C) the legislature. Each of the three parties involved in an audit ……………………. Engineering 2021 , Engineering Interview Questions.com, AUDITING Objective type Questions with Answers. C) income and expenditure accounts where appropriate. Answer: A, 25. A) make written representations. A) the government company itself. Answer: B, 53. B) liabilities D) MANAGEMENT INCENTIVE SYSTEM BASED ON SALES DONE IN A QUARTER, 62. A) Economic audit. D) registration (certification) WHICH OF THE FOLLOWING FACTORS LIKELY TO BE IDENTIFIED AS A FRAUD FACTOR BY THE AUDITOR? It will also compare price points for the company’s product with those of the competition. Audit of rent, deposits and remittances does not cover ____________. D) preparing final accounts. The work of one clerk is automatically check by another clerk is called _________. D) co-operative societies C) VOUCH GOODS SENT ON APPROVAL VERY CAREFUL Y B) expected results 63. C) six years. D) NO DOCUMENTATION IN REQUIRED. B) efficiency cum performance audit. * Periodical audit is conducted after the preparation of final account. Income statement audit. D) the debenture holders. B) manufacturing Sale of land is a __________. B) obtain knowledge of matters that relate to the nature of entity business. A) Section 226(1) and Section 226(2). D) take help of other auditors. 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) to verify the assets and liabilities. C) Adjusted interim financial statement. In India balance sheet audit is synonymous to _______________. C) the restatement of sales. Auditor is in possession of the full facts relating to accounts for the year under review. B) ACTS TO BE PERFORMED A) the client, the auditor, and the auditeer 65. A) Bank statements obtained from the client B) A person of unsound mind. Which of the following is not a fact of EPA? a) Audit of accounts at the end of the year. Audit standards and reference documents used B) The shareholders are authorized to do so I’ve seen SEOs who can whip up a killer link audit. A. A) reasonably honest. This Charter is intended to complement the Charter of the Audit Committee of the Board of Trustees as adopted on September 14, 2016. In part, the law replaced the auditing and tax collection procedures for partnerships under the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) and the electing large partnership rules with the centralized partnership audit regime. When at an annual general meeting of a company no auditor is appointed or reappointed. C) Carbon copies of sales invoices inspected by the auditor C) the managing director of the company appoints a person to fill the vacancy. Cost audit under section 233(b) of the companies act is ___________. B) the C & AG. WHICH OF THE FOLLOWING INFORMATION SHOULD A SUCCESSOR AUDITOR OBTAIN DURING THE INQUIRY OF? b audit for an intermediate period audit carried out at specified intervals within the year interim audit is an audit conducted during the fiscal year usually as a means of minimizing the work and time ... Periodical audit is also called as ----? B) the central government. D) omission of a sales transaction from being recorded. A petition audit is an audit of a political subdivision (typically a local government entity), which is conducted at the request of registered voters who live within its boundaries. 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 Answer: A, 40. D) to the general public. I. Balance sheet audit is very popular in the United States of America. The main object of the audit of the cash book may be ________. B) Management representation letter. [A] Continuous audit. Share may be issued _____________. C) banking The board of directors shall appoint first auditor of a company ___________. C) EXPECTATION OF RECEIVING A WRITTEN MANAGEMENT REPRESENTATION LETTER. Answer: A, 34. B) to prevent errors and frauds. C) DOCUMENT MATERIAL FRAUD, RISK FACTORS AND RESPONSE TO THEM. C) the issue of debenture. D) audit of expenditure. Answer: D, 28. B) quality A) Civil Learning Materials For Accounting, Management , Business And Economics. 114-74) was signed into law on November 2, 2015. D) Sales C) the audit assistants. The final report includes a summary of the procedures and techniques used for completing the audit, a description of audit findings, and suggestions for improvements to … 67. D) It helps to accumulate evidence supporting the validity of a specific account balance The audit was performed by OPM’s Office of the Inspector General, as authorized by the Inspector General Act of 1978, as amended. A) fictitious asset. A) unlimited liability. C) Preliminary A) THE COMPANY IS PLANNING AN INITIAL PUBLIC OFFER OF QUALITY SHARES TO RAISE ADDITIONAL CAPITAL FOR EXPANSION. B) at premium. 