The scope of internal audit is decided by the___________?

Related Mcqs:

1. 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;

2. Scope of financial audit is__________?

   A. Financial information
   B. Non-financial information
   C. Both (a) and (b)
   D. None of these

   Submitted by: ALIYA NAWAZ

3. When issuing unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the___________?

   A. Amount of known misstatement is documented in working papers
   B. Estimates of the total likely misstatement is less than materiality level
   C. Estimate of the total likely misstatement is more than materially level
   D. Estimates of the total likely misstatement cannot be made

4. ______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

5. 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

6. 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.

7. _______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

8. Internal audit is undertaken:

   A. By independent auditor
   B. Statutorily appointed auditor
   C. By a person appointed by the management
   D. By a government auditor

9. Audit in depth is synonymous for____________?

   A. Complete audit
   B. Completed audit
   C. Final audit
   D. Detailed audit

10. Balance sheet audit includes verification of____________?

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