Internal check is carried on by___________?

Related Mcqs:

1. The branch auditor is appointed by___________?

   A. Shareholders in an annual general meeting
   B. Shareholders in general meeting
   C. Board of directors in board meeting
   D. Any of the above

2. The degree of effectiveness of an internal control system depends on:

   A. The design of the internal control system and the implementation of the controls
   B. The design of the internal controls and the implementation of the control system
   C. The implementation of the controls and the correctness of the accounting records
   D. The design of the internal control system and the correctness of the accounting records

3. 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

4. The scope of internal audit is decided by the___________?

   A. Shareholders
   B. Management
   C. Government
   D. Law

5. Which of the following statements is not true about continuous audit?

   A. It is conducted at regular interval
   B. It may be carried out on daily basis
   C. It is needed when the organization has a good internal control system
   D. It is expensive

6. 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

7. Goods sold on the basis of ‘sales or return ‘ should:

   A. Be included in the stock
   B. Not be included in the stock
   C. Not be checked by auditor
   D. None of the above

8. When is evidential matter, generally, considered sufficient?

   A. When it constitutes entire population
   B. When it is enough to provide a basis for giving reasonable assurance regarding truthfulness
   C. When it is objective and relevant
   D. When auditor collects and evaluates it independently

9. The working papers which auditor prepares for financial statements audit are___________?

   A. Evidence for audit conclusions
   B. Owned by the client
   C. Owned by the auditor
   D. Retained in auditor’s office until a change in auditors

10. Which of the following statement is true regarding an auditor’s working papers?

    A. They document the level of independence maintained by the auditor
    B. They should be considered as the principle support for the auditor’s report
    C. They should not contain details regarding weaknesses in the internal control system
    D. They help the auditor to monitor the effectiveness of the audit firm’s quality control