In determining the level of materiality for an audit what should not be considered?
- A) Prior years errors.
- B) The auditor remuneration.
- C) Adjusted interim financial statement.
- D) Prior year financial statements.
Analytical procedures issued in the planning stage of an audit, generally ___________.
- A) helps to determine the nature, timing and extent of other audit procedures.
- B) directs attention to potential risk areas.
- C) indicate important aspects of business.
- D) all of the above.
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.
Computations made by the auditor.
- A) the auditor.
- B) the client.
- C) the audit assistants.
- D) the auditor and his audit assistants.
The working papers which auditor prepares for financial statements audit are _______ .
- A) evidence for audit conclusions.
- B) owned by the client.
- C) owned by the auditor.
- D) retained in auditor office until a change in auditors.
Which of the following best describes the primary purpose of audit programmed preparation?
- A) To detect errors or fraud.
- B) To comply with GAAP.
- C) To gather sufficient appropriate evidence.
- D) To assess audit risk.
Which of the following is not an advantage of the preparation of working paper?
- A) To provide a basis for review of audit work.
- B) To provide a basis for subsequent audits.
- C) To ensure audit work is being carried out as per Programme.
- D) To provide a guide for advising another client on similar issues.
The auditor permanent working paper file should not normally, include ________
- A) extracts from clients bank statements.
- B) past years financial statements.
- C) attorney letters.
- D) debt agreements.
Who is responsible for the appointment of statutory auditor of a limited company?
- A) Directors of the company.
- B) Members of the company.
- C) The central government.
- D) The state government.
The authority to remove the first auditor before the expiry of term is with ___________.
- A) the shareholders in a general meeting.
- B) the shareholders in the first annual general meeting.
- C) the board of directors.
- D) the central government.