Auditing Quizzes

Which account is the most relevant for completeness assertion?

• Cash and cash equivalent

• Fixed assets

• Accounts payable

What audit procedure is the most relevant to cover valuation assertion in property, plant and equipment (fixed assets) accounts?

• Vouching of addition of fixed assets

• Depreciation test

• Foreign exchange test

What percentage of profit before tax will be used when determine audit materiality if the Company plan to going public?

• 5%

• 10%

• 15%

Which one is correct?

• IR = AAR x CR x PDR

• AAR = IR x CR x PDR

• CR = AAR x PDR x IR

The overall materiality level at the individual account or balance level, is the definition of?

• Tolerable Error

• Planning Materiality

• SAD Nominal Amount

What audit procedure is the most relevant to cover existence assertion in PPE?

• Vouching additional PPE

• Tie up to fixed asset register

• Depreciation test

When the audit risk is higher, what is the impact on the size of audit evidence that we should obtain?

• Larger

• Smaller

• No effect

In relation with the audit of financial statements, in which part the IT Audit Team will involve during the audit process?

• Business risk assessment

• Control risk assessment and test of control

• Substantive test

“I’m only borrowing they money; I’ll pay it back”. Based on the Fraud Triangle categorized as?

• Pressure

• Rationalize

• Opportunity

Which is the correct sequence of audit process?

1. Plan and design an audit approach

2. Complete the audit and issue an auditor report

3. Perform analytical procedures and test of details of balances

4. Perform test of controls and substantive tests of transactions

• 4, 3, 1, 2

• 1, 4, 3, 2

• 1, 3, 4, 2