Auditing MCQs / Q&A

Which of the following is not true about opinion on financial statements? A. The auditor should express an opinion on financial statements. B. His opinion is no guarantee to future viability of business C. He is responsible for…

When an auditor is proposed for removal from office, which one of the following is he NOT permitted to do? A. Circulate representations to members B. Apply to the court to have the proposal removed(Correct) C. Speak at the AGM/EGM…

Which of the following is normally the most reliable source of audit evidence? A. Internal audit B. Suppliers’ statements(Correct) C. Board minutes D. Analytical review

Internal audit is undertaken: A. By independent auditor B. Statutorily appointed auditor C. By a person appointed by the management(Correct) D. By a government auditor

In determining the level of materiality for an audit, what should not be considered? A. Prior year’s errors B. The auditor’s remuneration (Correct) C. Adjusted interim financial statements D. Prior year’s financial statements…

Balance sheet does not include­:_____________? A. Verification of assets and liabilities B. Vouching of income and expense accounts related to assets and liabilities C. Examination of adjusting and closing entries D. Routine checks …

Which of the following statements is not correct about materiality? A. Materiality is a relative concept B. Materiality judgments involve both quantitative and qualitative judgments C. Auditor’s consideration of materiality is…