Lapping is also known as___________?

Related Mcqs:

1. Process of verifying the documentary evidences of transactions are known as___________?

   A. Auditing
   B. Testing
   C. Vouching
   D. Verification

2. Concealment of shortage by delaying the recording of cash receipts is known as_____________?

   A. Embezzlement
   B. Misappropriation
   C. Lapping
   D. None of these

3. Why do auditors concentrate their efforts on material items in accounts?

   A. Because they are easier to audit
   B. Because it reduces the audit time
   C. Because the risk to the accounts of their being incorrectly stated is greater
   D. Because the directors have asked for it

4. Which of the following is normally the most reliable source of audit evidence?

   A. Internal audit
   B. Suppliers’ statements
   C. Board minutes
   D. Analytical review

5. Internal check is carried on by___________?

   A. Staff specially appointed for the purpose
   B. Internal auditor
   C. Supervisor of the staff
   D. Members of the staff

6. 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

7. 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

8. _______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

9. Which of the following would you not use as a benchmark for comparison when undertaking analytical procedures?

   A. Other audit clients
   B. Previous years
   C. Other companies in the same industry
   D. Budget

10. Auditing engagement can be performed w.r.t.

    A. Profit making entity
    B. Non-profit making entity
    C. Corporate entity only
    D. Any entity

    Submitted by: ALIYA NAWAZ