When issuing unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the___________?

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

In determining the level of materiality for an audit, what should not be considered?

A. Prior year’s errors
B. The auditor’s remuneration
C. Adjusted interim financial statements
D. Prior year’s financial statements

Analytical procedures issued in the planning stage of an audit, generally

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

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

Verification refers to_________?

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.

Stock should be valued at_________?

A. Cost
B. Market price
C. Cost or market price whichever is lower.
D. Cost less depreciation.

Floating assets are valued at____________?

A. Cost
B. Market price
C. Cost or market price whichever is lower
D. Cost less depreciation

Internal check is carried on by___________?

A. Staff specially appointed for the purpose
B. Internal auditor
C. Supervisor of the staff
D. Members of the staff

Errors of Omission are_____________?

A. Technical errors
B. Errors of principle
C. Compensating errors
D. None of the above

Window dressing implies_______________?

A. Curtailment of expenses
B. Checking of wastages
C. Under valuation of assets
D. Over valuation of assets