Category: Auditing Mcqs

A. Self-interest threat
B. Self-review threat
C. Advocacy threat
D. Familiarity threat

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

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.

A. Statutory audit
B. Balance sheet audit
C. Concurrent audit
D. All of the above

A. Compliance risk
B. Detection risk
C. Control risk
D. Inherent risk

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