Process of verifying the documentary evidences of transactions are known as___________?

Related Mcqs:

1. Lapping is also known as___________?

   A. Teeming and lading
   B. Looping
   C. Embezzlement
   D. Hacking

2. Concealment of shortage by delaying the recording of cash receipts is known as_____________?

   A. Embezzlement
   B. Misappropriation
   C. Lapping
   D. None of these

3. Which of the following is NOT an accepted method of selection in sampling?

   A. Systematic selection
   B. Pervasive selection
   C. Random selection
   D. Haphazard selection

4. Concurrent audit is a part of____________?

   A. Internal check system
   B. Continuous audit
   C. Internal audit system
   D. None of these

5. Which of the following statements is, generally, correct about the reliability of audit evidence?

   A. To be reliable, evidence should conclusive rather than persuasive
   B. Effective internal control system provides reliable audit evidence
   C. Evidence obtained from outside sources routed through the client
   D. All are correct.

6. 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

7. What are analytical procedures?

   A. Substantive tests designed to assess control risk
   B. Substantive tests designed to evaluate the validity of management’s representation letter
   C. Substantive tests designed to study relationships between financial and non­financial
   D. All of the above

8. Auditor of a___________company does not have right to visit foreign branches of the company?

   A. Unlimited liability
   B. Manufacturing
   C. Banking
   D. Non­profit making

9. Which of the following documents is not relevant for vouching cash sales?

   A. Daily cash sales summary
   B. Salesmen’s summary
   C. Monthly statements sent to customers
   D. Bank statement

10. Which of the following statements is INCORRECT?

    A. An auditor may serve on the board of directors of an audit client.
    B. An auditor who is an immediate family member of the director of an audit client must not be assigned to the audit team.
    C. Purchasing goods from an audit client on normal commercial terms does not create a threat to the auditor’s independence.
    D. An auditor who was recently a director of an audit client must not be assigned to the audit team for that client.