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WorksheetsINTRODUCTION TO AUDITING
Total questions: 15
Worksheet time: 10mins
AUDIT PURPOSE :
Controls on spending and activities of a department of ministry
To determine the efficiency of public monies allocated in budget.
Statement that specifies the focus, extent and boundary of
Involves the physical location of the audit, the organizational units that will be examined, the process & activities that will be included & time period that will be covered
AUDIT CONCEPT:
To fulfil the ethical requirements of the profession
Auditor must be independent of the preparer of the financial statements
Process of examine the financial statement and information of entity
to ensure that all the accounting records and evidence are valid and truthful
IMPORTANCE OF AUDITING IN ORGANIZATION :
Identifying and correcting errors will help the management to take action and precaution in the future
Process of examine the financial statement and information of entity
To fulfil the ethical requirements of the profession
Safeguarding assets will help an organization to operate smoothly and efficiently
External audit is audit conducted by one company on another company
True
False
Audit is an evaluation conduct by human, either by one person or in a group of people.
True
False
Which of the following are components of the
definition of internal auditing?
Independence and objectivity.
A systematic and disciplined approach.
Helping the organization accomplish its
objectives.
All of the above.
Internal auditors must have competent
interpersonal skills. Which of the following does not
represent an attribute of interpersonal skills?
Communication.
Leadership.
Project management.
Team capabilities.
These are the types of audit:
Internal Control
Financial Statements
Constitution
Applications
Special
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
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
SIMILARITY IN TYPES OF AUDITOR (ROLES):
an audit is rendering of independent and expert opinion on the financial reports of an organization.
Focus more on the compliance to procedures and on the proper use of the cash and other assets placed under the care of the department.
Examine issues related to company business practices and risks
Examine the financial records and issue an opinion regarding the financial statements of the company
