Most important auditing mcqs with answers for one paper auditing department test preparation online.
Auditing MCQs
Audit fess is a part of:
A. works on cost.
B. selling overhead.
C. distribution overhead.
D. administration overhead
IFRS 9 explains about:
A. Inventory
B. Accounts Payable
C. Accounts Receivable
D. Expenses
Scope of financial audit is:
A. Financial information
B. Non-financial information
C. Both (a) and (b)
D. None of these
Auditing engagement can be performed w.r.t:
A. Profit making entity
B. Non-profit making entity
C. Corporate entity only
D. Any entity
How many Standards on Auditing have been issued:
A. 32
B. 34
C. 36
D. 38
Which of these are types of Audit Report:
A. Unqualified opinion
B. Qualified opinion
C. Adverse opinion
D. Disclaimer of opinion.
All of above
Which one of the following may auditors NOT perform for their client:
A. Taking management decisions
B. Preparation of accounting records
C. Preparing tax computations
D. Advising on weaknesses
What sort of assurance is provided in a review engagement:
A. Positive assurance
B. Negative assurance
C. High level of assurance
D. No assurance
To test whether sales have been recorded, the auditor should draw a sample from a file of:
A. purchase orders
B. sales orders
C. sales invoices
D. bill of loading
Which of the following is a revenue reserve:
A. Capital redemption reserve
B. Security premium account
C. Debenture redemption reserve
D. Capital reserve
Depreciation does not arise form:
A. effluxion of time
B. use
C. obsolescence through technology
D. remarket expectation
Which of the following affects audit effectiveness:
A. Risk of over reliance
B. Risk of incorrect rejection
C. Risk of incorrect acceptance
D. Both A. and C.
Balance sheet audit includes verification of:
A. Assets
C. Income and expense accounts where appropriate
B. Liabilities
D. All of the above
Audit in depth is synonymous for:
A. Complete audit
B. Completed audit
C. Final audit
D. Detailed audit
In Pakistan, balance sheet audit is synonymous to:
A. Annual audit
B. Continuous audit
C. Detailed audit
D. Statutory audit
Audit of banks is an example of:
A. Statutory audit
B. Balance sheet audit
C. Concurrent audit
D. Both (A. and (B.
E. All of the above
Auditing is what:
A. Reporting the financial information
B. Examination of financial statements
C. Preparation financial statements
D. maintaining the ledger records
The current file of the auditor’s working papers, generally, should include:
A. A flowchart of the internal controls
B. Organisation charts
C. A copy of financial statements
D. Copies of bond and debentures
Audit programme is prepared by:
A. The auditor
B. The client
C. The audit assistants
D. The auditor and his audit assistants
The nature, timing and extent of substantive procedures is related to assessed level of control risk:
A. Randomly
B. Disproportionately
C. Directly
D. Inversely
Institute of Chartered Accountants of Pakistan was established in:
A. 1949
B. 1956
C. 1961
D. 1972
Errors of Omission are:
A. Technical errors
B. Errors of principle
C. Compensating errors
D. None of the above
Internal check is carried on by:
A. Staff specially appointed for the purpose
B. Internal auditor
C. Supervisor of the staff
D. Members of the staff
Audit in depth is synonymous for:
A. Complete audit
B. Completed audit
C. Final audit
D. Detailed audit
Concurrent audit is a part of:
A. Internal check system
B. Continuous audit
C. Internal audit system
D. None of these
Audit of banks is an example of:
A. Statutory audit
B. Balance sheet audit
C. Concurrent audit
D. All of the above
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