Auditing MCQs with Answers

A. Statutory audit

B. Balance sheet audit

C. Concurrent audit

D. Both (

A. Annual audit

B. Continuous audit

C. Detailed audit

D. Statutory audit

A. Complete audit

B. Completed audit

C. Final audit

D. Detailed audit

A. It is conducted at regular interval

B. It may be carried out on daily basis

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

D. It is expensive

A. Verification of assets and liabilities

B. Vouching of income and expense accounts related to assets and liabilities

C. Examination of adjusting and closing entries

D. Routine checks

A. Materiality is a relative concept

B. Materiality judgments involve both quantitative and qualitative judgments

C. Auditor’s consideration of materiality is influenced by the auditor’s perception of the needs of an informed decision maker who will rely on the financial statements

D. At the planning state, the auditor considers materiality at…

A. Lower, Higher, Lower

B. Lower, Lower, Higher

C. Higher, Lower, Lower

D. Lower, Higher, Higher

A. Amount of known misstatement is documented in working papers

B. Estimates of the total likely misstatement is less than materiality level

C. Estimate of the total likely misstatement is more than materially level

D. Estimates of the total likely misstatement cannot be made

A. Prior year’s errors

B. The auditor’s remuneration

C. Adjusted interim financial statements

D. Prior year’s financial statements