C) Preliminary The Indian Companies Act, 1913, prescribed for the first time the qualifications of an Auditor. C) the audit assistants. Answer: C, 30. Audit and Assurance (AA) March/June 2019 Sample Answers Section A 1 D In line with ACCA’s Code of Ethics and Conduct, a self-interest threat would arise due to the personal relationship between the audit engagement partner and finance director. D) to the general public. B) The shareholders are authorized to do so B) intangible asset. Identification of involved parties: auditor, auditee, and third party WHICH OF THE FOLLOWING INFORMATION SHOULD A SUCCESSOR AUDITOR OBTAIN DURING THE INQUIRY OF? It is an examination of 6. THE MOST DIFFICULT TYPE OF MISSTATEMENT TO DETECT FRAUD IS BASED ON: A) RELATED PARTY PURCHASES B) the board of directors appoints a person to fill the vacancy. �t� ���o��u*,��4.Ӵ���ݻgO�d�M_x��xN�{�i]�GG-R.{�ƍ����5���-���J(�{�?s�
7E=�d��N�������ͅVڛ ���ª����5�#��#o�m>��nf9/�r�����s{�$`E��������� O�=@+��J|���o���S]}�=� A) Continuous audit. C) not necessarily honest. The 3-hour exam will assess all parts of the syllabus and will test knowledge and some comprehensive or application of this knowledge. C) SUBSTANTIAL INCREASES IN SALES A satisfied customer may lead to increased business. B) OBTAIN KNOWLEDGE OF MATTERS THAT RELATE TO THE NATURE OF ENTITY’S BUSINESS Answer: C, 54. In India balance sheet audit is synonymous to _______________. Each of the three parties involved in an audit ……………………. Answer: B, 38. A) recording business transactions. In that case ________ Answer: A, 48. B) DOCUMENT THE IDENTIFICATION OF FRAUD RISK FACTORS ALONG WITH RESPONSE TO THEM. 2. A) increasing the share capital. D) None of the above. Which of the following statement is most closely associated with analytical procedure applied at substantive stage? B) liabilities WHICH OF THE FOLLOWING IS NOT A QUALITY CONTROL CONSIDERATION ON ACCEPTING A NEW CLIENT? 2. The liabilities of an auditor can be _________. Internal auditor of a company must be _______________. A) Internal control. A) board of directors. To perform an internal audit all of the financial … The ……… is also expected to provide the resources needed and select staff members to accompany the auditors. 11. Who among the following can be appointed as auditor of a company? WHICH OF THE FOLLOWING IS THE MOST APPROPRIATE POTENTIAL REACTION OF THE AUDITOR TO HIS? D) Both A & B. AN AUDITOR WHO ACCEPTS AN AUDIT BUT DOES NOT POSSESS THE INDUSTRY EXPERTISE OF THE BUSINESS ENTITY SHOULD, A) ENGAGE EXPERTS Your email address will not be published. THE PREDECESSOR AUDITOR BEFORE ACCEPTING ENGAGEMENT? The statutory auditor of a Government Company submits his report to _________ D) None of the above. Audit means ___________. B) to prevent errors and frauds. SECTION-1 (AUDITING) INTRODUCTION TO AUDITING STRUCTURE: 1.1 Objectives 1.2 Introduction -an overview of auditing 1.3 Origin and evolution 1.4 Definition 1.5 Salient features 1.6 Scope of auditing 1.7 Principles of auditing 1.8 Objects of audit 1.9 Detection and prevention of … We provide all important questions and answers for all Exam. A) unlimited liability. A) the client, the auditor, and the auditeer Audit Interview Questions and Answers will guide us here that Audit is a process of an evaluation of a person, organization, system, process, project or product. See correct answer (a). Intangible assets are those which we can't be seen like goodwill of the … D) Official A) within one month of completion of capital subscription state of the company A) the memorandum of association and articles of association. B) audit of amortization of debt. B) Impersonal ledger. plays a role that contributes to its success. D) Error of principle. A) Cost accountant. c. statistical risk. Answer: D, 51. D) The provision for such removal are contained in section 224(7) A) It helps to study relationship among balance sheet accounts. B) Section 224(1) and Section 224(2). Answer: C, 27. D) MANAGEMENT INCENTIVE SYSTEM BASED ON SALES DONE IN A QUARTER, 62. 