Auditing Multiple Choice Questions#2

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

  1. 1)

    In order to ensure effective control, how often a full inventory count should be held when perpetual inventory records are not kept adequately?

    • A) On a daily basis
    • B) At least once a year
    • C) At least monthly
    • D) At least weekly

  2. 2)

    For the purpose of keeping effective control in the cash system, who should have no access to the cash or the preparation of the paying-in slip?

    • A) Sales ledger personnel
    • B) Teller/cashier
    • C) Cash officers
    • D) Operations manager

  3. 3)

    Internal sources of audit evidence for an entity includes the following EXCEPT:

    • A) Associated companies of the entity
    • B) Accounting systems, records and documents
    • C) Non-financial data and records
    • D) Management representation and discussion

  4. 4)

    Which of the following is the least concern to an auditor regarding the client’s internal control system?

    • A) Efficiency and effectiveness of operations
    • B) Controls related to the reliability of financial reporting
    • C) Controls over classes of transactions
    • D) Auditors are equally concern with each of the given issues

  5. 5)

    During test of control procedure its design can easily tested with the help of:

    • A) ICQs and walk through tests
    • B) ICQs and judgment sample
    • C) ICQs and random sample
    • D) ICQS and ICEC

  6. 6)

    The small audit firms provide the following services EXCEPT:

    • A) Liquidation and receivership work, fraud auditing
    • B) Financial management and system consultancy
    • C) Financial system planning and preparation
    • D) Tax management and statutory form filling

  7. 7)

    Which of the following is not included in the category of cash?

    • A) Deposit with banks
    • B) Checks
    • C) Postdated checks
    • D) Money orders

  8. 8)

    For measuring the quality of audit evidence auditors used the tool of appropriateness; in case if auditor wants to measure quantity of audit evidence which tools from the following should be adopted?

    • A) Relevance
    • B) Reliability
    • C) Sufficiency
    • D) Effectiveness

  9. 9)

    When the cash sales should be recorded by the companies in order to achieve control objectives?

    • A) Record the cash sales when purchase order is received from the customer
    • B) Record the cash sales at the point they are made
    • C) Record the cash sales after some period
    • D) Record the cash sales weekly

  10. 10)

    Auditors conduct auditing in accordance with :

    • A) International Financial Reporting Standards
    • B) Local pronouncements/Legislations
    • C) Financial Accounting Standards Board
    • D) All of the given options