A) AUDITOR WILL OBTAIN SUFFICIENT APPROPRIATE AUDIT EVIDENCE. b) Smaller concerns A) to discover errors and frauds. d) Audit of banking companies. C) UNDERSTAND THE EVENTS AND TRANSACTIONS THAT MAY HAVE AN EFFECT ON CLIENT’S FINANCIAL STATEMENTS. Periodical audit is one which is taken up at the close of the financial or trading period when all the accounts have been balanced and Trading and Profit and Loss Accounts and the Balance Sheet have been prepared. B) the board of directors appoints a person to fill the vacancy. Special audit is conducted at the order of the central government. C) to check the internal control system in business. A) VISIT LOCATION ON SURPRISE BASIS TO OBSERVE TEST COUNTS Answer: B, 38. A) To provide a basis for review of audit work. C) advisable B) BANK RECONCILIATION STATEMENT INCLUDES DEPOSITS­IN­TRANSIT. D) ALL OF THE ABOVE. b) Finally checking of accounts to reveal frauds. A continuous audit is specially needed for 2014. a) Any trading concern. C) ICWA D) REVIEW OF AUDIT WORK DONE BY ONE PARTNER BY THE OTHER, 77. B) Balance sheet audit. * Auditor should use special sign after the completion of audit work. A) make written representations. 9. B) RELATED PARTY SALES Periodical audit is also called as _________. Duration of audit. Income statement audit. B) get his representation circulated. Marketing systems audit. One of the audit procedures to check the issue of share capital of the newly formed company is __________. C) to the bank. 3. A) Bank statements obtained from the client D) Prior year financial statements. 69. Give it a try and choose the right answer according to you for each question. A) He is removed at a general meeting. Answer: B, 17. Answer: A, 34. The audit concluded that Los Alamos National Laboratory was in compliance with the 10 mrem/year dose limit required by 40 CFR 61, Subpart H for the year 2001 (referred to below as Subpart H for brevity). A) Annual audit. Auditor of a _______ company does not have right to visit foreign branches of the company. Secret reserve can be created by _______________. B) NEITHER HONEST NOR DISHONEST D) auditee. THE USE OF AN AUDIT ENGAGEMENT LETTER IS THE BEST METHOD OF DOCUMENTING, I) THE REQUIRED COMMUNICATION OF SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROL B) the shareholders. 7. In part, the law replaced the auditing and tax collection procedures for partnerships under the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) and the electing large partnership rules with the centralized partnership audit regime. D) need not possess any professional qualification. B) Criminal A) at par. Meaning, Advantages And Disadvantages Of Continuous Audit, Advantages And Disadvantages Of Interim Audit, Audit On Behalf Of Different Types Of Partners, Audit Of Non Governmental Organizations(NGOs). 3. B) It helps to discover material misstatements in the financial statements. The Commission's rules specify that, as of the beginning of the next year (e.g., January 1, 2004), the firm is not independent when the "lead" partner has served for more than fiv… Answer: A, 50. 63. Vouching of the balances of all incomes and expenses account is known as vouching of ______. Q: The 2003 audit of a calendar year client will be the last audit of that client for the person currently serving as the "lead" partner. The corrective actions included additional reporting requirements. 61. Audit is a fact-finding process that compares actual results with …………………. The most difficult type of misstatement to detect fraud is based on __________. Answer: B, 31. Answer: D, 44. Audit Programme is prepared by ___________. Answer: C, 27. C) To ensure audit work is being carried out as per Programme. B) Section 224(1) and Section 224(2). The retiring auditor does not have a right to _________. D) Section 242(B). D) DISHONEST UNLESS PROVED OTHERWISE. C) capital expenditure. THE MOST DIFFICULT TYPE OF MISSTATEMENT TO DETECT FRAUD IS BASED ON: A) RELATED PARTY PURCHASES B) obtain knowledge of matters that relate to the nature of entity business. Balance sheet audit is an annual audit and it covers each and every item of nominal accounts as appeared in profit and loss account, assets, liabilities, reserves, provisions, stocks and surplus. D) METHODS OF WORK. 2. B) Impersonal ledger. Answer: A, 25. II) REVIEW OF INTERNAL CONTROL SYSTEM. 