The term ‘Audit’ is derived from a Latin word “audire” which means___________?

Related Mcqs:

1. ______the audit risks_______the materiality and_________the audit effort.

   A. Lower, Higher, Lower
   B. Lower, Lower, Higher
   C. Higher, Lower, Lower
   D. Lower, Higher, Higher

2. In an audit of financial statements, substantive tests are audit procedures that __________?

   A. May be eliminated for an account balance under certain conditions
   B. Are designed to discover significant subsequent events
   C. Will increase proportionately when the auditor decreases the assessed level of control risk
   D. May be test of transactions, test of balance and analytical procedures

3. For what minimum period should audit working papers be retained by audit firm?

   A. For the time period the entity remains a client of the audit firm.
   B. For a period of ten years
   C. For a period auditor opines them to be useful in servicing the client
   D. For the period the audit firm is in existence.

4. _______the audit risk,_______the materiality and _______the audit effort?

   A. Lower, Higher, Lower
   B. Lower, Lower, Higher
   C. Higher, Lower, Lower
   D. Lower, Higher, Higher

5. Audit risk is composed of 3 factors. Which of the following is NOT one of those factors?

   A. Compliance risk
   B. Detection risk
   C. Control risk
   D. Inherent risk

6. According to ISA 500, the strength of audit evidence is determined by which two qualities?

   A. Appropriateness & competence
   B. Sufficiency & appropriateness
   C. Reliability & extensiveness
   D. Objectivity & independence

7. Which of the following is normally the most reliable source of audit evidence?

   A. Internal audit
   B. Suppliers’ statements
   C. Board minutes
   D. Analytical review

8. Audit programme is prepared by____________?

   A. The auditor
   B. The client
   C. The audit assistants
   D. The auditor and his audit assistants

9. Balance sheet audit includes verification of____________?

   A. Assets
   C. Income and expense accounts where appropriate
   B. Liabilities
   D. All of the above

10. When restrictions that significantly affect the scope of the audit are imposed by the client, the auditor generally should issue which of the following opinion?

    A. Qualified opinion
    B. Disclaimer of opinion
    C. Adverse opinion
    D. Unqualified report with ‘an emphasis of matter’ paragraph;