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A. To inspect
B. To examine
C. To hear
D. To investigate
Answer
C. To hear
Submitted by: Rasool Bux
The main object of an audit is _____________?
A. Expression of opinion
B. Detection and Prevention of fraud and error
C. Both (A) and (B)
D. It depends on the type of audit
Answer
D. It depends on the type of audit
Submitted by: Rasool Bux
An auditor is like a_?
A. Blood haunt
B. Watchdog
C. May both according to situation
D. None of these
Answer
B. Watch dog
Submitted by: Rasool Bux
Process of verifying the documentary evidences of transactions are known as___________?
A. Auditing
B. Testing
C. Vouching
D. Verification
Answer
C. Vouching
Submitted by: Rasool Bux
Auditing is compulsory for____________?
A. Small scale business
B. Partnership firms
C. Joint-stock Companies
D. Proprietary Concerns
Answer
C. Joint-stock Companies
Submitted by: Rasool Bux
Concealment of shortage by delaying the recording of cash receipts is known as__?
A. Embezzlement
B. Misappropriation
C. Lapping
D. None of these
Answer
C. Lapping
Submitted by: Rasool Bux
How long is the auditor’s term of office?
A. Until the audit is complete
B. Until the financial statements are complete
C. Until the next AGM (Annual General Meeting)
D. Until the directors remove them
Answer
C. Until the next AGM (Annual General Meeting)
Submitted by: Rasool Bux
Audit risk is composed of 3 factors. Which of the following is NOT one of those factors?
A. Compliance risk
B. Detection risk
C. Control risk
D. Inherent risk
Answer
A. Compliance risk
Submitted by: Rasool Bux
Which of the following should NOT be considered at the planning stage?
A. The timing of the audit
B. Analytical review
C. Last year’s written representation letter
D. Obtaining written representations
Answer
D. Obtaining written representations
Submitted by: Rasool Bux
Which of the following is NOT an accepted method of selection in sampling?
A. Systematic selection
B. Pervasive selection
C. Random selection
D. Haphazard selection
Answer
B. Pervasive selection
Submitted by: Rasool Bux