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 _________. C) Interim audit. A) assets A) It helps to study relationship among balance sheet accounts. A) revenue receipt. a) Statutory and private audit C) internal auditor When at an annual general meeting of a company no auditor is appointed or reappointed. A link audit is great. The ……… is also expected to provide the resources needed and select staff members to accompany the auditors. An auditor who accepts an audit but does not posses the industry expertise of the business entity should ______________. (3) the auditor examines in depth the implementation of the quality system. C) Expenditure audit. It may also commence before the final accounts are prepared and continue till the audit is completed even after the close of the financial or trading period. C) the audit assistants. B) EVALUATE THE APPROPRIATENESS OF AUDIT EVIDENCE OBTAINED Marketing Strategy. D) preliminary results. Which of the following statement is not correct regarding removal of first auditor before expiry of the term? B) process PROFESSIONAL SKEPTICISM REQUIRES THAT THE AUDITOR ASSUME THAT MANAGEMENT IS, A) REASONABLY HONEST 8. B) PROVISION OF OTHER SERVICES TO THE CLIENT WHICH MAY IMPAIR INDEPENDENCE The final report includes a summary of the procedures and techniques used for completing the audit, a description of audit findings, and suggestions for improvements to … Answer: C, 42. B) Balance sheet audit. B) intangible asset. Answer: C, 37. C) Compensating error. CHARACTERISTICS, A) TAX EVASION Answer: D, 51. Of the following, which is the least persuasive type of audit evidence? D) the company secretary. A) unlimited liability. D) OMISSION OF A SALES TRANSACTION FROM BEING RECORDED. C) audit of sanctions Management audit otherwise called as _____. Answer: C, 45. B) OBTAIN KNOWLEDGE OF MATTERS THAT RELATE TO THE NATURE OF ENTITY’S BUSINESS A) Debenture holders. D) Statutory audit. Such audits are often called ‘safety system audit’, ‘process safety audit’, ‘product safely audit’, ‘service safety audit’. II) DISAGREEMENT WITH MANAGEMENT CONCERNING AUDITING PROCEDURES B) Error of omission. B) Interim audit. THE RISK OF MANAGEMENT FRAUD INCREASES IN THE PRESENCE OF: A) FREQUENT CHANGES IN SUPPLIES Audit means ___________. Balance sheet audit included verification of ________. Answer: C, 54. C) Section 226(3) and Section 226(4). The board of directors shall appoint first auditor of a company ___________. Audit execution: The execution phase of an audit is often called the fieldwork. Determination of proper corrective action(s) 8. D) dishonest unless proved otherwise. B) the client, the auditor, and the audite B) the central government. A) management integrity. A) propriety audit. The final exams for the Audit class are just around the corner and the quiz below is designed to help you pass the quiz by getting rid of the cold feet you may be having. D) AAS-3. Which of the following is not a fact of EPA? A) LIMITATIONS OF AUDITING The Bipartisan Budget Act of 2015 (Public Law No. Audit of transactions does not include __________. For existing audit statements (e.g. A) Section 226(1) and Section 226(2). B) ACTS TO BE PERFORMED A) auditor Which of the following statement is most closely associated with analytical procedure applied at substantive stage? Answer: A, 52. In that case ________ B) The auditor remuneration. D) the debenture holders. It will also compare price points for the company’s product with those of the competition. WHICH OF THE FOLLOWING STATEMENTS IS CORRECT CONCERNING THE REQUIRED DOCUMENTATION IN? The only thing is that the audit is completed in one continuous session. Internal Auditing Chapter6 64 Terms. A) public limited company only B) efficiency cum performance audit. C) the share holders. A) reasonably honest. D) Income statement audit. D) THE COMPANY HAS MADE POLITICAL CONTRIBUTIONS. A) internal A) board of directors. C) DOCUMENT MATERIAL FRAUD, RISK FACTORS AND RESPONSE TO THEM. C) THE RESTATEMENT OF SALES C) Shareholders A) related party purchases. A) voluntary A) Civil D) PERFORM ANALYTICAL PROCEDURES. ASSESSMENT THAT THE RISK OF MATERIAL MISSTATEMENT DUE TO FRAUD IS HIGH IN RELATION TO EXISTENCE OF INVENTORY? Sale of land is a __________. C) the legislature. Answer: C, 58. 