Auditing - Introduction

Which of the following does not describe the definition of audit?

• Examination of various books of account to ensure following correct standards

• Physical checking of inventory to ensure all departments following documented system of recording transactions

• Evaluating clientele to measure the ability to expand the business

• Enhancing the credibility of financial statements

These are the types of audit:

• Internal Control

• Financial Statements

• Constitution

• Applications

• Special

Which of the following is the correct flow of audit process?

• Understand the entity, planning, tests of control, preliminary engagement, establish materiality, evaluate results, complete the audit

• Preliminary engagement, understanding the entity, establish materiality, planning, test of control, complete the audit, evaluate results

• Understand the entity, preliminary engagement, planning, establish materiality, tests of control, evaluate results, complete the audit

• Preliminary engagement, planning, establish materialitiy, tests of control, evaluate results, complete the audit

Which of the followings are not the types of auditor?

• Financial auditor

• Company auditor

• External auditor

• Governmental auditor

'An approved company auditor is a qualifies person approved by the Ministry of Finance to act as an auditor, is a good of ............... to perform duties of an auditor under the CA Act.' Which of the followings fit the blank?

• attitude and honest

• knowledge and reliable

• personality and dutiful

• character and competent

When the directors of company should appoint an auditor?

• During Emergency General Meeting

• Before First Annual General Meeting

• Every Annual General Meeting

• After Board of Directors Meeting

Which of the followings are not the power or rights of auditors in S174(4-9)?

• A right to make oral representation when company propose to dismiss him as an auditor

• A right to attend any general meetings that concerns him as an auditor

• A right to information and explanation he considers necessary

• A right to access at all times to the books and records

'Special notice of ordinary resolution has been given and on receipt of special notice, the company must send a copy to the auditor concerned and CCM.' This is describing the procedure for

• auditor appointment

• auditor dismissal

• auditor resignation

• auditor responsibility