20 A measure of how willing the auditor is to accept that the financial statements may be materially misstated after the audit is completed and an unqualified opinion has been issued is the a. inherent risk. D) Mr. Z the holder of C.A certificate. C) Cash How would you describe an audit process? See correct answer (a). The general manager’s duties included matching of invoices with goods received notes. B) section 233(B) C) Civil and Criminal. Home » AUDITING MCQs » 300+ TOP AUDITING Objective Questions and Answers MCQs, A) product 1. D) non-profit making. Husna. Answer: D, 55. One of the audit procedures to check the issue of share capital of the newly formed company is __________. So, the CPA Auditing and Attestation candidates always get the latest CPA-Auditing questions. B) AAS-8. B) Error of omission. Answer: C, 14. The audit final report should include, at a minimum, the following: Audit Theory - Summary - NBA 2014 Exam 23 October 2015, answers Samenvatting - artikel "Audit Theory", compleet Exam December 2014, questions and answers Essay "Audit Theory" Samenvatting Encyclopedie der Rechtswetenschap week 1 tm week 7 D) Section 224(3) and Section 224(4) 64. Answer: B, 13. (choose the one NOT required), 1. B) Efficiency audit. 4. B) neither honest nor dishonest. B) MANAGEMENT REPRESENTATION LETTER Answer: B, 20. Auditing involves an outside person or organization reviewing data to ensure that it is accurate and valid, and that it didn’t withhold or play up information. IV) ORGANIZATION STRUCTURE C) six years. Share may be issued _____________. Answer: B, 24. C) banking stream B) at premium. Required fields are marked *. A) auditor C) the client, the moderator, and the auditee B) quality Answer: A, 50. Happy Supper. D) need not possess any professional qualification. D) ALL OF THE ABOVE, Your email address will not be published. External audit is the not the part of internal control.The internal audit … THE LEAST IMPORTANT ELEMENT IN THE EVALUATION OF AN AUDIT FIRM’S SYSTEM OF QUALITY CONTROL WOULD RELATE TO, A) ASSIGNMENT OF AUDIT ASSISTANTS 4. (adsbygoogle = window.adsbygoogle || []).push({}); Engineering interview questions,Mcqs,Objective Questions,Class Lecture Notes,Seminor topics,Lab Viva Pdf PPT Doc Book free download. D) OMISSION OF A SALES TRANSACTION FROM BEING RECORDED. r2�g��tsY\�ȶ3��c���L�z���D���Q���I ���8RTŠU���ek9��l�e{�1tq���"��n�{.`�|G~e��~܍2�d�0%R�)�Lxr����@iΉ{ߦE $"seHJ쭂�U��>r�t���t�Uq�_��C����j��6�%��Px��dx8�J�H��'�A. D) Sales C) audit of sanctions D) co-operative societies THE PRIMARY PURPOSE OF ESTABLISHING QUALITY CONTROL POLICIES AND PROCEDURES FOR DECIDING ON CLIENT EVALUATION IS TO, A) ENSURE ADHERENCE TO GENERAL Y ACCEPTED AUDITING STANDARDS Incorrect. A) (I) AND (I) B) (I) AND (II) C) I AND (IV) D) (I I AND (IV), 73. Answer: B, 23. THE USE OF AN AUDIT ENGAGEMENT LETTER IS THE BEST METHOD OF DOCUMENTING, I) THE REQUIRED COMMUNICATION OF SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROL 61. The Chartered Accountant Act was enacted by the Parliament of India in 1939. Auditing is the verification of financial position as disclosed by the financial statements. B) PROVISION OF OTHER SERVICES TO THE CLIENT WHICH MAY IMPAIR INDEPENDENCE A) a general meeting. C) the shareholders at an annual general meeting. Explain what is required to perform an internal audit? Answer: B. A) the auditor. Auditing refers to Our CPA-Auditing study material helps you to pass the AICPA test on your first attempt. A) to verify the assets and liabilities. A) Prior years errors. C) Section 226(3) and Section 226(4). CPA-Auditing Verified Answers We are a team of experienced AICPA professionals. B) banking and financial companies only. ASSESSMENT THAT THE RISK OF MATERIAL MISSTATEMENT DUE TO FRAUD IS HIGH IN RELATION TO EXISTENCE OF INVENTORY? Professional skepticism requires that the auditor assume that management is _________. Answer: D, 12. An audit is usually conducted in three steps: (1) A pre-examination or opening meeting with the auditee marks the beginning of the process. A) Section 226(1) and Section 226(2). D) It helps to accumulate evidence supporting the validity of a specific account balance B) the central