Practice MCQ Questions and answers on Auditing Mcqs

A. Reporting to the shareholders on the accuracy of the accounts

B. Establishment of internal controls

C. Keeping proper accounting records

D. Supplying information and explanations to the auditor

A. International Accounting Standards Board

B. International Federation of Accountants

C. International Standards Board

D. Auditing Practices Board

A. The auditor should express an opinion on financial statements

B. His opinion is no guarantee to future viability of business

C. He is responsible for detection and prevention of frauds and errors in financial statements

D. He should examine whether recognised accounting principle have been consistently

A. Circulate representations to members

B. Apply to the court to have the proposal removed

C. Speak at the AGM/EGM where the removal is proposed

D. Receive notification of the AGM/EGM where the removal is proposed

A. Duty to report to the company’s bankers

B. Duty to report to the members

C. Duty to sign the audit report

D. Duty to report on any violation of law

A. The shareholders in a general meeting

B. The managing director

C. The board of directors in a board meeting

D. The audit committee

A. the directors

B. the company’s creditors (payables)

C. the company’s bank

D. the shareholders

A. Until the audit is complete

B. Until the financial statements are complete

C. Until the next AGM (Annual General Meeting)

D. Until the directors remove them

A. A matter is material only if it changes the audit report

B. A matter is material if the auditor and the directors both decide that further work needs to be done in the area under question

C. A matter is material only if it affects directors’ emoluments

D. A matter is material if its omission or misstatement would reasonably influence the decisions of an addressee of the auditors’ report

A. Background i.e. industry

B. Previous year’s audit i.e. any qualifications in the report

C. Considering the work to be done by the client staff e.g. internal audit

D. Considering whether the financial statements show a true and fair view