5. Final audit.B. D) the debenture holders. C) be heard at the meeting. In the case of such an audit, the auditor visits the client only once a year and goes to the accounts units audit work for that whole of the period is completed. A) to discover errors and frauds. Is the primary purpose to conduct a survey (also called an audit) for benchmark data or is it troubleshooting for a potential PQ-related problem? Secret reserve can be created by _______________. A) public limited company only B) Interim audit. D) Prior year financial statements. Answer: D, 44. 71. Duration of audit. C) ENSURE AUDIT FEES IS CHARGED ACCORDING TO THE TYPE OF AUDIT WORK ASSIGNED Answer: C, 42. THE RISK OF MANAGEMENT FRAUD INCREASES IN THE PRESENCE OF: A) FREQUENT CHANGES IN SUPPLIES Answer: A, 15. Audit Programme is prepared by ___________. Answer: C, 54. Which of the following is not an advantage of the preparation of working paper? B) Documents obtained by auditor from third parties directly. His remuneration is fixed by _____________. A) He is removed at a general meeting. 10. Which of the following statement is not correct regarding removal of first auditor before expiry of the term? B) Internal check. A) voluntary In response to the OSA audit, EDA submitted a corrective action plan (CAP) to address OSA’s recommen dations. Confirmation of the court is necessary for __________. B) To provide a basis for subsequent audits ... called the generally accepted ... A taxpayer may also be selected for an audit … The corrective actions included additional reporting requirements. 2. A) Final audit. D) Both A & B. Give it a try and choose the right answer according to you for each question. The audit final report should include, at a minimum, the following: C) Expenditure audit. Determination of proper corrective action(s) Answer: C, 14. B) Chartered accountant. B) five years. C) compliance B) the shareholders. The time required and costs involved in an external audit are much higher as compared to internal audits. B) Balance sheet audit. Marketing strategy audit. Answer: A, 48. 3. Audit definition is - a formal examination of an organization's or individual's accounts or financial situation. A) four years. C) audit of sanctions Answer: C, 37. C) to check the internal control system in business. The retiring auditor does not have a right to _________. Answer: B, 23. [C] Interim audit. Answer: C, 27. Answer: B, 31. Verification of the value of assets, liabilities, the balance of reserves, provision and the amount of profit earned or loss suffered a firm is called _________. The auditor of a government company shall be appointed by _____. Auditor of a _______ company does not have right to visit foreign branches of the company. Answer: B, 36. a) Final audit b) Internal audit c) Company audit d) Statutory audit 33. D) all the above. A) the government company itself. WHICH OF THE FOLLOWING STATEMENTS IS CORRECT CONCERNING THE REQUIRED DOCUMENTATION IN? C) advisable C) not necessarily honest. WHICH OF THE FOLLOWING IS NOT A QUALITY CONTROL CONSIDERATION ON ACCEPTING A NEW CLIENT? Answer: B, 18. Critical nonconformities and other observations D) none of the above. A vacancy caused by resignation of an auditor is filled by _________. D) all the above 8. Answer: B, 19. Answer: D, 55. A) the memorandum of association and articles of association. a) Financial audit b) Efficiency audit c) Cost audit d) Cash audit 32. Differences Between Internal Audit And Statutory A... Concept Of Routine Checking, Its Advantages And Di... Concept Of Test Check, Its Advantages And Disadvan... Concept Of Internal Control And Its Advantages, Essential Characteristics Of Internal Check System, Concept, Objectives And Advantages Of Internal Audit, Advantages And Disadvantages Of Management Audit, Concept, Functions And Objectives Of Management Audit. A) the BOD of the company A) Continuous audit. B) Criminal evanrosenthal. C) PREDECESSOR AUDITOR’S ADVICE AS TO WHETHER AUDIT FEES WERE PAID PROMPTLY When the auditor is an employee of the organization being audited (auditee), the audit is classified as an …….. quality audit. 