government. C) premature results B) IMPROVED INTERNAL CONTROL SYSTEM C) To ensure audit work is being carried out as per Programme. D) Prior year financial statements. B) preparing the final accounts. B) external A) specified standards and plans THE RISK OF MANAGEMENT FRAUD INCREASES IN THE PRESENCE OF: A) FREQUENT CHANGES IN SUPPLIES Engineering 2021 , Engineering Interview Questions.com, AUDITING Objective type Questions with Answers. C) private limited company only. Learn vocabulary, terms, and more with flashcards, games, and other study tools. ��8oe��Vv��F]Q��{P�e|Dﵺ�>��>����'-'�:LMi� Preliminary expenses are the best example for _________. Answer: C, 42. Sale of land is a __________. C) to the bank. A) AAS-7. Duration of audit. Answer: B, 46. B) To provide a basis for subsequent audits D) the client, the auditor, and the auditee. B) managing director. As a result, when auditing an asset balance like investments, a relevant assertion is likely to be valuation. D) auditee. Characteristics of audit C) internal auditor Audit standards and reference documents used A) at par. Audit of rent, deposits and remittances does not cover ____________. Cost audit under section 233(b) of the companies act is ___________. C) to verify statements. D) Income statement audit. c. Internal control over financial reporting. B) ACCEPTANCE OR RETENTION OF CLIENTS WHOSE MANAGEMENT DOES NOT LACK INTEGRITY II) SIGNIFICANTLY HIGHER CONTROL RISK THAN THAT ASSESSED IN PRIOR AUDIT. A) reasonably honest. A) To provide a basis for review of audit work. d) Audit judgments. CPA EXAM MULTIPLE CHOICE QUESTIONS - Introduction to Auditing 1. C) ENSURE AUDIT FEES IS CHARGED ACCORDING TO THE TYPE OF AUDIT WORK ASSIGNED Go To Download Page Close. D) registration (certification) 7. A) Personal ledger. WHICH OF THE FOLLOWING FACTORS LIKELY TO BE IDENTIFIED AS A FRAUD FACTOR BY THE AUDITOR? A) voluntary B) five years. 63. Answer: C, 33. AUDITING STANDARDS DIFFER FROM AUDIT PROCEDURES IN THAT PROCEDURES RELATE TO, A) AUDIT ASSUMPTIONS A) the C & AG. Which of the following sections deals with qualification of the auditor? Section A comprises 3 ten-mark case-based questions each containing five objective test questions. 3. CHARACTERISTICS, A) TAX EVASION See correct answer (a). B) first annual general meeting. ... INTRODUCTION The diagram on page 5 sets out the different stages of the audit process. 2. 6. D) all the above D) revenue expenditure The work of one clerk is automatically check by another clerk is called _________. B) expected results D) annual general meeting C) ADOPTION OF CONSERVATIVE ACCOUNTING PRINCIPLES A) engage experts. 2. D) none of the above. D) Section 242(B). Answer: A, 40. B) manufacturing C) audit of receipts. For example: Customer satisfaction is based on the speed at which customer is able make transactions of the company website. In this session, Prof. Eralee has explained the basics of auditing, its features, objectives etc. A) the central government appoints a person to fill the vacancy 5. B) Balance sheet audit. B) A person of unsound mind. �����\��>���A�2����?��΅?uAiί�����P��'�`>>�������{|7{�}����?��s-�l��V�� 8�i��g��A���LڰG��l$���^�M��� 3.X����]C 7. D) COOPERATION FROM OTHER AUDITORS, 72. D) floating asset. A) Final audit. A) Debenture holders. A) the government company itself. d. financial risk. B) Internal check. Which of the following is not an advantage of the preparation of working paper? II) DISAGREEMENT WITH MANAGEMENT CONCERNING AUDITING PROCEDURES D) preparing final accounts. Uploaded by. 66. A) He is removed at a general meeting. D) avoidable The Government of Bombay was the first to conduct related courses of study such as the Government Diploma in Accountancy (GDA). A) Auditor will obtain sufficient appropriate audit evidence. B) REQUEST INVENTORY COUNT AT A DATE CLOSE TO YEAREND A) Bank statements obtained from the client D) the company secretary. B) Balance sheet audit. Answers to questions for aui2601 ... Chapter 1 - Introduction to Internal Auditing. D) PERFORM ANALYTICAL PROCEDURES. C) Expenditure audit. Auditor shall report on the accounts examined by him __________. I) INFORMATION ABOUT INTEGRITY OF MANAGEMENT II) OBJECTIVE AND SCOPE OF AUDITOR’S WORK C) Balance sheet audit. D) Effectiveness audit. x��\[sݶ~ׯ�[Ι��B\�ē�M�$U�Τ}�$�ے#�I�__�y���"A`������O�F�Ӷ�/._�|��=�y{2�>���������'�Q�����|}����;��ڨ��듶��O�S�V���@gN�_����|��v�����F ���ɾs�J�N�����v�t^Z����������"��:^ 7�u���=���4V����Ӑ��B4�;&qn�N�ÃJ���aI�ՖM�0s���p�S�ջ���g{�HcZ��k�8�,�����;?