vu acc311 Mid Term - Quiz No.2
vu acc311 Fundamentals of Auditing Quiz
This quiz belongs to book/course code vu acc311 Fundamentals of Auditing of vu organization. We have 18 quizzes available related to the book/course Fundamentals of Auditing. This quiz has a total of 10 multiple choice questions (MCQs) to prepare and belongs to topic Mid Term. NVAEducation wants its users to help them learn in an easy way. For that purpose, you are free to prepare online MCQs and quizzes.
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Question 1: Considering the Extent of audit procedure refers to which one of the following description?
It refers to the nature of testing and their procedures that is, designing, structuring, and compiling work to be done
It refers to the purpose i.e. (tests of controls or substantive procedures) and their type, that is, inspections, observation, inquiry confirmation, recalculation, re-performances or analytical procedures
It refers to when audit procedures are performed or the period or date to which the audit evidence applies
It refers to sample size or number of observations of a control activity (quantity of audit evidence)
Question 2: All expenditures incurred through petty cash should be recorded in which one of the following?
Cheque
Register
Computer sheet
Voucher
Question 3: One type of analyticprocedure is the Trend Analysis. Whione of the following is the best example of trend analysis?
Comparison of company financiratios to thof its competitors
Comparison of accounting recorto budgeted amounts
Comparison of inventory levels over the past 3 years
Comparison of interest expenses to outstanding lobalances
Question 4: An audit firm started planning annual audit process for a sports goods manufacturing company. The planning involves the following key points EXCEPT:
Establishing the overall audit strategy for the engagement
Developing an audit plan, in order to reduce audit risk to an acceptably low level
Surveillance of company operations and procedures
To benefit from the experience and insight of auditors and other key members of the engagement team
Question 5: Standard formof Auditors Report per the Companies Ordinan 1984 is described in whione of the following Leg Forms?
Form31A
Form32A
Form30A
Form35A
Question 6: Which one of the following is a common approach to increase the audit efficiency in sampling?
Selective testing
Stratification
Systematic selection
Random selection
Question 7: Which one of the following situations can constitute grounds for a claim of negligence on part of the auditors to detect a fraud?
The fraud was committed by a senior management override of internal controls which had been relied upon in reducing the extent of detailed testing
The auditor relied on sample evidence and thus failed to detect the fraudulent transactions
The auditor reported discrepancies to local management but did not investigate further as the likely impact on the accounts was not material
The auditor accepted local management representations as to discrepancies as the potential impact of the fraud was not material to the accounts as a whole
Question 8: Which one of the following may NOT be the control procedure at key stages of the sales cycle of an entity?
Receipt of goods
Receivables
Bad Debts
Invoicing and credit notes
Question 9: Which one of the following examples constitutes the most reliable piece of evidence available to an auditor?
A written confirmation from a bank
A supplier's invoice kept in the client's records
A duplicate sales receipt dated and signed
A receipted shipping document