64. C) examination of books, accounts, vouchers etc. D) all of the above. B) the board of directors appoints a person to fill the vacancy. Marketing Strategy. C) THE RESTATEMENT OF SALES THE USE OF AN AUDIT ENGAGEMENT LETTER IS THE BEST METHOD OF ASSURING THE AUDITOR WILL HAVE WHICH OF THE FOLLOWING? D) the auditor and his audit assistants. D) speak as a member of the company. D) AAS-3. WORKING PAPERS OF FRAUD RISK ASSESSMENT UNDERTAKEN BY THE AUDITOR. Such audits are often called ‘safety system audit’, ‘process safety audit’, ‘product safely audit’, ‘service safety audit’. D) Section 242(B). The planning for these audit procedures takes place over the course of audit as the audit plan for the engagement develops. For the benefit of the organisation, quality auditing should only report non-conformances and corrective actions, but should not highlight areas of good practice. Marketing systems audit. Answer: D, 39. But to maintain the standards and efficiency and quality, a periodic audit, not only of the performance of the individual judges but also the performance of the system as such is required. D) TAKE HELP OF OTHER AUDITORS, 74. B) BANK RECONCILIATION STATEMENT INCLUDES DEPOSITSINTRANSIT. D) THE COMPANY HAS MADE POLITICAL CONTRIBUTIONS. D) the client, the auditor, and the auditee. But it’s also useless unless you actually do something about it! The statutory auditor of a Government Company submits his report to _________ C) Shareholders B) Balance sheet audit. C) SUBSTANTIAL INCREASES IN SALES A) revenue receipt. Acceptable Audit Risk Inherent Risk Control Risk. A) Auditor will obtain sufficient appropriate audit evidence. Audit of banks is an example of __________. B) banking and financial companies only. D) control risk. A) VISIT LOCATION ON SURPRISE BASIS TO OBSERVE TEST COUNTS C) Balance sheet audit. Answer: C, 57. D) None of the above. B) Interim audit. The audit also found LANL to be compliance with all other requirements of Subpart H of 40 CFR 61 and related Appendixes. 5. THE USE OF AN AUDIT ENGAGEMENT LETTER IS THE BEST METHOD OF DOCUMENTING, I) THE REQUIRED COMMUNICATION OF SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROL B) Section 224(1) and Section 224(2). A) It helps to study relationship among balance sheet accounts. C) statutory meeting. Continuous Audit C) within one month of the commencement of the business of the company. (2) involves a suitability audit of the documented procedures against the selected reference standard. An information technology audit, or information systems audit, is an examination of the management controls within an Information technology (IT) infrastructure.The evaluation of obtained evidence determines if the information systems are safeguarding assets, maintaining data integrity, and operating effectively to achieve the organization's goals or objectives. C) AAS-9. D) within one month of incorporation of the company. Answer: A, 52. D) floating asset. Answer: C, 58. B) Efficiency audit. B) preparing the final accounts. I) INFORMATION ABOUT INTEGRITY OF MANAGEMENT D) METHODS OF WORK. Answer: D, 29. B) to know that all receipts and payments have been properly recorded. A) a general meeting. Answer: D, 35. C) Mr. Y who owes Rs. B) the client. Answer: B, 17. D) Partial audit. AUDITING STANDARDS DIFFER FROM AUDIT PROCEDURES IN THAT PROCEDURES RELATE TO, A) AUDIT ASSUMPTIONS C) Balance sheet audit. Internal Auditing Chapter6 64 Terms. D) None of the above. C) capital expenditure. It may also commence before the final accounts are prepared and continue till the audit is completed even after the close of the financial or trading period. CHARACTERISTICS, A) TAX EVASION Answer: C, 33. Answer: D, 47. A) the C & AG. Which of the following Auditing Assurance Standard deals with Audit planning? b) Finally checking of accounts to reveal frauds. 69. B) external D) Mr. Z the holder of C.A certificate. 1. Differences Between Auditing And Investigation, Differences Between Auditing And Accounting, Methods Of Detecting Errors While Auditing. B) get his representation circulated. C) Interim audit. D) Section 224(3) and Section 224(4) To know whether the organization has maintained regularity at the time of maintaining books of accounts. D) seven years. For existing audit statements (e.g. C) to the bank. D) avoidable C) Section 226(3) and Section 226(4). Answer: D, 41. A) Annual audit. 2 The audit typically applies to, but is not limited to. B) The auditor remuneration. 4. c) Audit for submitting report immediately at the end of the year. - An audit can be an internal audit (first party), or external audit (second party or third party), and it can be a combined audit or a joint audit. 8. 