Errors of Omission are_____________?

Related Mcqs:

1. Concurrent audit is a part of____________?

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

2. Test Checking refers to___________?

   A. Testing of accounts and records
   B. Checking of selected number of transactions
   C. Examination of adjusting and closing entries
   D. Checking of all transactions recorded

3. Which of the following statements is most closely associated with analytical procedure applied at substantive stage?

   A. It helps to study relationship among balance sheet accounts
   B. It helps to discover material misstatements in the financial statements
   C. It helps to identify possible oversights
   D. It helps to accumulate evidence supporting the validity of a specific account balance

4. Verification refers to_________?

   A. Examining the physical existence and valuation of assets.
   B. Examining the journal and ledger
   C. Examination of vouchers related to assets.
   D. None of the above.

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. 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

7. Which of the following affects audit effectiveness?

   A. Risk of over reliance
   B. Risk of incorrect rejection
   C. Risk of incorrect acceptance
   D. Both A and C

8. What would most effectively describe the risk of incorrect acceptance in terms of substantive audit testing?

   A. The auditor has ascertained that the balance is materially correct when in actual fact it is not
   B. The auditor concludes the balance is materially misstated when in actual fact is not
   C. The auditor has rejected an item from sample which was not supported by documentary evidence
   D. He applies random sampling on data which is inaccurate and inconsistent

9. 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

10. The auditor’s permanent working paper file should not normally, include__________?

    A. Extracts from client’s bank statements
    B. Past year’s financial statements
    C. Attorney’s letters
    D. Debt agreements