WorksheetsAudit 1 | Revision 1
Total questions: 15
Worksheet time: 5mins
What is an audit?
Check, compare and community.
Check, compute and communicate.
Check, compare and communicate.
Cheat, compute and communicate.
Suitable criteria exhibit the following characteristics:
Relevance
Completeness
Both options are correct.
Both options are incorrect.
"To determine whether recorded information properly reflects the economic events that occurred during the accounting period." This statement best describes:
Accounting
Auditing
Financing
2 options are correct.
The following statement(s) is/are correct pertaining to principal & agent relationship:
Agents employ directors and managers to conduct the business.
There is rarely information asymmetry in the principal & agent relationship.
The shareholders assume a stewardship function.
None of the option is correct.
Concept of ______________________ is used to express the auditor’s opinion.
materiality
true and fair view
professional judgement
professional scepticism
The auditor’s opinion on the financial statements is based on the concept of obtaining _________________ assurance.
absolute
professional
reasonable
judgemental
It is the duty of an auditor of a company to form an opinion as to each of the following matters:
whether he has obtained all the information and explanations that he required.
whether proper accounting and other records have not been kept by the company.
whether the returns received from branch offices of the company are not adequate.
All options are correct.
It is ________________ responsibility to present at its annual general meeting a financial statements for the financial years
directors'
management's
auditors'
None of the option is correct.
The primary responsibility for the prevention and detection of fraud rests with both _______________ of the entity and the __________________ .
those charged with governance (TCWG) ; management
auditors ; management
auditors ; those charged with governance (TCWG)
None of the option is correct.
Misstatement may consist of the following:
The omission of a financial statement element.
A financial statement disclosure that is not presented in accordance with approved accounting standards.
Both options are correct.
Both options are incorrect.
________________ has ability to perpetrate fraud because it is in the position to directly or indirectly manipulate the accounting records and prepare fraudulent financial report.
Staff
Management
Employee
None of the option is correct.
Which one of the following has the purpose to communicate the material internal control weaknesses to those charged with governance or management.
Engagement Letter
Audit Letter
Business Letter
Management Letter
Audit evidence is a fundamental concept in auditing by which the auditor achieves the objective of absolute assurance that none of management’s assertions is materially misstated.
True
False
Audit evidence is rather persuasive than conclusive.
True
False
Physical examinations can be done with both tangible and intangible assets.
True
False