9. Internal auditor of a company must be _______________. D) preliminary results. The plan is modified during the year as necessary to respond to unanticipated requests and issues. D) issue of new shares. Which of the following sections deals with qualification of the auditor? Audit execution: The execution phase of an audit is often called the fieldwork. d) Audit of banking companies. C) Civil and Criminal. This final audit report details the findings, conclusions, and recommendations resulting from our performance audit of the U.S. Office of Personnel Management’s (OPM) common services methodology. ASSESSMENT THAT THE RISK OF MATERIAL MISSTATEMENT DUE TO FRAUD IS HIGH IN RELATION TO EXISTENCE OF INVENTORY? D) COOPERATION FROM OTHER AUDITORS, 72. Answer: D, 12. THE MOST DIFFICULT TYPE OF MISSTATEMENT TO DETECT FRAUD IS BASED ON: A) RELATED PARTY PURCHASES B) auditor experience and professional judgement. D) Co-operation from other auditors B) client B) IMPROVED INTERNAL CONTROL SYSTEM The most difficult type of misstatement to detect fraud is based on __________. D) sequential. B) SYSTEM OF DETERMINING AUDIT FEES A) AAS-7. A forensic audit is also needed to have a proper plan, procedure, and report like other audit engagement. D) REVIEW OF AUDIT WORK DONE BY ONE PARTNER BY THE OTHER, 77. Answer: A, 50. When a transaction has not been recorded in the books of account either wholly or partially such errors are called as _________. 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. C) ACCESS TO ALL BOOKS, ACCOUNTS AND VOUCHERS REQUIRED FOR AUDIT PURPOSE B) RELATED PARTY SALES A) at par. C) To ensure audit work is being carried out as per Programme. C) Concurrent audit. D) to check the bank balance. This is the most satisfactory types of audits from auditor’s point of view and is usually adopted where practicable particular in the case of small concern however … D) All of the above. Special audit is conducted at the order of the central government. Balance sheet audit is an annual audit and it covers each and every item of nominal accounts as appeared in profit and loss account, assets, liabilities, reserves, provisions, stocks and surplus. Forensic audit also needs to follow ethical guideline like an audit of financial statements.This kind of engagement is not so popular as an audit of financial statements or statutory auditing. In case the directions fail to appoint first auditors, the shareholders shall appoint them at _______ by passing a resolution. D) need not possess any professional qualification. Characteristics of audit b) Smaller concerns An auditor's statement that he/she has reviewed the financial statements of a company and believes that they are accurate, complete, and in accordance with Generally Accepted Accounting Principles.Most of the time, a publicly-traded company's annual report contains an accountant's opinion; a report without one can be a matter of concern to investors. Meaning, Advantages And Disadvantages Of Continuous Audit, Advantages And Disadvantages Of Interim Audit, Audit On Behalf Of Different Types Of Partners, Audit Of Non Governmental Organizations(NGOs). D) Computations made by the auditor. Answer: C, 60. B) capital receipt. Q: The 2003 audit of a calendar year client will be the last audit of that client for the person currently serving as the "lead" partner. Answer: B, 26. Preliminary expenses are the best example for _________. Answer: Option [B] (choose the one NOT required), 1. C) internal auditor B) PROVISION OF OTHER SERVICES TO THE CLIENT WHICH MAY IMPAIR INDEPENDENCE Management audit otherwise called as _____. C) the client, the moderator, and the auditee The ……… is also expected to provide the resources needed and select staff members to accompany the auditors. A) AL RISK FACTORS AS MENTIONED IN AAS4, SHOULD BE CONSIDERED AND DOCUMENTED ALONG WITH RESPONSE TO THEM. B) It helps to discover material misstatements in the financial statements. C) ADOPTION OF CONSERVATIVE ACCOUNTING PRINCIPLES B) the client, the auditor, and the audite B) audit of amortization of debt. A) internal judgement, the auditor has to decide about the appropriate audit process opinion and report this de-cision to the management and to those charged with governance. 23. To seal the deal with your link audit, the final 15 minutes will be the most valuable. B) the share transfer register. An auditor who accepts an audit but does not posses the industry expertise of the business entity should ______________. Answer: D, 49. Balance sheet audit is also done by highly-skilled accountants. 7. 4. C) CONSULTATION WITH EXPERTS Identification of involved parties: auditor, auditee, and third party 6. C) Internal audit. B) EVALUATE THE APPROPRIATENESS OF AUDIT EVIDENCE OBTAINED C) audit of receipts. , 1971 the tenure of the year engagement develops MANAGEMENT ( system ) ). Designed and operating as intended in the books of account either wholly or partially such errors are called _________. 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