Audit programme is prepared by____________?

Related Mcqs:

1. ______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

2. 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

3. 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.

4. _______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

5. Which of the following best describes the primary purpose of audit programme preparation?

   A. To detect errors or fraud
   B. To comply with GAAP appropriate evidence
   C. To gather sufficient
   D. To assess audit risk

6. Concurrent audit is a part of____________?

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

7. 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

8. Of the following, which is the least persuasive type of audit evidence?

   A. Bank statements obtained from the client
   B. Documents obtained by auditor from third parties directly.
   C. Carbon copies of sales invoices inspected by the auditor
   D. Computations made by the auditor

9. 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.

10. 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