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WorksheetsPrinciples and Practices of Auditing
Total questions: 58
Worksheet time: 34mins
Before the work of audit is commenced, the auditor plans out the whole of audit work is called _________.
Audit plan
Audit note
Audit programme
Audit report
Auditing standards differ from auditing procedures in that procedures relate to ________.
Measure of performance
Audit principles
Acts to be performed
Audit judgments
3.At the planning stage you would NOT consider
the timing of the audit
whether corrections from the inventory count have been implemented
last year’s audit
the potential use of internal audit
Which of the following are you unlikely to see in the current file of auditors’ working papers?
Memorandum & articles of association
Audit planning memorandum
Summary of unadjusted errors
Details of the work done on the inventory count
. is the specific guidelines and directions for efficient and effective completion of the audit work on timely and daily basis, so as to minimise audit risk.
Audit planning
Audit report
Audit programme
Audit certificate
Auditor has no lien on
Audit note book
Audit working papers
Books of accounts of clients
All of the above
The objective of the audit planning is
To give appropriate attention to all important areas of audit
To identify potential problems
c)To coordinate work with other auditors and experts
c) All of the above
Audit papers are the property of
Client
Auditor
Both the client and the auditor
The audit committee
--------followed by the enterprise affect the audit plan
Accounting policies
Audit policies
Accounting and Audit policies
Management policies
While framing an audit plan auditor should ascertain his cast by various legislations on him.
Limitations
Duties and obligations
Rights and powers
Term of appointment & responsibilities
An audit programme is a set of which are to be followed for proper execution of audit.
Rules
Policies
Instructions
Actions
Audit programme provides instructions to the audit staff and reduces scope for
Understanding
Misunderstanding
Negligence
Liabilities
Audit programme helps in fixing the for the work done among the audit staff as work done may be traced back to the individual staff members
Remuneration
Liabilities
Negligence
Responsibility
On completion of an audit serves the purpose of audit record which may be useful for future reference.
Audit programme
Audit working papers
Audit plan
Audit notes
Audit programme is prepared by
The auditor
The client
The audit assistant
The auditor and his audit assistants
Working papers helps in proper of audit
(a)
Auditor’s report is the expert’s opinion expressed by the auditor as to the fairness of
(a)
The Auditors Working Papers are divided into two parts
Permanent audit file and current audit file
b)Permanent audit file and temporary audit file
temporary audit file and current audit file
current audit file and transitory audit file
Auditor report is addressed to the members of the company and is considered at the of the company.
Board Meeting (BM)
Annual General Meeting (AGM)
Extraordinary General Meeting (EGM)
All of the above
A fixed audit programme is also called a programme
(a)
A progressive audit programme is also called a
Tailor made
Man made
Auditor made
Skeleton
Current audit file consists of
Matters of future importance
a)Matters relations to post years
Matters relating to the year of audit
All of the above
Essentials of good audit report includes
Simplicity
Clarity
Firmness
All of the above
The audit firm should implement _________ policies to ensure all audits are conducted in accordance with Audit and Assurance Standards.
Detection Control
Quality control
Management control
Internal control
The auditor gives a report when he is unable to give an opinion on the financial statement taken as a whole, but he believes that he can express an opinion on certain items in the statements
(a)
The firm‟s quality control ________ should be effectively communicated to its personnel.
Standards
Policies and procedures
Requirements
All of the above
The auditor shall assemble the audit documentation in an audit file within ____ days of completion of audit.
60 days
90 days
180 days
30 days
Engagement Team means all personnel performing _____
Audit
Accounting
Engagement
All of the above
Process of collecting and preparing working papers is known as (a) .
(a) documents are more reliable than mere photocopy.
_______ is the file containing the records and data that compromise the audit documentation for a specific engagement
Audit file
Engagement file
Working file
Client's file
Working papers should be preserved for (a) years
Designing a ________ is the backbone of „Audit Planning‟ process.
Audit plan
Organization
Audit strategy
Budget
Accounting estimates are highly dependent on ________
Expert
Management
Judgment
Past judgment
Depending upon nature audit evidence can be classified as
Visual evidence
Oral evidence
Documentary evidence
All of these
Which of the following is not internal audit evidence?
Bank Reconciliation Statement
Bank Statement
Copy of Sales Invoice
Voucher
Which of the following is not an advantage of the preparation of working paper?
To provide a basis for review of audit work
To provide a basis for subsequent audits
To ensure audit work is being carried out as per programme
To provide a guide for advising another client on similar issues
Which of the following best describes the primary purpose of audit programme preparation?
To detect errors
To comply with GAAP
To gather sufficient appropriate evidence
To assess audit risk
The quantity of audit working papers complied on engagement would most be affected by
management’s integrity
auditor’s experience and professional judgment
auditor’s qualification
control risk
When going concern assumption is appropriate, Auditor‟s opinion should be
Modified opinion
Adverse opinion
Unqualified opinion
Unmodified opinion
What is an internal audit?
Check, compare, communicate and consult.
Check, compute, communicate and consult.
Cheat, compare, communicate and consult.
Check, compare, community and consult.
To ensure independence, it is important for internal auditors to be part of the management hierarchy.
True
False
What do Internal Auditors do?
Determining if entities are not complying with applicable laws.
Preparing financial statement and ensure its accuracy and proper treatment.
One option is correct.
Both options are correct.
The following(s) is/are core principles for the Professional Practice of Internal Auditing:
Demonstrates integrity.
Communicates efficiently.
Is subjective and free from undue influence .
All options are correct.
Quality in internal audit begins with the ___________ and organization of the audit activity.
structure
vision
mission
risk
What are the benefits of quality assurance for internal auditors
Obtaining best-practice recommendations and benchmarks.
Continuous improvement.
Both options are correct.
Both options are incorrect.
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.
Within the context of internal auditing, assurance
services are best defined as:
Objective examinations of evidence for the
purpose of providing independent assessments.
Advisory services intended to add value and
improve an organization's operations.
Professional activities that measure and
communicate financial and business data.
Objective evaluations of compliance with policies,
plans, procedures, laws, and regulations.
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.
Audit it covers all the areas of business
General Audit
Specific Audit
Complete Audit
Interim Audit
Audit of Accounts of Government Departments
Complete Audit
Government Audit
Internal Audit
External Audit
Is an Audit which is conducted in between two annual Audits
Complete Audit
Internal Audit
External Audit
Interim Audit
Written opinion by a Auditor
Audit Note Book
Audit programme
Audit Report
All the above
A detail plan of the Auditing work to be prepared
Audit Note
Audit Programme
Audit Report
Auditor
Is a Register Maintained by the Audit staff to record important points observed while doing Auditing
Audit Note Book
Book keeping
Book
All the above
The First Auditors of a Company is Appointed by the
Manager
Board of Directors
Employee
Auditor
An auditor should act professionally, accurately and in an unbiased manner.
True
False
Which of the following is the principles of auditing?
Due professional care
Confidentiality
Evidence based approach
Objectivity
