audit mcqs During audit of the financial statements, the auditors are concerned with the verification and

determination of which one of the following items? Statements, accuracy, and feasibility Date, accuracy, and reliability Policies, value, and reliability Cycle, policies, and reliability Which one of the following authorities shall fix the remuneration of the auditors, if auditors are appointed by the S CP? !Companies "rdinance, #$%&'? Directors Shareholders Company registrar S CP (he phrase !Scope of an )udit' refers to which one of the followings? ngagement letters )udit procedures )udit evidence *easonable assurance +ollowing statements are true about the legal requirements of boo,s accounts for the companies -C P(. !Companies "rdinance, #$%&' /oo,s of accounts should be preserved for #0 years /oo,s of accounts are to be ,ept at the registered office of the company Directors can review the boo,s of account during the business hours 1f a company fails to maintain boo,s of accounts according, it may leads to demolish the entity (he factors that affect reasonable assurance include all of the following -C P. 2se of testing !Sampling' 1nterest limitations of accounting and internal control *emuneration of the auditor Persuasive nature of audit evidence ) well designed 1nternal Control 3uestionnaire !1C3' should incorporate the following -C P(. /e a sufficient source of data for the evaluation of internal controls 1dentity the internal control system4s strengths and wea,nesses /e organi5ed by individual functional organi5ations Should include simple yes or no responses but no narrative responses Which one of the following is +)6S about 1nternal Control valuation Chec,lists !1C C'? 1C C is developed to overcome the shortcomings of 1nternal Control 3uestionnaire (he rules of constructing 1C C is different than construction of 1nternal Control 3uestionnaire 1t is designed to determine, whether desirable internal controls are present 1t is normally employed where system4s information has already been recorded )n auditor4s flow chart of an entity4s information system is a diagrammatic representation7 1t depicts what ,ind of information? Program for tests of control 2nderstanding of the system 2nderstanding of the types of irregularity that are probable given by the present system Documentation of the study and evaluation of the system Which one of the following is 8"( a factor included in the control environment of an entity?

1ntegrity and ethical values *is, assessment Commitment to competence "rgani5ation structure (he audit which is a review of any part of an entity4s operating procedures and methods is ,nown as. +inancial statement audits "perational audits (echnical )udits Compliance audits While considering internal control system of an entity, the auditor is basically concerned that the system provides reasonable assurance about which one of the following? (hat the management can not override the system "perational efficiency has been achieved according to management plans rrors have been prevented or detected Controls have not been circumvented by collusion Which one of the following is the source document for staff salaries? )pproved payrolls 9ouchers )ccounting statements Cash memos )nalytical procedures used in planning an audit should focus on identifying which one of the followings? )reas that may represent specific ris,s relevant to the audit :aterial wea,nesses in the internal control structure (he predictability of financial data form individual transactions (he various assertions that are embodied in the financial report Which one of the following meetings is considered as a 4meeting of directors or management? ;eneral meeting xtra ordinary general meeting /oard meeting :anagement meeting )CC<## +undamentals of )uditing +inal =00$ )CC<## +undamentals of )uditing Solved :C3S with ref )dd comment 8ame !required' >mail !required, but will not display' Website .D.lol..>'?>'%'.>@.>A.oops..sad..cry..o.>?.>x.ee,..555.P.roll..sigh. #000 symbols left 8otify me of follow>up comments

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