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Introduction to Auditing

The working papers which auditor prepares for financial statements audit are___________?

Auditing Mcqs, Introduction to Auditing /
The working papers which auditor prepares for financial statements audit are___________?

A. Evidence for audit conclusions
B. Owned by the client
C. Owned by the auditor
D. Retained in auditor’s office until a change in auditors

The working papers which auditor prepares for financial statements audit are___________? Read More »

Auditing Mcqs, Introduction to Auditing

What would most effectively describe the risk of incorrect acceptance in terms of substantive audit testing?

Auditing Mcqs, Introduction to Auditing /
What would most effectively describe the risk of incorrect acceptance in terms of substantive audit testing?

A. The auditor has ascertained that the balance is materially correct when in actual fact it is not
B. The auditor concludes the balance is materially misstated when in actual fact is not
C. The auditor has rejected an item from sample which was not supported by documentary evidence
D. He applies random sampling on data which is inaccurate and inconsistent

What would most effectively describe the risk of incorrect acceptance in terms of substantive audit testing? Read More »

Auditing Mcqs, Introduction to Auditing

What would most appropriately describe the risk of incorrect rejection in terms of substantive testing?

Auditing Mcqs, Introduction to Auditing /
What would most appropriately describe the risk of incorrect rejection in terms of substantive testing?

A. The auditor concludes balance is materially correct when in actual fact it is not
B. The auditor concludes that the balance is materially misstated when in actual fact it not
C. The auditor has rejected an item for sample which was material
D. None of the above

What would most appropriately describe the risk of incorrect rejection in terms of substantive testing? Read More »

Auditing Mcqs, Introduction to Auditing

When is evidential matter, generally, considered sufficient?

Auditing Mcqs, Introduction to Auditing /
When is evidential matter, generally, considered sufficient?

A. When it constitutes entire population
B. When it is enough to provide a basis for giving reasonable assurance regarding truthfulness
C. When it is objective and relevant
D. When auditor collects and evaluates it independently

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Auditing Mcqs, Introduction to Auditing

Which of the following factors is most important in determining the appropriations of audit evidence?

Auditing Mcqs, Introduction to Auditing /
Which of the following factors is most important in determining the appropriations of audit evidence?

A. The reliability of audit evidence and its relevance in meeting the audit objective
B. The objectivity and integrity of the auditor
C. The quantity of audit evidence
D. The independence of the source of evidence

Which of the following factors is most important in determining the appropriations of audit evidence? Read More »

Auditing Mcqs, Introduction to Auditing

In an audit of financial statements, substantive tests are audit procedures that __________?

Auditing Mcqs, Introduction to Auditing /
In an audit of financial statements, substantive tests are audit procedures that __________?

A. May be eliminated for an account balance under certain conditions
B. Are designed to discover significant subsequent events
C. Will increase proportionately when the auditor decreases the assessed level of control risk
D. May be test of transactions, test of balance and analytical procedures

In an audit of financial statements, substantive tests are audit procedures that __________? Read More »

Auditing Mcqs, Introduction to Auditing