Auditing MCQs

A. Teeming and lading
B. Looping
C. Embezzlement
D. Hacking

A. Management fraud is more difficult to detect than employee fraud
B. Internal control system reduces the possibility of occurrence of employee fraud and management fraud
C. The auditor’s responsibility for detection and prevention of errors and frauds is similar.
D. All statements are correct.

A. By independent auditor
B. Statutorily appointed auditor
C. By a person appointed by the management
D. By a government auditor

A. Shareholders
B. Management
C. Government
D. Law

A. Statutory audit
B. Balance sheet audit
C. Concurrent audit
D. All of the above

A. International accounting standards board
B. International federation of accountants
C. International standards board
D. Auditing practices board

A. Risk of over reliance
B. Risk of incorrect rejection
C. Risk of incorrect acceptance
D. Both a and c

A. The auditor has ascertained that the balance is materially correct when in actual fact it is not
B. The auditor concludes the balance is materially misstated when in actual fact is not
C. The auditor has rejected an item from sample which was not supported by documentary evidence
D. He applies random sampling on data which is inaccurate and inconsistent

A. The auditor
B. The client
C. The audit assistants
D. The auditor and his audit assistants

A. Evidence for audit conclusions
B. Owned by the client
C. Owned by the auditor
D. Retained in auditor’s office until a change in auditors