COMMERCE PK- QUALITY EDUCATION BEYOND YOUR IMAGINATION
b) Detection risk is related directly to they effectiveness of the auditor prosecutor
c) Detection risk related inversely to control risk
d) Internet risk and control risk are highly interrelated
16.The independence of an internal auditor will most likely be assured if he reports to the
a) President Finance b) President System c) Managing Director d) CEO
17. In comparison to the independent auditor, an internal auditor is more likely to be concerned with-
a) cost accounting system b) internal control system
c) legal compliance d) accounting system
18. When an independent auditor decides that the work performed by internal auditors may
have bearing on the nature, timing and extent of planned audit procedures, the independent
auditor should evaluate objectivity of the internal auditor. The most important factor
influencing it would be-
a) organizational level to which he reports b) qualification of internal auditor
c) system of quality control of his work d) all of the above
19. When an independent auditor relies on the work of an internal auditor, he or she should-
a) examine the scope of internal auditor’s work
b) examine the system of supervising review and documentation of internal auditor’s work
c) adequacy of related audit programme d) all of the above
20.Proper segregation of duties reduces the opportunities in which a person would both-
a) establish controls and executes them b) records cash receipts and cash payments c)
perpetuate errors and frauds and conceals them
d) record the transaction in journal and ledger.
INTRODUCTION TO AUDITING
1. d 2. b 3. c 4. b 5. a
6. b 7. d 8. a 9. a 10. b
11. d 12. b 13. a 14. d 15. b
16. a 17. c 18. b 19. a 20. d
21. c 22. d 23. b 24. b 25. b
26. c 27. c
CONCEPTS OF AUDITING
1. e 2. c 3. a 4. d 5. d
6. c 7. c 8. d 9. d 10. d
11. d 12. a 13. b 14. b 15. d
16. d 17. a 18. b 19. c 20. a
21. d 22. a
AUDIT EVIDENCE
1. c 2. b 3. d 4. c 5. a
6. b 7. d 8. b 9. b 10. d
11. a
AUDIT PREPARATION
1. b 2. d 3. c 4. b 5. c
6. d 7. a 8. c 9. d 10. b
11. a 12. c 13. a 14. a 15. c
16. d 17. c 18. a 19. d 20. c
AUDITING MCQS________________________21
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CAPTIAL AND REVENUE EXPENDITURE
1. b 2. d 3. c 4. b 5. c
6. d 7. a 8. c 9. d 10. b
COMPANY AUDITOR
1. b 2. a 3. c 4. d 5. d
6. b 7. a 8. b 9. a 10. b
11. c 12. c 13. e 14. d 15. a
16. b 17. c 18. a 19. c 20. d
21. b 22. c 23. d 24. a 25. b
26. d 27. c 28. b 29. b 30. b
31. c 32. b 33. b 34. a 35. c
36. c 37. d 38. a 39. b 40. a
41. c 42. b 43. a 44. a 45. d
46. a 47. c 48. b 49. c 50. a
51. c 52. c 53. a
GOVERNMENT AUDIT
1. c 2. b 3. b 4. d 5. c
6. a 7. b 8. d 9. a 10. b
EDP AUDIT
1. a 2. c 3. d 4. a 5. c
6. c 7. d 8. a
9. b 10. a 11. d
AUDIT OF CASHTRANSACTION
1. c 2. a 3. c 4. d 5. c
6. c 7. a 8. a 9. b 10. a
11. d 12. d 13. a 14. c 15. c
16. b 17. d 18. d 19. d
VERIFICATION AND VALUATION OF ASSETS
1. a 2. c 3. b 4. c 5. d
6. a 7. d 8. d 9. a 10. b
11. c 12. d 13. c 14. d 15. a
16. c 17. a 18. c 19. c 20. B
21. B
INTERNAL CONTROL
1. d 2. c 3. c 4. c 5. a
6. d 7. a 8. b 9. a 10. c
11. c 12. b 13. a 14. c 15. a
16. c 17. b 18. a 19. d 20. c
AUDITING MCQS_______________________22
