T.Y B.COM
SEMESTER - 5
MID SEMESTER EXAMINATION
AUDIT & ASSURANCE
MCQS - 2017
1. Match the following:
|
a. Standards on Auditing |
I. 4000-4699 |
|
b. Standards on Related Services |
II. 100-999 |
|
c. Standards on Review Engagements |
III. 2000-2699 |
|
d. Standards on Assurance Engagements |
IV. 3000-3699 |
A. a.-III, b.- IV, c.-I, d.-Il
B. a.-IV, b.-II, c.-III, d.-IV
C. a.-I, b.- IV, c.-II, d.-III
D. a.-Il b.- I, c.-III, d.-IV
2. Auditing job is ______ and ______ in nature and require auditors time, energy, attention and patience.
A. Planning and Testing
B. Analytical and Critical
C. Practical and Sophisticated
D. Experimental and Tedious
3. Normally, the auditor finds it necessary to rely on evidence that is ________.
A. Inconclusive
B. Probable
C. Persuasive
D. All of the above
4. An audit checklist is ________.
A. an organization chart of the clients' management structure.
B. a means of ensuring that all relevant items are examined
C. an internal control questionnaire.
D. an audit Programme
5. Which of the following are the basic principle governing audit
A. Audit planning, Audit Evidence
B. Confidentiality and Audit notebooks
C. Work performed by other, skill and competence
D. Independence, integrity, objectivity
A. I, II, III, IV
B. II, I, IV
C. I, III, IV
C. II, III, IV
6. A sales of Rs. 5,00,000 to Mr. Kavi was entered as sales to Mr. Ravi. This is an example of ________.
A. Error of omission
B. Compensating error
C. Error of principle
D. Error of commission
7. According to SA 230 the form and content of working papers are affected by
A. The nature and complexity of the client's business
B. The nature of the engagement
C. The nature and condition of the client's records and degree of reliance on internal controls.
D. All of the above
8. Records of communication with retiring auditor are documented in __________.
A. Permanent audit file
B. Audit note book
C. Audit Working papers
D. Current audit file
9. Secondary objective of audit is ________.
A. Detection and prevention of errors
B. Detection and prevention of frauds
C. Expression of independent opinion on accounts
D. Detection and prevention of errors & frauds
10. Purchase of factory furniture has been debited to general expense account it is error of
A. Omission
B. Commission
C. Compensating Error
D. Principle
11. Standards on Assurance Engagements is to be applied _______.
A. in the review of historical financial information
B. In the audit of historical financial information
C. to engagements to apply agreed upon procedures
D. in engagements dealing with subject matters other than historical financial information
12. Sufficiency is the measure of the ________ of audit evidence obtained whereas appropriateness of audit evidence implies its _________.
A. quantity, relevance and reliability
B. quantity, accuracy
C. relevance, quantity
D. reliability, quantity
13. Current Audit File relating to audit of a partnership firm will not contain _______.
A. Letters of confirmation
B. Audit Programme
C. Partnership Deed
D. Audit Plan
14. The main objective of _______ is to avoid or reduce income tax liability.
A. Partial secret Reserve
B. Window Dressing
C. Secret Reserve
D. None of the above
15. Goods returned by customer for Rs.5000/- were taken into stock but no entry was passed. It is ______.
A. an error of Omission
B. Compensating error
C. an error of principal
D. an error of Commission
16. Consider the following stages, an auditor has to undergo before commencing a new audit.
I. Ascertain the scope of the audit work.
II. Knowledge about business of his client
III. The agreement with the client
IV. Instructions to and information from client
A. II, I, III, IV
B. III, I, II, I
C. I, III, II, IV
D. I, II, III, IV
17. Factors to be considered while planning an audit of financial statements are _________.
A. Changes in circumstances during the audit engagement
B. Previous experience of key engagement team members
C. Size and complexity of business
D. All of the above
18. An Audit programme is _________.
A. The date on which balance sheet to be signed by the auditor.
B. the duties to be performed by auditor.
C. guidance to the audit team as to the work to be performed.
D. a device to facilitate the audit of computer system.
19. Which of the following statements is/are true or false about continuous audit?
I. It is conducted at regular/irregular intervals throughout the year,
II. It shall be carried out on a daily basis,
III. It is needed when the organization has a good internal
control system,
IV. It is expensive.
A. True, False, False, True
B. True, False, True, True
C. True, True, False, True
D. True, True, True, True
20. What is the advantage of the continuous audit?
A. Chances of alterations of audited figure are more
B. Adjustment in Income and profit can be mode
C. The audit work is distributed evenly throughout the year
D. The auditor can help to write the book
21. Who will be the actual owner and custodian of working papers prepared for the purpose of audit?
A. Shareholders
B. Board of Directors
C. Auditor
D. Government
22. Which of the following will be consider as a diary in which auditor scribble down all important inquires in order to avoid the possibility of unquestioned material facts?
A. Audit Evidence
B. Audit Working papers
C. Audit Notebook
D. Audit Evidence and Working papers
23. Which of the following is not a method of obtaining audit evidence?
A. Accounting Statistics
B. Inspection
C. Observation
D. Computation
24. According to SA 240 a financial audit is conducted by the auditor to obtain ________ assurance that financial statements are free from material misstatements caused by fraud and/ or error.
A. absolute
B. Perfect
C. absolute and reasonable
D. Reasonable
25. Manipulation of accounts include ______.
A. Window dressing
B. Secret reserve
C. Secret reserve and window dressing
D. all types of error
26. Which of the following is not an advantage of the preparation of working paper?
A. To provide a basis for subsequent audits
B. To ensure audit work is being carried out as per programme
C. To provide a guide for advising another client on similar issues
D. To provide a basis for review of audit work
27. _______ are such errors the existence of which becomes apparent in the process of compilation of accounts.
A. Intentional error
B. Concealed error
C. Unintentional error
D. Self-revealing error
28. The wrong allocation of amount between capital and revenue expenditure is a/an ________.
A. compensating error
B. error of principle
C. error of commission
D. trial balance error
29. Which of the following will be helpful in determining the Scope of Audit Work and the extent of the auditor's responsibilities for conducting audit?
A. Audit engagement letter
B. Director's letter
C. Joining letter
D. Audit coverage letter
30. When accounts are prepared in such a manner that they indicate a much better and sound financial position of the business enterprise than in facts, it is known as
A. Partial secret Reserve
B. Secret Reserve
C. Window Dressing
D. None of the above
No comments:
Post a Comment