Audit & assurance I

  Auditor normally report whether account give a ___________ & __________view.

• True , Fair

• Fair , absolute true

• True and absolute

Which of the following financial statements normally auditors’ perform auditing?

• Income statement, Statement of financial position, Statement of Cash flow, SOCIE

• Income statement, Bank statement, Statement of Cash flow, Statement of expense

• Statement of changes in equity (SOCIE), Cash flow statement, Income statement

What assertion for “Examine a sample of cash receipts and payments transactions for proper classification.”

• Classification

• Existence

• Valuation

• Completeness

Which risk auditor need to detect while performing audit?

• Detection risk (DR)

• Inherent risk (IR)

• Control risk (CR)

Examples of cash equivalents include time deposits, certificates of deposit, and marketable securities

• True

• False

A company may become insolvent if it

• makes a loss

• has negative working capital

• cannot pay creditors in full after realisation of its assets

• cannot meet its budgeted level of profit

What auditing technique will an auditor may apply while auditing in computerized environment?

• Round the machine

• Through the machine

• Round and though the computer

What is the analogy of the internal control system?

• The traffic lights at a cross-road junction

• A police officer at a cross-road junction

• both is applicable

What result will an auditor expect if there is implemented a good internal control system in a business?

• Higher control risk

• Lower detection risk

• Lower control risk

External audit of the accounts of a listed company is required

• at the discretion of the shareholders

• because it is demanded by the company’s bankers

• by the Companies Act 2016

• to detect fraud