Quiz
MCQ4
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Questions in this quiz (25)
1Evidence is used by which of the following professionals?
- AAuditors
- BScientists
- CLawyers
- DAll of the above
2An _________ programme is a list of audit procedures for an audit area or an entire audit.
- AControl
- BEvidence
- CData
- DAudit
3Characteristics that effect the reliability of evidence include:
- AIndependence of provider
- BTimeliness of evidence
- CAuditors direct knowledge
- DAll of the above
4The following are all types of audit evidence except:
- AAnalytical procedures
- BPhysical examination
- COrganization
- DConfirmation
5An insurance policy is an example of:
- AExternal documents
- BOther
- CInternal documents
- DBoth external and internal documents
6The Sarbanes-Oxley Act requires auditors of public companies to retain audit files for no less than:
- ATen years
- BTwenty years
- CThree years
- DSeven years
7Which of the following is an example of a supporting schedule which is support of specific amounts on the client's financial statements?
- AA. Reconciliation
- BB. Scanning
- CC. Trial balances
- DAll of the above
- EA and B only
- FC and B only
- GA and C only
8If an auditor believes the financial statements of a client are not fairly presented then the auditor should:
- ANotify users through an auditor report
- BReport the findings to the government
- CNotify the external users by advertising its findings
- DAll of the above
9Fair representation in the financial statements:
- ARest with the creditors
- BRests with the shareholder
- CRests with the auditors
- DRests with the management
10When an auditor believes a client is involved in illegal acts, the auditor should:
- AHelp the client destroy all evidence of the illegal act
- BGo to management at a level above those likely to be involved in the potential illegal act
- CWithdraw from the engagement immediately
- DGo to the press
11Audit objectives should be estimated for each of the following except:
- AManagement Reports
- BBalances
- CTransactions
- DPresentations and Disclosures
12_____________ uses comparison and relationship to assess whether account balances or other data appear reasonable.
- ATest of details
- BInternal details
- CAnalytical procedures
- DWalk through tests
13___________ judgment should be used when setting and applying materiality guidelines.
- AProfessional
- BMinimum
- CAmateur
- DMaximum
14Materiality is allocated to accounts on the balance sheet while keeping the following items in mind:
- ACertain accounts
- BAudit costs of the allocation
- COverstatements and understatements
- DAll the above
15The risk that the portion of the population selected for review does not accurately represent the population, is what type of risk?
- ASampling
- BAudit
- CDetection
- DInherent
16As inherent risk increases, planned detection risk
- AStays the same
- BIncreases
- CDecreases
- DBecomes negative
17If the level of audit assurance is 97%, the level of acceptable audit risks is
- A7%
- B3%
- C5%
- D10%
18In evaluating engagement risks, the auditor should be aware of items such as:
- AThe clients previous year's profits
- BThe clients method of financing growth
- CThe client liquidity position
- DAll of the above
19Factors affecting inherent risks include:
- AA. Non routine transaction
- BB. Internal controls
- CC. Initial audit
- DAll of the above
- EA and B only
- FA and C only
- GB and C only
20The major limitation of using the audit risk model is the:
- AObjective nature of its components
- BThere is no limitation to the model
- CApplication of the model
- DSubjective nature of its components
21Because of legal liability and loss of professional reputation most auditors are concerned about:
- AA. Status- quo auditing
- BB. Over-auditing
- CC. Under-auditing
- DAll of the above
- EA and B only
- FA and C only
- GB and C only
22Materiality and risk are_________ related.
- AInversely
- BDirectly
- CEqually
- DNone of the above
23_________ smoothing is a form of earning management in which revenues and expenses are shifted between periods to reduce fluctuations in earnings.
- AExpense
- BEquity
- CRevenue
- DIncome
24Fraudulent financial reporting may be contributed to:
- AExternal Performance Pressures
- BLack of Segregation of Duties
- CInternal Performance Pressures
- DAll of the above
25If an auditor discovers fraud, an auditor should:
- AConduct further investigations
- BApproach the appropriate level of management
- CConsider withdrawing from the audit if the fraud is significant
- DAll of the above
Information
- Description
- In class test practice sample for Advanced Auditing Principles and Practice
- Author
- clara.azurmendi
- Language
- English
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- 307
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