Auditing Mcqs
Lapping is also known as___________?

A. Teeming and lading
B. Looping
C. Embezzlement
D. Hacking

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.

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

The scope of internal audit is decided by the___________?

A. Shareholders
B. Management
C. Government
D. Law

Audit of banks is an example of_____________?

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

International auditing standards are issued by the______________?

A. International accounting standards board
B. International federation of accountants
C. International standards board
D. Auditing practices board

Which of the following affects audit effectiveness?

A. Risk of over reliance
B. Risk of incorrect rejection
C. Risk of incorrect acceptance
D. Both a and c

What would most effectively describe the risk of incorrect acceptance in terms of substantive audit testing?

A. The auditor has ascertained that the balance is materially correct when in actual fact it is not
B. The auditor concludes the balance is materially misstated when in actual fact is not
C. The auditor has rejected an item from sample which was not supported by documentary evidence
D. He applies random sampling on data which is inaccurate and inconsistent

Audit programme is prepared by____________?

A. The auditor
B. The client
C. The audit assistants
D. The auditor and his audit assistants

The working papers which auditor prepares for financial statements audit are___________?

A. Evidence for audit conclusions
B. Owned by the client
C. Owned by the auditor
D. Retained in auditor’s office until a change in auditors