Settlement of Audit Objections

Audit procedures

Audit evidence

Compliance audit

Technical analysis

Cash in always material as materiality is qualitative concept

No audit of cash is needed when, in auditor’s opinion, cash is immaterial. Materiality is a relative concept

The cash balance need only be audited if the balance is in overdraft

Cash is to be verified if control risk is assessed as high

To be reliable, evidence should conclusive rather than persuasive

Effective internal control system provides reliable audit evidence

Evidence obtained from outside sources routed through the client

All are correct.

Auditing uses the theory of evidence to verify the financial information made available by accountancy

Auditing lends credibility dimension and quality dimension to the financial statements prepared by the accountant

Auditor should have through knowledge of accounting concepts and convention to enable him to express an opinion on financial statements

All of the above

Systematic sampling

Random sampling

Haphazard sampling

None of these

Financial report

Financial statement

Director report

Auditor’s report

Valuation of assets is the responsibility of management

The auditor can rely on a certificate issued by an authorized valuation as to the valuation of assets in the balance sheet

The auditor should value the asset as per generally accepted accounting principle d) Valuation is no part of auditor’s duty

Valuation is no part of auditor’s duty

Internal control

Internal check

Internal audit

None of the above

a description, memorandum or an outline of the work to be done in a business

the rules and regulations prescribed for writing up the books of accounts

to gain knowledge of clients accounting system

a trial work

Modify his audit report

Insist it should be disclosed in the notes to financial statements

Write it in letter of weakness

Both A and C