Audit Mastermind Quiz

Which of the following is the primary objective of an audit?

• Detection of fraud

• Expressing an opinion on financial statements

• Preparation of financial statements

• Tax computation

Who appoints the first auditor of a company?

• Shareholders

• Board of Directors

• Government

• SEBI

What does the term "true and fair view" in auditing refer to?

• Legal compliance only

• Exact accuracy in financial statements

• Presentation of financial statements fairly and accurately

• Elimination of all fraud

Which of the following is NOT an inherent limitation of an audit?

• Dependence on sampling

• Risk of fraud

• Auditor's bias

• Use of independent evidence

Which standard deals with audit documentation?

• SA 200

• SA 210

• SA 230

• SA 240

The primary responsibility for the prevention and detection of fraud rests with:

• Management and those charged with governance

• The auditor

• Shareholders

• Government regulators

What is the purpose of an internal audit?

• To replace external audit

• To improve internal controls and efficiency

• To determine tax liability

• To detect all frauds in the company

Which type of audit is conducted to check compliance with laws and regulations?

• Financial audit

• Compliance audit

• Performance audit

• Tax audit

Which of the following is an example of an audit procedure?

• Financial reporting

• Budget preparation

• Inquiry and confirmation

• Decision making

The statutory auditor of a company is required to comply with which auditing standards?

• Generally Accepted Accounting Principles (GAAP)

• International Accounting Standards (IAS)

• Standards on Auditing (SA)

• Financial Reporting Standards (FRS)