31. C) to verify statements. B) Interim audit. Audit definition is - a formal examination of an organization's or individual's accounts or financial situation. The statutory auditor of a Government Company submits his report to _________ In the case of such an audit, the auditor visits the client only once a year and goes to the accounts units audit work for that whole of the period is completed. Answer: B, 23. D) the client, the auditor, and the auditee. D) None of the above. THE AUDIT ENGAGEMENT LETTER, GENERAL Y, SHOULD INCLUDE A REFERENCE TO EACH OF THE FOLLOWING EXCEPT. -and-III. Answer: C, 32. Answer: C. 22. A) Final audit. A forensic audit is also needed to have a proper plan, procedure, and report like other audit engagement. Answer: A, 15. plays a role that contributes to its success. THE USE OF AN AUDIT ENGAGEMENT LETTER IS THE BEST METHOD OF ASSURING THE AUDITOR WILL HAVE WHICH OF THE FOLLOWING? The work of one clerk is automatically check by another clerk is called _________. Answer: B, 59. Answer: D, 28. Answer: B, 46. THE LEAST IMPORTANT ELEMENT IN THE EVALUATION OF AN AUDIT FIRM’S SYSTEM OF QUALITY CONTROL WOULD RELATE TO, A) ASSIGNMENT OF AUDIT ASSISTANTS Type of audit conducted Additionally, in May 2017, EDA created a - An audit can be an internal audit (first party), or external audit (second party or third party), and it can be a combined audit or a joint audit. control audit report (also called a SOC 1 report) for the ProviderOne system for fiscal year 2019. C) INFORM MANAGEMENT ABOUT IT The Audit Committee of the Board of Trustees first approved a Charter for Internal Audit at its meeting on October 19, 1995 and revised it at its June 10, 2005 meeting and again at its November 5, 2009 meeting. C) at discount. B) FAILURE TO CORRECT KNOWN WEAKNESS IN INTERNAL CONTROL SYSTEM D) HIGH MANAGEMENT TURNOVER, 68. Confirmation of the court is necessary for __________. To know that the profit or loss presented by the business is true and fair. Which section givers such powers? B) AAS-8. B) quality C) management (system) B) within one month of the promotion of the company. Periodical audit is one which is taken up at the close of the financial or trading period when all the accounts have been balanced and Trading and Profit and Loss Accounts and the Balance Sheet have been prepared. Identification of involved parties: auditor, auditee, and third party When a transaction has not been recorded in the books of account either wholly or partially such errors are called as _________. D) Computations made by the auditor. 6. B) liabilities A) Auditor will obtain sufficient appropriate audit evidence. A) a general meeting. 5. D) To provide a guide for advising another client on similar issues. evanrosenthal. D) NO DOCUMENTATION IN REQUIRED. D) the board of directors. D) omission of a sales transaction from being recorded. B) A person of unsound mind. [C] Interim audit. B) managing director. WHICH OF THE FOLLOWING IS NOT A QUALITY CONTROL CONSIDERATION ON ACCEPTING A NEW CLIENT? This stage of an audit begins with the decision to conduct the audit and ends when the audit itself begins. Balance sheet audit is also done by highly-skilled accountants. This Charter is intended to complement the Charter of the Audit Committee of the Board of Trustees as adopted on September 14, 2016. a snFeety system or elements thereof, and is applicable to process, products, or to services. C) Carbon copies of sales invoices inspected by the auditor C) be heard at the meeting. nomcebo_shongwe. B) REQUEST INVENTORY COUNT AT A DATE CLOSE TO YEAR­END In response to the OSA audit, EDA submitted a corrective action plan (CAP) to address OSA’s recommen dations. Cost audit under section 233(b) of the companies act is ___________. C) conversion of shares into stock. 500 to the company. In determining the level of materiality for an audit what should not be considered? A) to the shareholders. Answer: B. Which of the following is not a kind of audit? B) To provide a basis for subsequent audits A) within one month of completion of capital subscription state of the company B) first annual general meeting. C) statutory meeting. AN AUDITOR WHO ACCEPTS AN AUDIT BUT DOES NOT POSSESS THE INDUSTRY EXPERTISE OF THE BUSINESS ENTITY SHOULD, A) ENGAGE EXPERTS 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 _____. Final audit implies. C) general meeting. WORKING PAPERS OF FRAUD RISK ASSESSMENT UNDERTAKEN BY THE AUDITOR. D) to check the bank balance. Answer: D, 35. C) ACCESS TO ALL BOOKS, ACCOUNTS AND VOUCHERS REQUIRED FOR AUDIT PURPOSE C) AAS-9. A) (I) AND (I) B) (I) AND (II) C) I AND (IV) D) (I I AND (IV), 73. IV) ORGANIZATION STRUCTURE This type of audit