Which of the following statements is not true?

Auditing Mcqs 14/02/2021

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.

Related Mcqs:

    Which of the following is correct in relation to materiality?
    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 … Which of the following is correct in relation to materiality?Read More...
    Which of the following statements is, generally, correct about the reliability of audit evidence?
    A. To be reliable, evidence should conclusive rather than persuasive B. Effective internal control system provides reliable audit evidence C. Evidence obtained from outside sources routed through the client D. All are correct....
    Which of the following statement best describes the understanding with respect to ownership and custody of working papers prepared by an auditor?
    A. The working papers may be obtained by third parties when they appear to be relevant to issues raised in litigation B. The safe custody of working papers is the responsibility of client, if kept at his premises C. The working papers must be retained by an audit firm for a period of 10 years … Which of the following statement best describes the understanding with respect to ownership and custody of working papers prepared by an auditor?Read More...
    Which of the following statements is most closely associated with analytical procedure applied at substantive stage?
    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...
    Which of the following statements is not true with respect to management representations obtained as per AAS­11?
    A. Authenticated copy of relevant minutes of meetings may be regarded as management representation B. It should always be in working C. It may be dated prior to the report date D. It should be addressed to the auditor...

Leave a Reply

Your email address will not be published. Required fields are marked *