Verification refers to_________?

Related Mcqs:

1. Balance sheet audit includes verification of____________?

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

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. Concurrent audit is a part of____________?

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

4. Audit in depth is synonymous for____________?

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

5. Window dressing implies_______________?

   A. Curtailment of expenses
   B. Checking of Wastages
   C. Under valuation of assets
   D. Over Valuation of assets

6. 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

7. 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

8. The nature, timing and extent of substantive procedures is related to assessed level of control risk

   A. Randomly
   B. Disproportionately
   C. Directly
   D. Inversely

9. 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

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