During audit of the financial statements, the auditors are concerned with the verification and determination of which one of the following items?
- A) Statements, accuracy, and feasibility
- B) Date, accuracy, and reliability
- C) Policies, value, and reliability
- D) Cycle, policies, and reliability
The phrase (Scope of an Audit) refers to which one of the followings?
- A) Engagement letters
- B) Audit procedures
- C) Audit evidence
- D) Reasonable assurance
The factors that affect reasonable assurance include all of the following EXCEP:
- A) Use of testing (Sampling)
- B) Interest limitations of accounting and internal control
- C) Remuneration of the auditor
- D) Persuasive nature of audit evidence
A well designed Internal Control Questionnaire (ICQ) should incorporate the following EXCEPT:
- A) Be a sufficient source of data for the evaluation of internal controls
- B) Identity the internal control system's strengths and weaknesses
- C) Be organized by individual functional organizations
- D) Should include simple yes or no responses but no narrative responses
Which one of the following is FALSE about Internal Control Evaluation Checklists (ICEC)?
- A) ICEC is developed to overcome the shortcomings of Internal Control Questionnaire
- B) The rules of constructing ICEC is different than construction of Internal Control Questionnaire
- C) It is designed to determine, whether desirable internal controls are present
- D) It is normally employed where system's information has already been recorded
An auditor's flow chart of an entity's information system is a diagrammatic representation. It depicts what kind of information?
- A) Program for tests of control
- B) Understanding of the system
- C) Understanding of the types of irregularity that are probable given by the present system
- D) Documentation of the study and evaluation of the system
Which one of the following is NOT a factor included in the control environment of an entity?
- A) Integrity and ethical values
- B) Risk assessment
- C) Commitment to competence
- D) Organization structure
The audit which is a review of any part of an entity's operating procedures and methods is known as:
- A) Financial statement audits
- B) Operational audits
- C) Technical Audits
- D) Compliance audits
Analytical procedures used in planning an audit should focus on identifying which one of the followings?
- A) Areas that may represent specific risks relevant to the audit
- B) Material weaknesses in the internal control structure
- C) The predictability of financial data form individual transactions
- D) The various assertions that are embodied in the financial report
Which one of the following is an objective of the internal audit?
- A) To report on financial statements
- B) To check accounting system and internal control are operating efficiently
- C) To determine the accuracy of financial statement values and disclosures
- D) To establish a control system in the company