Auditing Mcqs Practice Test

Question 1

Audit fess is a part of__________.

Accepted Answer

D. administration overhead

Question 2

IFRS 9 explains about?

Accepted Answer

C. Accounts Receivable

Question 3

Scope of financial audit is__________?

Accepted Answer

A. Financial information

Question 4

Auditing engagement can be performed w.r.t.

Accepted Answer

D. Any entity

Question 5

How many Standards on Auditing have been issued?

Accepted Answer

D. 38

Question 6

Which of the following is not type of engagement standard?

Accepted Answer

B. Standard on Quality Control

Question 7

Pick the odd one:

Accepted Answer

B. Preparation of vouchers

Question 8

Which of these are types of Audit Report?

Accepted Answer

All of above

Question 9

You have been proposed as auditor of a company. What is the first step that you should take?

Accepted Answer

A. Obtain the client’s permission to communicate with the existing auditor

Question 10

Which one of the following may auditors NOT perform for their client?

Accepted Answer

A. Taking management decisions

Question 11

Which of the following are fundamental ethical principles for professional accountants?1	Competence2 Compliance3	Integrity4	Objectivity

Accepted Answer

B. 1, 3 and 4 only

Question 12

An auditor should not accept a loan on favourable commercial terms from an audit client because of the threat to his or her independence. The threat would be a___________?

Accepted Answer

A. Self-interest threat

Question 13

Which of the following statements is INCORRECT?

Accepted Answer

A. An auditor may serve on the board of directors of an audit client.

Question 14

Which of the following is true about written representations?

Accepted Answer

B. They should be used only when there is a lack of other substantive audit evidence

Question 15

Which of the following would you not use as a benchmark for comparison when undertaking analytical procedures?

Accepted Answer

A. Other audit clients

Question 16

What is meant by the expression ‘expectation gap’?

Accepted Answer

C. The gap between the public perception of the role of company auditors and their statutory role and responsibilities

Question 17

Which of the following does NOT belong in the auditors’ report?

Accepted Answer

C. Involvement of any specialist

Question 18

Which one of the following is part of the auditor’s function?

Accepted Answer

B. Obtaining and evaluating audit evidence on the financial statements

Question 19

What sort of assurance is provided in a review engagement?

Accepted Answer

B. Negative assurance

Question 20

Which of the following statements is correct?

Accepted Answer

A. When a company negotiates a ‘friendly’ takeover, it usually appoints a firm of accountants to carry out due diligence on the takeover target.

Auditing Mcqs