�'�$��?���a�����m�1�_�����74��R�taH�_ B) Interim audit. The following mentioned are a few internal audit interview questions and answers. C) AAS-9. C) It helps to identify possible oversights. Secret reserve can be created by _______________. C) conversion of shares into stock. C) Compensating error. The final exams for the Audit class are just around the corner and the quiz below is designed to help you pass the quiz by getting rid of the cold feet you may be having. B) the C & AG. C) compliance Answer: B, 19. D) To provide a guide for advising another client on similar issues. C) Adjusted interim financial statement. b. acceptable audit risk. C) income and expenditure accounts where appropriate. Have you ever discovered fraud in an audit? 69. The Big IS Development Questions. B) Documents obtained by auditor from third parties directly. A) (I) AND (I) B) (I) AND (I I) C) (I), (I) AND (I I) D) I) AND (I I), 70. C) Detailed audit. A) management integrity. C) Concurrent audit. 67. B) Continuous audit. A) make written representations. C) NOT NECESSARILY HONEST Auditing-B.com 3rd Year Unit I Introduction to Auditing Meaning and Definition of Auditing The word Audit is derived from Latin word “Audire” which means ‘to hear’. Audit of transactions does not include __________. Special audit is conducted at the order of the central government. b. If you are not sure how to answer the questions, or experience anxiety, have a look at the eBook I wrote for you, the Internal Audit Interview Guide. A) to discover errors and frauds. 71. 8. A) related party purchases. C) the legislature. The Act regulates that a person can be … A) internal D) THE COMPANY HAS MADE POLITICAL CONTRIBUTIONS. 76. 5 0 obj Explain What Is External Audit? C) general meeting. ��wI\���ֻ�� B) SYSTEM OF DETERMINING AUDIT FEES Which of the following statement is not correct regarding removal of first auditor before expiry of the term? 65. B) client 500 to the company. B) process The use of an audit engagement letter is the best method of assuring the auditor will have which of the following? Of the following, which is the least persuasive type of audit evidence? The auditor of a government company shall be appointed by ________. C) Carbon copies of sales invoices inspected by the auditor D) control risk. B) to know that all receipts and payments have been properly recorded. Answer: A, 34. The retiring auditor does not have a right to _________. 10. THE AUDIT ENGAGEMENT LETTER, GENERAL Y, SHOULD INCLUDE A REFERENCE TO EACH OF THE FOLLOWING EXCEPT. IV) NOTIFICATION OF ANY CHANGES IN THE ORIGINAL ARRANGEMENTS OF THE AUDIT. Answer: B, 43. B) get his representation circulated. Define the term “interim audit”? B) the shareholders. A) AL RISK FACTORS AS MENTIONED IN AAS4, SHOULD BE CONSIDERED AND DOCUMENTED ALONG WITH RESPONSE TO THEM. D) METHODS OF WORK. The independent auditor … Answer the questions in the study units and make sure you understand the principles contained in the questions. A) audit of borrowings. Answer: B, 36. Answer: A, 52. C) Mr. Y who owes Rs. D) DISHONEST UNLESS PROVED OTHERWISE. Answer: D, 44. D) the auditor and his audit assistants. >��|A��k�AI���}`����G�L�G�qDO����F6{ٵ#hf�(�hD�cf�T��#vr���l6Xy���� �-�p�{ D) all the above. D) remittance audit. C) the issue of debenture. B) related party sales. In Audit & Assurance (AA) paper, all questions are compulsory. B) Management representation letter. A) Civil Interim audit is an audit carried out within the financial year, normally after six to nine months after the start of the financial period. B) EVALUATE THE APPROPRIATENESS OF AUDIT EVIDENCE OBTAINED A) assets D) preliminary results. A) AVAILABILITY OF AUDIT ASSISTANTS WITH NECESSARY SKILL AND COMPETENCE.