vu acc311 Mid Term - Quiz No.1
vu acc311 Fundamentals of Auditing Quiz
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Question 1: KMC Electronics Company hires auditors at the year end. Auditors are at the stage of verification and vouching of company s financials. Before examining the equity section, they developed general aspects concerning the owner s equity. In your opinion, which one of the following aspects may NOT be considered by the auditors during this assessment?
Share capital is properly classified and described in the accounts
Assets of the company are properly classified and presented
Reserves are properly classified and presented
Movements in reserves are properly authorized
Question 3: Whione of the following helps to achieve reasonable assuranabout the fairness of financistatements during audit process?
Audit report
Audit evidence
Audit engagement
Audit program
Question 4: SEstanfor whione of the following?
Securities and Exchange Collaboration of Pakistan
Securities and Exchange Consortium of Pakistan
Securities and Exchange Commission of Pakistan
Securities and Exchange Constitution of Pakistan
Question 5: Which one of the following best describes the process of teeming and lading in the cash system of an entity?
The use of one's occupation for personal enrichment through the deliberate misuse of organization's assets
An attempt to hide the loss of cash received from one customer by using cash from another customer or customers to replace it
The conversion and obtaining of money or property by false pretense
Any intentional deception resulting in injury to another person
Question 6: While testing the purchase system of an entity, which one of the following control tests may NOT be applied to the purchase order document?
Evidence of a sequence check
Evidence of approval of requisitions
Proof of issuance date
Adherence to authority limits
Question 7: While conducting operationaudit, whione of the following auditing procedures does the auditor primarily rely upon?
Inquiry and observation
Analyticprocedures
Physicinspection
Tracing and vouching
Question 8: Which one of the following matters does NOT affect Auditor s Opinion?
When there is a limitation on the scope of the auditor's work
When there is a disagreement with management regarding the accounting policies selected
When there is a disagreement with management regarding the method of applying accounting policies
When an auditor modify the auditor's report by adding a paragraph to highlight a material matter
Question 9: Which one of the following is also called as books of secondary entries ?
Journal
Voucher
Ledger
Memo
Question 10: Which one of the following statements is TRUE?
A very small sample of only one or two pieces of relevant, competent, and timely evidence lacks persuasiveness
A large sample of highly competent evidence is not persuasive unless it is relevant to the audit objective
A large sample of evidence that is neither competent nor timely is not persuasive
All of the given options are true
