Auditing Mcqs

Audit in depth is synonymous for____________?

(A) Complete audit

(B) Completed audit

(C) Final audit

(D) Detailed audit

Submitted By: Ali Uppal


Concurrent audit is a part of____________?

(A) Internal check system

(B) Continuous audit

(C) Internal audit system

(D) None of these

Submitted By: Ali Uppal


Audit of banks is an example of_____________?

(A) Statutory audit

(B) Balance sheet audit

(C) Concurrent audit

(D) All of the above

Submitted By: Ali Uppal


The scope of internal audit is decided by the___________?

(A) Shareholders

(B) Management

(C) Government

(D) Law

Submitted By: Ali Uppal


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

Submitted By: Ali Uppal


Which of the following statements is not true?

(A) Management fraud is more difficult to detect than employee fraud

(B) Internal control system reduces the possibility of occurrence of employee fraud and management fraud

(C) The auditor’s responsibility for detection and prevention of errors and frauds is similar.

(D) All statements are correct.

Submitted By: Ali Uppal


Goods sent on approval basis’ have been recorded as ‘Credit sales’. This is an example of____________?

(A) Error of principle

(B) Error of commission

(C) Error of omission

(D) Error of duplication

Submitted By: Ali Uppal


Lapping is also known as___________?

(A) Teeming and lading

(B) Looping

(C) Embezzlement

(D) Hacking

Submitted By: Ali Uppal


According to ISA 315, which of the following is NOT a control activity?

(A) Performance reviews

(B) Physical controls

(C) Organizational structure

(D) Segregation of duties

Submitted By: Ali Uppal


According to ISA 315, which of the following is NOT an element of the control environment?

(A) Participation of management

(B) Information processing

(C) Commitment to competence

(D) Human resource policies and practices

Submitted By: Ali Uppal