Audit Evidence MCQs



NOTE: Attempt all Questions to see the Result at the bottom of this page.


  1. 1)

    Of the following, which is the least persuasive type of audit evidence?


    • A) Bank statements obtained from the client
    • B) Documents obtained by auditor from third parties directly.
    • C) Carbon copies of sales invoices inspected by the auditor
    • D) Computations made by the auditor

  2. 2)

    Which of the following statements is, generally, correct about the reliability of audit evidence?


    • A) To be reliable, evidence should conclusive rather than persuasive
    • B) Effective internal control system provides reliable audit evidence
    • C) Evidence obtained from outside sources routed through the client
    • D) All are correct.

  3. 3)

    In an audit of financial statements, substantive tests are audit procedures that __


    • A) may be eliminated for an account balance under certain conditions
    • B) are designed to discover significant subsequent events
    • C) will increase proportionately when the auditor decreases the assessed level of control risk
    • D) may be test of transactions, test of balance and analytical procedures

  4. 4)

    The nature, timing and extent of substantive procedures is related to assessed level of control risk


    • A) randomly
    • B) disproportionately
    • C) directly
    • D) inversely

  5. 5)

    Which of the following factors is most important in determining the appropriations of audit evidence?


    • A) The reliability of audit evidence and its relevance in meeting the audit objective
    • B) The objectivity and integrity of the auditor
    • C) The quantity of audit evidence
    • D) The independence of the source of evidence

  6. 6)

    When is evidential matter, generally, considered sufficient?


    • A) When it constitutes entire population
    • B) When it is enough to provide a basis for giving reasonable assurance regarding truthfulness
    • C) When it is objective and relevant
    • D) When auditor collects and evaluates it independently

  7. 7)

    Which of the following is not a corroborative evidence?


    • A) Minutes of meetings
    • B) Confirmations from debtors
    • C) Information gathered by auditor through observation
    • D) Worksheet supporting consolidated financial statements

  8. 8)

    What would most appropriately describe the risk of incorrect rejection in terms of substantive testing?


    • A) The auditor concludes balance is materially correct when in actual fact it is not
    • B) The auditor concludes that the balance is materially misstated when in actual fact it not
    • C) The auditor has rejected an item for sample which was material
    • D) None of the above

  9. 9)

    Which of the following affects audit effectiveness?


    • A) Risk of over reliance
    • B) Risk of incorrect rejection
    • C) Risk of incorrect acceptance
    • D) Both (a) and (c)

  10. 10)

    What would most effectively describe the risk of incorrect acceptance in terms of substantive audit testing?


    • 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