Auditing MCQs with Answers

AdminMay 8, 2023

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Welcome to the Auditing MCQs with Answers. In this post, we have shared a Test Preparation for Auditing Online Test for different competitive exams. Find practice questions with answers of the Auditing test online multiple choice questions with answers here. Each question offers a chance to enhance your knowledge regarding Auditing.

Auditing is the process of evaluating and examining financial records, transactions, processes, or systems of an organization to ensure accuracy, compliance, and transparency. Auditing is typically performed by independent professionals known as auditors who are trained to review financial statements, accounting practices, internal controls, and other relevant information.

Auditing MCQs with Answers Quiz

By presenting 3 options to choose from, Auditing Quiz which cover a wide range of topics and levels of difficulty, making them adaptable to various learning objectives and preferences. Whether you’re a student looking to reinforce your understanding our Student MCQs Online Quiz platform has something for you.

Test Name: Auditing Online Test
Type: MCQ’s
Total Questions: 40
Total Marks: 40
Time: 40 minutes

Note: Questions will be shuffled each time you start the test. Any question you have not answered will be marked incorrect. Once you are finished, click the View Results button.

Auditing MCQs

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1 / 40

What is the main focus of an internal audit?

Ensuring regulatory compliance

Reviewing financial statements

Assessing internal controls

2 / 40

Which of the following is not a phase of a financial statement audit?

Reporting

Collection

Planning

3 / 40

What is the main objective of an operational audit?

Evaluate effectiveness and efficiency

Assess internal controls

Detect material misstatements

4 / 40

Which auditing standard deals with communication of audit matters with those charged with governance?

AS 2401

AS 2301

AS 2601

5 / 40

Which auditing standard addresses fraud and error?

AS 2401

AS 2301

AS 2201

6 / 40

Which of the following is not a type of audit evidence?

Documentary evidence

Physical evidence

Oral evidence

7 / 40

What is the role of an auditor in assessing internal controls?

Implement controls

Monitor daily operations

Evaluate effectiveness

8 / 40

What is the role of an auditor in detecting fraud?

Assessing risk of fraud

Guaranteeing fraud prevention

Investigating suspects

9 / 40

Which auditing standard addresses the auditor's responsibility to consider fraud in an audit?

AS 2401

AS 2201

AS 2601

10 / 40

What is the purpose of a test of controls?

Verifying account balances

Assessing the effectiveness of controls

Confirming transactions

11 / 40

What is the main objective of an external audit?

Detect material fraud

Assess operational efficiency

Express an opinion on financial statements

12 / 40

What is the primary responsibility of external auditors?

Execute management's directives

Provide an independent opinion

Ensure profitability

13 / 40

Which of the following is not a phase of an audit engagement?

Planning

Completion

Initiation

14 / 40

Which auditing standard governs the audit of internal controls over financial reporting?

AS 2601

AS 2401

AS 2201

15 / 40

What is the main purpose of sampling in auditing?

To guarantee accuracy

To save time

To gather evidence

16 / 40

Which of the following is an inherent limitation of auditing?

Sampling risk

Fraud detection

Scope limitation

17 / 40

Which auditing standard addresses the auditor's responsibility to identify and assess the risks of material misstatement?

AS 2301

AS 2401

AS 2201

18 / 40

Which assertion deals with whether all transactions and accounts are correctly valued?

Completeness

Existence

Valuation

19 / 40

Which type of audit is focused on evaluating operational efficiency?

Operational audit

Compliance audit

Financial audit

20 / 40

What is the primary purpose of internal audit?

Provide tax advice

Evaluate internal controls

Issue financial statements

21 / 40

What is the primary purpose of an audit?

Review tax returns

Detect fraud

Verify financial statements

22 / 40

What is the main focus of a financial statement audit?

Fair presentation of financial statements

Regulatory compliance

Operational efficiency

23 / 40

Which assertion deals with whether all assets, liabilities, and equity interests exist?

Valuation

Existence

Completeness

24 / 40

What is the main focus of compliance audits?

Financial performance

Operational efficiency

Adherence to laws and regulations

25 / 40

Which type of audit is conducted by an entity's internal staff?

Internal audit

External audit

Compliance audit

26 / 40

What is the purpose of an external audit?

Improve operational efficiency

Ensure regulatory compliance

Provide an independent opinion

27 / 40

Which assertion deals with whether transactions are recorded in the correct accounting period?

Valuation

Cut-off

Existence

28 / 40

Which auditing standard governs audit documentation?

AS 2101

AS 2301

AS 2201

29 / 40

What is the purpose of an audit program?

Identification of key personnel

Overview of financial statements

Detailed plan of audit procedures

30 / 40

Which of the following is a component of internal control?

Segregation of duties

Financial reporting

External audit

31 / 40

Which of the following is not a characteristic of audit risk?

Sampling error

Complexity of transactions

Non-sampling error

32 / 40

Which type of audit focuses on verifying compliance with laws and regulations?

Forensic audit

Compliance audit

Operational audit

33 / 40

Which type of audit is conducted to investigate suspected fraud?

Compliance audit

Operational audit

Forensic audit

34 / 40

Which of the following is a component of the audit risk model?

Sampling risk

Inherent risk

Materiality

35 / 40

Which auditing standard addresses audit planning?

AS 2101

AS 2301

AS 2201

36 / 40

Which of the following is not a type of audit opinion?

Qualified

Unqualified

Adverse

37 / 40

Which assertion deals with whether all transactions and accounts that should be presented in the financial statements are included?

Completeness

Existence

Valuation

38 / 40

What is the purpose of analytical procedures in auditing?

Enhance understanding of business

Replace substantive testing

Provide documentary evidence

39 / 40

What is the purpose of substantive procedures in auditing?

Gather audit evidence

Develop audit programs

Ensure regulatory compliance

40 / 40

Who typically sets the auditing standards in a country?

Industry leaders

Government agencies

Professional bodies

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AdminMay 8, 2023

0 53 1 minute read

Auditing MCQs with Answers Quiz

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