Settlement of Audit Objections MCQs

Settlement of Audit Objections

Analytical procedures are carried out for which one of the following purposes:

To reduce detection risk

To assess inherent risk

To reduce control risk

To determine detection risk

Author: rikazzz Comment

Settlement of Audit Objections

The phrase (Scope of an Audit) refers to which one of the followings:

Engagement letters

Audit procedures

Audit evidence

Reasonable assurance

Author: rikazzz Comment

Settlement of Audit Objections

Who is responsible for the appointment of statutory auditor of a limited company:

Directors of the company

Members of the company

The central government

The state government

Author: rikazzz Comment

Settlement of Audit Objections

AB and Co, chartered accountant, have been requested by their client XYZ Ltd. not to confirm accounts receivables because of concerns about creasing conflicts with customers over amounts owed. The auditors were satisfied concerning receivables after applying alternative audit procedures AB and Co.’s auditors report likely contained:

Qualified opinion

Disclaimer of opinion

Unqualified I opinion with an explanatory paragraph

Unqualified opinion

Author: rikazzz Comment

Settlement of Audit Objections

Who is responsible for designing and preparing the financial statements:

Auditor

Management

Accountant

Company secretary

Author: rikazzz Comment

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

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

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

Settlement of Audit Objections

The receipt of goods must be entered in:

goods inward book

goods outward book

receipt of Stores

cash payment register

Author: rikazzz Comment