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WorksheetsTUGAB CUP-Easy Round
Total questions: 10
Worksheet time: 4mins
Auditing is based on assumption that financial data and statements are
In conformity with GAAP
Verfiable
Presented fairly
Consistency applied
Before accepting an audit engagement, the independent auditor is required to obtain
A detailed understanding of client's business, operations and processes
A management representation letter from the prospective client
A preliminary understanding of client's business, operations and processes
An understanding of the significant movements in client accounts
To maximize their effectiveness, the internal audit department should not report to the
Controller
President
Management
Board of Directors
BTS Corporation's checkbook balance at December 31, 2019 was P180,000. In addition, BTS held the following items in its safe on that date:
*Check payable to BTS dated January 2, 2020 in payment of a sale made in December 2019, included in December 31 checkbook balance - P85,000
*Check payable to BTS deposited December 15, but returned by the bank DAIF - P10,000
*Check drawn on BTS account, payable to a vendor, dated and recorded on December 30 but not yet mailed to payee as of December 31, 2019 - P15, 000
What is the correct cash balance of the corporation?
130,00.00
100,000.00
90,000.00
110,000.00
The assumption underlying an audit of financial statements is that they will be used by
The regulatory agencies to verify information that is relevant to their supervisory functions.
The board of directors as basis of declaring cash dividends.
The general public in making investment decisions.
Different groups for different purposes
What is the relationship between the level of audit risk and materiality?
Linear
Inverse
Directly proportional
No relation at all
Which of the following is most likely to be an overall response to fraud risks identified in an audit?
Only use certified public accountants on the engagement
Place increased emphasis on the audit of objective transactions rather than subjective transactions
Use less predictable audit procedures
Supervise members of the audit team less closely and rely more upon judgement
During the audit of Kathniel Company on December 31, 2020, the following data are gathered:
Balance per book- 4,000,000
Bank Charges- 10,000
Outstanding checks- 950,000
Deposit in transit- 1,200,000
Customer note collected by bank- 1,500,000
Interest on customer note- 60,000
Customer check returned NSF Depositor's note charged to account- 1,000,000
The correct cash balance amounts to
3,700,000
3,400,000
4,000,000
4,300,000
_________ is the processing of real data through audit programs, with the simulated output and regular output compared for control purposes.
Access Control
Data Processing
Audit Trail
Parallel Simulation
The provision of all laws or regulations have a direct effect on the financial statements in that they determine the reported amounts and disclosures in an entity's financial statements.
TRUE
FALSE
