Auditing MCQs - MCQtimes.com

Settlement of Audit Objections

A kind of audit conducted for a part of the accounting year is called:

Periodical audit

Partial audit

Cost audit

Author: rikazzz Comment

Audit

Which of the following is not an analytical procedure?

Tracing of purchases recurred in the purchase book to purchase invoices

Comparing aggregate wages paid to number of employees

Comparing the actual cost with standard costs

All of these

Author: rikazzz Comment

Annual Budget

__________ Documents classify total revenue expenditure into plan and non-plan expenditure. The main items of non-plan expenditure are interest payments, defense services, subsidies, salaries and pensions.

Production

Budget

Contribution

Sales

Author: rikazzz Comment

Annual Budget

Which of the following could not explain profits being made but cash shortages also occurring at the same time?

Extended credit period being offered

Higher cash drawings

Heavy capital expenditure

More loans being taken out

Author: rikazzz Comment

Annual Budget

Budgeting has always been part of the activities of any business organization of any size, but formal budgeting in its present form, using modern budgeting disciplines, emerged in the __________ as the numerical underpinning of corporate planning.

18th Century

19th Century

20th Century

21st Century

Author: rikazzz Comment

Settlement of Audit Objections

Which of the following is not an example of a circumstance, in which additional tests of control will not be performed after obtaining an understanding to plan the audit:

Controls are known to be cost ineffective

Controls are effective but auditor opines that performing tests of control and reduced substantive tests would not be cost effective

Controls are effective and evidence already obtained is adequate to support a planned assessed level of control risk which is less than high

Performing extensive substantive testing would not lead to efficiency

Author: rikazzz Comment

Settlement of Audit Objections

Which of the following factors likely to be identified as a fraud factor by the auditor:

The company is planning an initial public offer of quality shares to raise additional capital for expansion

Bank reconciliation statement includes deposits intransit

Author: rikazzz Comment

Scrutiny of Record for Audit Purpose

when counting cash on hand the auditor should

ensure presence of somebody from management

obtain a receipt from custodian as to its return

ensure postage and revenue stamps are not counted in physical count

temporary advances to employees are counted to calculate balance of cash in hand

Author: rikazzz Comment

Settlement of Audit Objections

Which of the following best describes the primary purpose of audit program preparation?

To detect errors or fraud

To comply with GAAP

To gather sufficient appropriate evidence

To assess audit risk

Author: rikazzz Comment

Internal Control

If the auditor assesses control risk as high ______

Document the conclusions

Documents the reasons along with conclusions

Perform tests of control

Perform walk through tests

Author: rikazzz Comment