Auditing is luxury for a _________

________ audit is not a statuary requirement

Interim audit refers to _________

Audit procedures are methods or techniques that auditors use to obtain audit _____ and form an opinion regarding the financial statements of a company.

Usually, auditors need to use their _____ to determine whether the differences identified through applying analytical procedures are worth investigating further.

The example of principles errors is that wages paid for installation of plant and machinery is recorded as _________ paid to workers.

The clerical errors arise on account of negligence of the accounting staff. They are called _________ errors.

An audit report describes the financial condition and internal accounting controls by an __________ external auditor.

When the auditor issues a clean or __________ report, it means that the company's financial statements have been found to be fully compliant with accounting standards.

It is the audit report that auditors cannot express their opinion on financial statements. This is usually due to auditors could not obtain sufficient appropriate audit evidence to form an opinion on financial statements.

When entries made in the books of original entry or ledger are incorrect either wholly or partially, such errors are the errors of _________.

When auditors use documents to support recorded transactions, the process is often called ________.

It refers to net of cash receipts and cash disbursements relating to a particular activity during a specified accounting period.

Distribution of earnings to owners of a corporation in cash, other assets of the corporation, or the corporation's capital stock.

The (AUDIT) _________must completely satisfy himself with the accuracy and authenticity of the financial statements. Only then can he give the opinion that they are true and fair statements.

After the auditing procedure, the auditor must give his opinion via an audit report. A clean audit report means the auditor is fully happy with the accounts. He thinks they are a true and fair (REPRESENT) _________ of the financial status of the organization.

Periodical audit is one which is taken up at the close of the financial period, when all the accounts have been (BALANCE) _________ and final accounts have already been prepared. It may also commence before the final accounts are prepared and continue till the audit is completed even after the close of financial period.

The limited time frame for any external audit means that the auditors cannot examine every small detail of the accounts they are looking over but instead will focus their attention on a (CARE) _________ selected sample of results, figures, and transactions.

Audit (ASSERT)_______can provide auditors the clues on potential misstatement that may occur on the financial statements.  Likewise, auditors usually perform different types of audit procedures in order to test various audit assertions.

The auditor may observe employees to assure they are performing their tasks according to the appropriate regulations and (EXPECT) _______.

Fraud is like an ATM machine at a bank. Both are designed to withdraw money. ATM machines enable users to withdraw money from banks. Fraud is the (WITHDRAW) __________ of funds from an organization.

While auditors can identify opportunities to commit (FRAUD) __________ behavior, there are some areas, such as accounting estimates that it is hard to determine whether the misstatements are due to fraud or error.

There are four types of audit reports: an unqualified opinion, a qualified opinion, an adverse opinion, and a disclaimer of opinion. An unqualified or "clean" opinion is the (GOOD) __________ type of report a business can get.

Audits are conducted for a variety of reasons, (INCLUDE) __________ for the purposes of acquiring monetary capital and maintaining government compliance.

Audit means ___________.

The main object of the audit of the cash book may be ________.

When the auditor is an employee of the organization being audited (auditee), the audit is classified as an ____________ quality audit.

Verification of the value of assets, liabilities, the balance of reserves, provision and the amount of profit earned or loss suffered a firm is called _________.

Confirmations are documents sent by auditors to_____ parties to confirm their balances with the client.

Inspecting records or documents consists of _____ the supporting evidence for the preparation of financial statements.

Checking of sequence of vouchers may help the _________to locate the omission. Attention must always be drawn if there is a big break in the series of vouchers.

Errors of omission may be intentional or otherwise. But in both the cases, profit or _________ of the year is affected.

The __________ of directors, the stakeholders of the organization, shareholders, etc. use audit report.

A standard unqualified report contains the following distinct parts:

It is the report that auditors issue saying that there is a material misstatement and it affects financial statements as a whole. In this case, the misstatement is both material and pervasive.

When a transaction is recorded twice and also posted twice in the ledger, such an error will not affect the trial balance. Such errors are known as errors of _________.

Evaluations of financial information made by a study of plausible relationships among both financial and non-financial data.

It is general name for money, notes, bonds, goods, or services which represent amounts owed.

Net of cash receipts and cash disbursements relating to a particular activity during a specified accounting period.

The auditor must be (EXPERIENCE) ________ and trained in the procedures of auditing, i.e. must be qualified as an auditor.

The auditor must collect enough evidence to support his final opinion. This (COLLECT) _________ of such evidence is done by compliance and substantive procedures.

The auditor must record in his notebook the work completed by him and his (ASSIST) _________ from time to time, material errors detected and rectified, queries raised by him and his staff and explanations given by the client.

