WorksheetsUnit 2 - Auditing
Total questions: 25
Worksheet time: 14mins
Which of the following has a broader scope?
(A) Internal Control.
(B) Internal Audit.
(C) Internal Checking.
(D) None of the above.
An internal auditor is :
(A) Temporary Employee.
(B) Permanent Employee.
(C) Daily Wager.
(D) None of the above.
A number of checks & controls exercised in a business to ensure its efficient working is known as :
(A) Internal check.
(B) Internal control.
(C) Internal audit.
(D) Interim check.
Internal check is meant for :
(A) Prevention of frauds.
(B) Detection of frauds.
(C) Helping audit in depth.
(D) Detection of errors.
Internal auditor is appointed by :
(A) The management.
(B) The shareholders.
(C) The government.
(D) The statutory body.
Auditing begins where -------- ends.
(A) Selling.
(B) Inventory valuation.
(C) Accounting.
(D) Purchases.
The work of one clerk is automatically check by another clerk is called :
(A) Internal control.
(B) Internal check.
(C) Internal audit.
(D) None of the above.
Internal controls and internal check are :
(A) One and the same.
(B) Different.
(C) Internal control includes internal check.
(D) None of the above.
Audit in depth is synonymous for:
(A) Complete audit.
(B) Completed audit.
(C) Final audit.
(D) Detailed audit
Balance sheet audit included verification of :
(A) Assets.
(B) Liabilities.
(C) Income & expenditure accounts where appropriate.
(D) All of the above.
Which of the following statements is not true about continuous audit?
(A) It is conducted at regular interval.
(B) It may be carried out on daily basis.
(C) It is needed when the organization has a good internal control system.
(D) It is expensive
Under check system principle of_________ is followed.
(A) Division of labour
(B) Division of work
(C) Principle of scalar chain
(D) Accountancy
This kind of audit is generally conducted between two annual audits.
(A) Internal audit
(B) Interim audit
(C) Final audit
(D) Continuous audit
Before the work of audit is commenced, the auditor plans out the whole of audit work is known as –
(A) Audit plan
(B) Audit note
(C) Audit risk
(D) Audit program
Who among the following can be appointed as the auditor of company?
(A) A partner or the director of the company
(B) A person of unsound mind
(C) Mr. ‘Y’ who owes Rs.500 to company
(D) Mr. ‘Z’ who holds the ‘CA’ Certificate
Sale of Rs.50,000 to ‘A’ was entered as a sale to ‘B’. This is an example of –
(A) Error of omission
(B) Error of commission
(C) Compensating error
(D) Error of Principle.
In comparison to the independent auditor an internal auditor is more likely to be concerned with –
(A) Cost accountancy system
(B) Internal control system
(C) Legal compliance
D) Accounting system
Interim audit refers to –
(A) Examination of accounts continuously
(B) Examination of accounts intermittently
(C) Audit work to find out & check interim profits of a company
(D) Carrying on audit for bonus purposes at the end of year
Internal auditor has to submit report to –
(A) Shareholders
(B) Government
(C) Company law board
(D) none of above
The main object of the audit of the cash book may be ________.
A. to verify the assets and liabilities.
B. to know that all receipts and payments have been properly recorded.
C. to check the internal control system in business.
D. to check the bank balance.
The purpose of the audit of wage payment is to determine that __________.
A. the work is executed completely for which the workers are paid wages.
B. the workers are paid the correct amount of wages under proper authorization.
C. the workers are working regularly.
D. none of the above.
When issuing an unqualified opinion the auditor who evaluated the audit findings should be satisfied that the ______________.
A. amount of known misstatement is documented in working papers.
B. estimates of the total likely misstatement are less than the materiality level.
C. estimated of the total likely misstatement is more than the materiality level.
D. estimates of the total likely misstatement cannot be made.
The internal auditor’s independence is most likely to be compromised when the internal audit department is responsible directly to audit committee of the board of directors.
TRUE
FALSE
The liability of auditor can be
Only civil
Only criminal
Either civil and criminal
Civil and /or criminal
Which of the following factors is most important in determining the appropriations of audit
evidence?
The reliability of audit evidence and its relevance in meeting the audit objective
The objectivity and integrity of the auditor
The quantity of audit evidence
The independence of the source of evidence
