Auditing Multiple Choice Questions#5



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


  1. 1)

    A company auditor can be removed by _________________.


    • A) board of directors.
    • B) managing director.
    • C) any director.
    • D) general meeting.

  2. 2)

    A vacancy caused by resignation of an auditor is filled by _________.


    • A) board of directors.
    • B) managing director.
    • C) general meeting.
    • D) central government.

  3. 3)

    Audit in depth means __________.


    • A) audit of each and every item.
    • B) intensive audit of each and every item.
    • C) intensive audit of a few items.
    • D) audit of a few selected items.

  4. 4)

    Concurrent audit is a part of ______________.


    • A) internal check system.
    • B) continuous audit.
    • C) internal audit system.
    • D) final audit.

  5. 5)

    Audit in depth is synonymous for ____________.


    • A) complete audit.
    • B) completed audit.
    • C) final audit.
    • D) detailed audit.

  6. 6)

    Balance sheet audit included verification of ________.


    • A) assets.
    • B) liabilities.
    • C) income and expenditure accounts where appropriate.
    • D) all of the above.

  7. 7)

    Which of the following statements is not true about continuous audit?


    • A) It is conducted at regular interval.
    • B) It may be carried out on daily basis.
    • C) It is needed when the organisation has a good internal control system.
    • D) It is expensive.

  8. 8)

    Which of the following is not a fact of EPA?


    • A) Economic audit.
    • B) Efficiency audit.
    • C) Expenditure audit.
    • D) Effectiveness audit.

  9. 9)

    Balance sheet does not include ___________.


    • A) verification of assets and liabilities.
    • B) vouching of income and expense accounts related to assets and liabilities.
    • C) examination of adjusting and closing entries.
    • D) routine checks.

  10. 10)

    When issuing unqualified opinion the auditor who evaluated the audit findings should be satisfied that the ______________.


    • A) amount of known misstatement is documented in working papers.
    • B) estimates of the total likely misstatement is less than materiality level.
    • C) estimated of the total likely misstatement is more than materiality level.
    • D) estimates of the total likely misstatement cannot be made.