The auditor may use a different tick for checking the figures altered before the audit. Such variation in tick mark should be slight and (NOTICE) _________.

If auditors can't obtain a (SATISFY) _________ answer to justify the inconsistencies, they can apply other procedures to confirm the differences.

Audit assertions such as occurrence, accuracy, and cut-off are usually tested by (INSPECT) _______ the documents to support the accounting transactions in the company's records (vouching).

Fraud occurs because individuals use their positions to (INTEND) _________ override controls.

In general terms, a fraud control strategy focuses on fraud (PREVENT) _________ and detection.

Audit reports are very important to a company. It is required by banks, financial institutions, (INVEST) __________, creditors, and regulators.

The audit report gives the shareholders information about the (COMPLETE) __________ of the ledger and accounts, their accuracy and their adherence to the correct principles.

Once auditors have completed their work, they write an __________, explaining what they have done and giving an opinion drawn from their work.

The purpose of an audit is to form a view on whether the __________ presented in the financial report, taken as a whole, reflects the financial position of the organization at a given date.

The ____________ is also expected to provide the resources needed and select staff members to accompany the auditors.

Final audit implies____________

Audit procedures in the substantive procedures are performed to gather evidence about various audit assertions of different classes of transactions and account ___________.

_____is the process of asking the clients for an explanation of the process or transactions related to financial statements. This type of audit procedure usually involves collecting verbal evidence.

The errors are difficult to _________ as the Trial Balance tallies in spite of such errors. For instance, capital expenditure is recorded as revenue expenditure or vice versa.

When a transaction is recorded twice and also posted twice in the ledger, such an error is an error of _________.

A clean report is issued when the auditor is satisfied with the __________.

Negative report is made when auditor is __________.

It is the report that auditors give their opinion on financial statements when the financial statements contain material misstatement which can be isolated to one part of financial statements.

A printed piece of paper or an electronic code that can be used instead of money to pay for something, or that allows you to pay less than the usual price of something.

It encompass the investigation of identified fluctuations and relationships that are inconsistent with other relevant information or deviate significantly from predicted amounts.

Period of 12 consecutive months chosen by an entity as its accounting period which may or may not be a calendar year.

Method of determining whether or not income has met the conditions of being earned and realized or is realizable.

The signature part should include the manual signature of the auditor. The (PERSON) __________ name and signature of the auditor should be given.

In qualified report the auditor believes that overall financial statements are not (FAIR) __________ stated.

The principal errors arise generally when the principles of (ACCOUNT) _________ are not observed while recording a transaction.

The fear of detection is often viewed by (MANAGE) _________ as a deterrent to committing fraud.

(PERFORM) ___________ involves the auditor's independent execution of procedures or controls that were originally performed as part of the entity's internal control.

The fixed asset balance, which deals with assets that can't easily be converted into cash, is a common material account balance on an entity's (FINANCE) __________ statements.

Some practitioners questioned the auditor's responsibility to detect certain significant defalcations, such as at a retailing company where thefts are (REFLECT) __________ in cost of goods sold after inventories are adjusted to actual quantities on hand.

Fraud data mining is the process of obtaining and (ANALYZE) _________ transactional data to identify anomalies or patterns indicative of a specific fraud scheme.

A/An (QUALIFY) _________ opinion indicates that the financial records have been maintained in accordance with the standards known as Generally Accepted Accounting Principles (GAAP).

A financial audit report is the final step of an external financial audit. After planning the audit and (GATHER) __________ necessary information, an auditor then must interpret results.

Auditing begins where__________ ends.

The main objects of investigation is _________.

Financial audits focus specifically on an organization's financial status. Auditors work to verify records, including expenses, ________, investments and assets. They usually compile this information into a final determination for investors or shareholders.

Accounting systems are required to be revised in order to ensure that it may provide the information desired by the executives as an aid to ________ decisions.

For almost all companies, assets are an important part of their financial statements. Auditors must, therefore, _____audit procedures on those assets to ensure their existence.

Audit sampling is the method of audit procedure where auditors test less than 100% of items within the __________ of account balance or class of transaction.

Once the pressure or rationalization factor exceeds the fear of detection, the individuals look for the internal control weakness or the _________ to commit fraud.

Sometimes the _________ sends the invoice in duplicate and both the copies of the bill are recorded separately. This is also an error of duplication.

Disclaimer of opinion is made when auditor is __________.

Which of the followings are categories of audit reports?

It is written or printed paper that bears information that can be used to furnish decisive evidence. It could also be a recording, computer readable information, or a photograph.

