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A. Blood haunt
B. Watchdog
C. May both according to situation
D. None of these
Answer
Answer
B. Watch dog
Submitted by: Rasool Bux
Process of verifying the documentary evidences of transactions are known as___________?
A. Auditing
B. Testing
C. Vouching
D. Verification
Answer
Answer
C. Vouching
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Auditing is compulsory for____________?
A. Small scale business
B. Partnership firms
C. Joint-stock Companies
D. Proprietary Concerns
Answer
Answer
C. Joint-stock Companies
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Concealment of shortage by delaying the recording of cash receipts is known as__?
A. Embezzlement
B. Misappropriation
C. Lapping
D. None of these
Answer
Answer
C. Lapping
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How long is the auditor’s term of office?
A. Until the audit is complete
B. Until the financial statements are complete
C. Until the next AGM (Annual General Meeting)
D. Until the directors remove them
Answer
Answer
C. Until the next AGM (Annual General Meeting)
Submitted by: Rasool Bux
Audit risk is composed of 3 factors. Which of the following is NOT one of those factors?
A. Compliance risk
B. Detection risk
C. Control risk
D. Inherent risk
Answer
Answer
A. Compliance risk
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Which of the following should NOT be considered at the planning stage?
A. The timing of the audit
B. Analytical review
C. Last year’s written representation letter
D. Obtaining written representations
Answer
Answer
D. Obtaining written representations
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Which of the following is NOT an accepted method of selection in sampling?
A. Systematic selection
B. Pervasive selection
C. Random selection
D. Haphazard selection
Answer
Answer
B. Pervasive selection
Submitted by: Rasool Bux
According to ISA 500, the strength of audit evidence is determined by which two qualities?
A. Appropriateness & competence
B. Sufficiency & appropriateness
C. Reliability & extensiveness
D. Objectivity & independence
Answer
Answer
B. Sufficiency & appropriateness
Submitted by: Rasool Bux
Which of the following is normally the most reliable source of audit evidence?
A. Internal audit
B. Suppliers’ statements
C. Board minutes
D. Analytical review
Answer
Answer
B. Suppliers’ statements
Submitted by: Rasool Bux