When is evidential matter, generally, considered sufficient?

Related Mcqs:

1. Analytical procedures issued in the planning stage of an audit, generally

   A. Helps to determine the nature, timing and extent of other audit procedures
   B. Directs attention to potential risk areas
   C. Indicates important aspects of business
   D. All of the above

2. 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.

3. The current file of the auditor’s working papers, generally, should include____________?

   A. A flowchart of the internal controls
   B. Organisation charts
   C. A copy of financial statements
   D. Copies of bond and debentures

4. Analytical procedures issued in the planning stage of an audit, generally?

   A. helps to determine the nature, timing and extent of other audit procedures
   B. directs attention to potential risk areas
   C. indicates important aspects of business
   D. All of the above

5. 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;

6. In determining the level of materiality for an audit, what should not be considered?

   A. Prior year’s errors
   B. The auditor’s remuneration
   C. Adjusted interim financial statements
   D. Prior year’s financial statements

7. Which one of the following is NOT considered to be part of planning?

   A. Background i.e. industry
   B. Previous year’s audit i.e. any qualifications in the report
   C. Considering the work to be done by the client staff e.g. internal audit
   D. Considering whether the financial statements show a true and fair view

8. Which of the following should NOT be considered at the planning stage?

   A. The timing of the audit
   B. Analytical review
   C. Last year’s written representation letter
   D. Obtaining written representations

9. In determining the level of materiality for an audit, what should not be considered?

   A. Prior year’s errors
   B. The auditor’s remuneration
   C. Adjusted interim financial statements
   D. Prior year’s financial statements

10. 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.