A. Because they are easier to audit
B. Because it reduces the audit time
C. Because the risk to the accounts of their being incorrectly stated is greater
D. Because the directors have asked for it
Related Mcqs:
- Which of the following are you unlikely to see in the current file of auditors’ working papers?
A. Memorandum & articles of association
B. Audit planning memorandum
C. Summary of unadjusted errors
D. Details of the work done on the inventory count - Which of the following does NOT belong in the auditors’ report?
A. Introductory paragraph specifying the pages to which the report relates and the accounting convention adopted
B. Basis of the opinion
C. Involvement of any specialist
D. Statement of responsibilities of directors and auditors - Which one of the following may auditors NOT perform for their client?
A. Taking management decisions
B. Preparation of accounting records
C. Preparing tax computations
D. Advising on weaknesses in the internal control systems - The degree of effectiveness of an internal control system depends on:
A. The design of the internal control system and the implementation of the controls
B. The design of the internal controls and the implementation of the control system
C. The implementation of the controls and the correctness of the accounting records
D. The design of the internal control system and the correctness of the accounting records - When is evidential matter, generally, considered sufficient?
A. When it constitutes entire population
B. When it is enough to provide a basis for giving reasonable assurance regarding truthfulness
C. When it is objective and relevant
D. When auditor collects and evaluates it independently - _______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 - A statutory auditor has a right of access at all times to___________?
A. Books and accounts of a company
B. Books, accounts and documents of the company
C. Books, accounts and vouchers of the company
D. Notices and documents of the company - Which of the following would you not use as a benchmark for comparison when undertaking analytical procedures?
A. Other audit clients
B. Previous years
C. Other companies in the same industry
D. Budget - Which of these are types of Audit Report?
A. Unqualified opinion
B. Qualified opinion
C. Adverse opinion
D. Disclaimer of opinion.
All of aboveSubmitted by: Naveed Ali
- Auditing engagement can be performed w.r.t.
A. Profit making entity
B. Non-profit making entity
C. Corporate entity only
D. Any entitySubmitted by: ALIYA NAWAZ
The correct answer to the question: "Why do auditors concentrate their efforts on material items in accounts?" is "Because the risk to the accounts of their being incorrectly stated is greater".
