This quiz works best with JavaScript enabled. Home > Auditing > Auditing > Auditing – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Auditing Quiz 20 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Based on the audit procedure for non-current liabilities, which is the correct answer for inspecting supporting documents such as invoice and receiving reports? A) Accuracy. B) Rights and obligations. C) Presentation and disclosure. D) Existence. Show Answer Correct Answer: B) Rights and obligations. 2. ..... is essentially an environmental management tool for measuring the effects of certain activities on the environment against set criteria or standards. A) Environmental Auditing. B) Management Auditing. C) Safety Auditing. D) None of above. Show Answer Correct Answer: A) Environmental Auditing. 3. Implement Risk profiling and control measures occurs in which PDCA cycle. A) Do. B) Plan. C) Check. D) Act. Show Answer Correct Answer: B) Plan. 4. Which of the following should be included in the audit plan? I. The nature, timing and extent of planned risk assessment procedures. II. The nature, timing and extent of planned further audit procedures at the assertion level. A) I only. B) II only. C) Both I and II. D) Neither I nor II. Show Answer Correct Answer: C) Both I and II. 5. Audit means ..... A) Recording business transactions. B) Preparing final accounts. C) Examination of books, accounts or vouchers. D) Decision making. Show Answer Correct Answer: C) Examination of books, accounts or vouchers. 6. External audit for public sector aims ..... A) To achieve high level of public accountability. B) To have clear understanding about the organization's strategic directions and objectives. C) To maintain or improve the efficiency and effectiveness of internal control and governance. D) All of the above. Show Answer Correct Answer: A) To achieve high level of public accountability. 7. A PA's legal licence to practice public accounting can be revoked by which organization? A) A the CPA Canada. B) B provincial body of PAs. C) C Auditing Standards Board. D) D provincial securities commissions. Show Answer Correct Answer: B) B provincial body of PAs. 8. Essentials of good audit report includes A) Simplicity. B) Clarity. C) Firmness. D) All of the above. Show Answer Correct Answer: D) All of the above. 9. Auditing begins where ..... ends A) Selling. B) Inventory valuation. C) Accounting. D) None of above. Show Answer Correct Answer: C) Accounting. 10. Analytical procedures used in planning an audit should focus on identifying A) Material weaknesses in the internal control system. B) The predictability of financial data from individual transactions. C) The various assertions that are embodied in the financial statements. D) Areas that may represent specific risks relevant to the audit. Show Answer Correct Answer: D) Areas that may represent specific risks relevant to the audit. 11. A public company has to do an external audit ..... A) Every quarter. B) Every week. C) Every month. D) Every year. Show Answer Correct Answer: D) Every year. 12. Which one of the following is more difficult to be objectively evaluated? A) Efficiency and effectiveness of operations. B) Compliance with government regulations. C) Presentation of financial statements in accordance with generally accepted accounting principles. D) All three of the above are equally difficult. Show Answer Correct Answer: A) Efficiency and effectiveness of operations. 13. Which of the following activities would most likely be performed by EDP department? A) Authorising transactions. B) Parity checks. C) Distributing output. D) Correction of transactional errors. Show Answer Correct Answer: A) Authorising transactions. 14. Bonus shares are issued to ..... A) New members. B) Existing share holders. C) Employees. D) None of the above. Show Answer Correct Answer: B) Existing share holders. 15. The primary factor that should be considered in determining the extent of supervision needed by an assistant is the assistant's A) Willingness to exercise due care. B) Competence. C) Professional certification. D) Independence. Show Answer Correct Answer: B) Competence. 16. When a PA knows that a tax client has skimmed cash receipts and not reported the income on his federal income tax return, but he signs the return as a PA who prepared the return, that PA has violated which rule of professional conduct? A) A Confidential Client Information. B) B Integrity and Objectivity. C) C Independence. D) D Accounting Principles. Show Answer Correct Answer: B) B Integrity and Objectivity. 17. ..... threat is the threat that due to a long or close relationship with a client or employer, a professional accountant will be too sympathetic to their interests or too accepting of their work. A) Familiarity. B) Self review. C) Advocacy. D) Intimidation. Show Answer Correct Answer: A) Familiarity. 18. Which of the following factors are normally considered by the auditor in determining the appropriate benchmark for the purpose of calculating overall materiality? I. Components of the entity's financial statements II. Laws and regulations III. Nature of the entity A) I and II only. B) I and III only. C) II and III only. D) I, II, and III. Show Answer Correct Answer: D) I, II, and III. 19. Present the auditors' report to the director is one of the ..... of auditors. A) Right. B) Duties. C) Responsibilities. D) None of above. Show Answer Correct Answer: C) Responsibilities. 20. In 1956, after the implementation of ..... Act audit for companies was made compulsory A) Companies. B) Income Tax. C) Consitutional. D) Labour Laws. Show Answer Correct Answer: A) Companies. ← PreviousNext →Related QuizzesAuditing QuizzesAuditing Quiz 1Auditing Quiz 2Auditing Quiz 3Auditing Quiz 4Auditing Quiz 5Auditing Quiz 6Auditing Quiz 7Auditing Quiz 8Auditing Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books