vu acc311 Mid Term - Quiz No.3
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: A written understanding between the auditor and the client concerning the auditors responsibility for the discovery of illegal acts is usually set forth in which of the following letters?
Client representation letter
Letter of audit inquiry
Management letter
Engagement letter
Question 3: Analytical procedures are performed as a substantive test to achieve which of the following objectives?
To determine the nature, timing, and extent of compliance procedures
To reduce detection risk
To determine the nature, timing, and extent of other audit procedures
To keep audit risk to an acceptably low level
Question 4: Which of the following primary assertions is satisfied when an auditor ensures that there are no unrecorded assets, liabilities, transactions or events or undisclosed items in the client s financial records?
Valuation
Completeness
Existence
Rights and obligations
Question 5: Gains and losses during business operations of a company are determined in terms of increases and decreases in which one of the following sections of the Balance sheet?
Long term finances
Investments
Owners' equity
Long term liabilities
Question 6: Auditors conduct auditing in accordance with :
International Financial Reporting Standards
Local pronouncements/Legislations
Financial Accounting Standards Board
All of the given options
Question 7: Whiof the following is NOT one of the five major components of interncontrol?
Risk assessment
Control activities
Information and communication system
Humresourbackground checks
Question 8: All of the following should observed and inspected the auditors during the risk assessment process of entity EXCEPT:
Observations of Activities and operations
Inspection of Documents and records
Reading Management reports
Visit to other companies in the industry
Question 9: Following are the points considered during the verification of bank balances EXCEPT:
Obtain direct bank confirmation Obtain direct bank confirmation
Investigate about outstanding stale cheques
Investigate any significant reconciling items of an unusual nature in
Ensure that the creditors have been paid for their loan amount
Question 10: The control objectives of a sales system typically include the following EXCEPT:
Invoices and credits should be appropriately checked for accuracy and should be authorized before entering in the records
Goods returned and claims by customers should be controlled to determine the liability for goods returned and claims received
Customers orders should be authorized, controlled and recorded in order to execute them promptly
All valid transactions relating to payables, and only those transactions, should be accurately recorded in the accounting records bcoz payables relate to purchases not to sales