These errors arise generally when the principles of accountancy are not observed while recording a transaction.

The audit procedures performed to obtain an understanding of the entity and its environment, including its internal control, to assess the risks of material misstatement at the financial statement and assertion levels.

It is defined as tangible property held for sale, or materials used in a production process to make a product.

Conveyance of land, buildings, equipment, or other assets from one person (Lessor) to another (Lessee) for a specific period of time for monetary or other consideration, usually in the form of rent.

The auditor has to satisfy himself with the (AUTHENTIC) ________ of the financial statements and report that they exhibit a true and fair view of the state of affairs of the concern.

Audits are conducted or performed to determine if the non-financial disclosures and (FINANCE) ________ statements present a true and fair view of the business's financial status.

External audits are conducted by (BIAS) ________ third parties, such as government agencies and financial companies.

The audit doesn't just end with the audit report; the auditor will also follow up with the (ORGANIZE) _________ to check on its progress and ensure continual improvement.

It is important for auditors to be aware of what types of audit procedures are suitable for testing different audit assertions. This may also depend on different levels of (ASSESS) _______risks and quality of audit evidence that auditors seek to obtain.

Substantive procedures in auditing are important because they (PRIORITY)_______ thorough documentation of finances. As an auditor, it's essential for you to have evidence of every monetary transaction to draw conclusions about a financial status.

Fraud occurs because individuals use their positions to (INTEND) _________ override controls.

The organized crime groups may be organized professionally or may be groups of individuals who (SPECIAL) _________ in a particular type of crime.

The most favorable opinion is an unqualified opinion, meaning the company director provided all the necessary financial documents and everything was in order and met all auditing (REQUIRE) __________.

s and everything was in order and met all auditing (REQUIRE) __________.

On some occasions, an auditor is unable to complete an accurate audit report. This may occur for a (VARIOUS) __________ of reasons, such as an absence of appropriate financial records.

An auditor shall report on the accounts examined by him _______________.

The auditor has to __________ himself with the authenticity of the financial statements and report that they exhibit a true and fair view of the state of affairs of the concern.

__________ is the distribution of earnings to owners of a corporation in cash, other assets of the corporation, or the corporation's capital stock.

Businesses that have shareholders or board members may use internal audits as a way to update them on their business's finances. And, internal audits are a good way to check in on _________ goals.

By ________ so-called substantive tests and tests of controls, the auditor can provide some assurance that the revenues of the company are recorded accurately.

________ sources usually provide a better quality of evidence. They are more reliable comparing to the internal source of evidence that is provided by the client.

The _________ errors may be further divided as errors of omission, errors of commission, duplicating errors and compensating errors.

A person's position in terms of their responsibilities and authority also contribute to the opportunity to _________ fraud.

An unqualified report is also called a/an __________ report.

It is the responsibility of the auditor to make an audit report in the __________ format every year after reviewing the financial statements of the organization.

Sales of products, merchandise, and services; and earnings from interest, dividend, rents.

Excess of expenditures over revenue for a period or activity. Also, for tax purposes, an excess of basis over the amount realized in a transaction.

The use of an audit procedure on a selection of the items within an account balance or class of transactions is called________.

When a transaction is omitted fully or in part from the books of accounts, such errors are known as errors of _________.

It is a special type of audit report in which the auditor states that he expresses no opinion on the financial statements.

The audit establishes a moral check on the staff of the business so that they became aware of not committing any (REGULAR) __________.

The auditor is influenced by the management of the company, and hence is not able to conduct a (COMPLETE) __________ independent examination of the books of accounts and gives his report on the same.

Interim audit is an audit, which is conducted in between the two annual audits with a view to find out interim profit of the business to (ABLE) __________ it to declare an interim dividend.

The proprietor himself takes (DECIDE) __________ about the scope of audit and the appointment of auditor.

These examples include control activities that are relevant to the risk of fraud or control activities over journal entries, such as (USUAL) _______transactions, allocation of funds, or adjustments.

An audit procedure designed to evaluate the operating (EFFECTIVE)_______ of controls in preventing, or detecting and correcting material misstatements at the assertion level.

A person's position in terms of their _________ (RESPONSIBLE) and authority also contribute to the opportunity to commit fraud.

Risk assessments are _________ (PERFORM) to satisfy regulatory and audit requirements, to gauge internal controls, and to locate fraud in core business systems.

Often called a clean opinion, an unqualified opinion is an audit report that is issued when an auditor determines that each of the financial records provided by the small business is free of any (REPRESENT) __________.

The writing of a qualified opinion is (EXTREME) __________ similar to that of an unqualified opinion.