minutes of meetings
B. Confirmations from debtors
C. Information gathered by auditor through observation
D. Worksheet supporting consolidated financial statements

A. The auditor concludes balance is materially correct when in actual fact it is not
B. The auditor concludes that the balance is materially misstated when in actual fact it not
C. The auditor has rejected an item for sample which was material
D. None of the above

A. The auditor
B. The client
C. The audit assistants
D. The auditor and his audit assistants

A. Evidence for audit conclusions
B. Owned by the client
C. Owned by the auditor
D. Retained in auditor’s office until a change in auditors