MID-TERM TEST FOR AUDITING (2)

Usually, auditors need to use their ............. to determine whether the differences identifed through applying analytical procedures are worth investigating further.

• decision

• tool

• judgement

• examination

Confirmations are documents sent by auditors to ............ parties to confirm their balances with the cilent.

• internal

• external

• related

• third

When an audit engagement begins, the company being ..... agrees to provide auditors with the right to obtain information that is relevant to the preparation of the financial statements or the purpose of the audit.

• auditing

• audited

• audition

• to audit

For almost all companies, assets are an important part of their financial statements. Auditors must, therefore, ........... audit procedures on those assets to ensure their existence.

• do

• make

• perform

• examine

.............. are the processes of evaluating financial information through analysis of trend, ratio or relationship between data including both financial and non-financial data.

• analytical procedures

• recalculation

• inquiry

• scanning

The organized crime groups may be organized professionally or may be groups of individuals who ............... in a particular type of crime.

• specialization

• specializes

• special

• specialize

Errors of omission are .....

• technical errors

• error of principle

• compensating error

• none of the above

A person's position in terms of their responsibilities and authority also contribute to the opportunity to ..... fraud

• get

• supply

• commit

• make

When entries made in the books of original entry or legder are incorrect either wholly or partially, such errors are the errors of .....

• compensating

• duplicating

• omission

• commission

When a transaction is recorded twice and also posted twice in the ledger, such an error will not affect the trial balance. Such errors are known as errors of ..............

• compensating

• duplication

• omission

• commission