Auditing MCQs with Answers

A. 1949 B. 1956 C. 1961 D. 1972 The correct answer to the question: “Institute of Chartered Accountants of Pakistan was established in____________?” is “1961”.

A. Staff specially appointed for the purpose B. Internal auditor C. Supervisor of the staff D. Members of the staff The correct answer to the question: “Internal check is carried on by___________?” is “Members of the staff”.

A. Technical errors B. Errors of principle C. Compensating errors D. None of the above The correct answer to the question: “Errors of Omission are_____________?” is “Technical errors”.

A. Curtailment of expenses B. Checking of Wastages C. Under valuation of assets D. Over Valuation of assets The correct answer to the question: “Window dressing implies_______________?” is “Over Valuation of assets “.

A. Testing of accounts and records B. Checking of selected number of transactions C. Examination of adjusting and closing entries D. Checking of all transactions recorded The correct answer to the question: “Test Checking refers to___________?” is “Checking of selected number of transactions”.

A. Lower, Higher, Lower B. Lower, Lower, Higher C. Higher, Lower, Lower D. Lower, Higher, Higher The correct answer to the question: “______the audit risks_______the materiality and_________the audit effort.” is “Lower, Higher, Lower”.

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 The correct answer to the question: “When issuing unqualified opinion, the … Read more

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 The correct answer to the question: “Analytical procedures issued in the planning stage of an audit, generally” is “All of the above “.

A. It helps to study relationship among balance sheet accounts B. It helps to discover material misstatements in the financial statements C. It helps to identify possible oversights D. It helps to accumulate evidence supporting the validity of a specific account balance The correct answer to the question: “Which of the following statements is most … Read more

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. The correct answer to the question: “Verification refers to_________?” is “Examining the physical existence and valuation of assets. “.