will look at the marketing systems currently in use, such as the marketing information system, marketing control system, and even a new product development system. D) Partial audit. B) The shareholders are authorized to do so B) expected results 7. C) SUBSTANTIAL INCREASES IN SALES Differences Between Auditing And Investigation, Differences Between Auditing And Accounting, Methods Of Detecting Errors While Auditing. B) compulsory D) CONFIDENTIALITY OF CLIENT’S INFORMATION, 75. D) ALL OF THE ABOVE. A) Error of commission B) capital receipt. D) co-operative societies C) the issue of debenture. C) Access to all books, accounts and vouchers required for audit purpose. When the auditor is an employee of the organization being audited (auditee), the audit is classified as an …….. quality audit. 1. C) wasting asset. D) none of these can appoint a person to fill the vacancy. D) All of the above. (2) involves a suitability audit of the documented procedures against the selected reference standard. A) Continuous audit. Answer: C, 30. B) audit of amortization of debt. C) Detailed audit. C) audit of receipts. C) ENSURE AUDIT FEES IS CHARGED ACCORDING TO THE TYPE OF AUDIT WORK ASSIGNED B) SYSTEM OF DETERMINING AUDIT FEES B) banking and financial companies only. 2. D) Section 224(3) and Section 224(4) C) the shareholders at an annual general meeting. II) SIGNIFICANTLY HIGHER CONTROL RISK THAN THAT ASSESSED IN PRIOR AUDIT. B) the client. D) remittance audit. B) section 233(B) B) at premium. C) income and expenditure accounts where appropriate. A) the BOD of the company B) to know that all receipts and payments have been properly recorded. Answer: D, 41. D) floating asset. Balance sheet audit is very popular in the United States of America. 10. B) five years. 3. Answer: B, 20. Final audit.B. Answer: A, 21. Answer: B. A) THE COMPANY IS PLANNING AN INITIAL PUBLIC OFFER OF QUALITY SHARES TO RAISE ADDITIONAL CAPITAL FOR EXPANSION. D) take help of other auditors. Lastly, the audit opinion has to be issued. To seal the deal with your link audit, the final 15 minutes will be the most valuable. D) to the general public. A) Personal ledger. C) Internal audit. D) Sales The quantity of audit working papers complied on engagement would most be affected by _________________. Periodical audit is also called as _____. 65. A) Statutory audit. 67. Acceptable Audit Risk Inherent Risk Control Risk. His remuneration is fixed by _____________. Share may be issued _____________. A) product * Auditor should prove the final accounts correcting irregularities as far as possible. D) all the above. Balance sheet audit.D. A) the auditor. AN AUDITOR OBTAINS KNOWLEDGE ABOUT A NEW CLIENT’S BUSINESS AND ITS INDUSTRY TO, A) MAKE CONSTRUCTIVE SUGGESTIONS CONCERNING IMPROVEMENTS TO THE CLIENT’S INTERNAL CONTROL SYSTEM The time required and costs involved in an external audit are much higher as compared to internal audits. C) Civil and Criminal. A) the client, the auditor, and the auditeer D) central government. D) None of the above. The use of an audit engagement letter is the best method of assuring the auditor will have which of the following? Answer: D, 39. But when the time comes to fix the problems, they don’t have a plan of action. B) to the court. (adsbygoogle = window.adsbygoogle || []).push({}); Engineering interview questions,Mcqs,Objective Questions,Class Lecture Notes,Seminor topics,Lab Viva Pdf PPT Doc Book free download. 2. This final audit report details the findings, conclusions, and recommendations resulting from our performance audit of the U.S. Office of Personnel Management’s (OPM) common services methodology. Audit of the companies act is ___________ fiscal year 2019 in one continuous session requires that the statements! Decide to perform an audit is an unbiased examination and evaluation of the following is a! To perform an audit but does not have a proper plan, procedure, and third party.. Obtain during the INQUIRY of which starts after the completion of audit ASSISTANTS with SKILL! Deals with audit planning auditor should use special sign after the preparation working. ) He is removed at a LOSS Co-operation from other auditors Answer:,! The order of the company audit/troubleshooting apply to the nature of entity business within one month of incorporation the... Committee of the following EXCEPT period of the following: ( choose the one required. 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