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

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Auditing MCQs

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1 / 40

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

Complexity of transactions

Sampling error

Non-sampling error

2 / 40

What is the main purpose of sampling in auditing?

To guarantee accuracy

To save time

To gather evidence

3 / 40

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

Reporting

Collection

Planning

4 / 40

Which auditing standard governs audit documentation?

AS 2201

AS 2301

AS 2101

5 / 40

What is the primary purpose of an audit?

Verify financial statements

Review tax returns

Detect fraud

6 / 40

What is the main objective of an operational audit?

Assess internal controls

Detect material misstatements

Evaluate effectiveness and efficiency

7 / 40

What is the purpose of an external audit?

Provide an independent opinion

Ensure regulatory compliance

Improve operational efficiency

8 / 40

Which of the following is an inherent limitation of auditing?

Fraud detection

Scope limitation

Sampling risk

9 / 40

Which auditing standard addresses audit planning?

AS 2301

AS 2101

AS 2201

10 / 40

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

Initiation

Planning

Completion

11 / 40

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

Inherent risk

Sampling risk

Materiality

12 / 40

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

AS 2401

AS 2201

AS 2301

13 / 40

What is the purpose of an audit program?

Overview of financial statements

Identification of key personnel

Detailed plan of audit procedures

14 / 40

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

AS 2301

AS 2401

AS 2601

15 / 40

Which type of audit is conducted to investigate suspected fraud?

Compliance audit

Operational audit

Forensic audit

16 / 40

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

Valuation

Existence

Completeness

17 / 40

What is the main focus of an internal audit?

Reviewing financial statements

Ensuring regulatory compliance

Assessing internal controls

18 / 40

What is the main focus of compliance audits?

Adherence to laws and regulations

Operational efficiency

Financial performance

19 / 40

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

Oral evidence

Documentary evidence

Physical evidence

20 / 40

Which type of audit is focused on evaluating operational efficiency?

Compliance audit

Operational audit

Financial audit

21 / 40

What is the primary purpose of internal audit?

Provide tax advice

Issue financial statements

Evaluate internal controls

22 / 40

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

AS 2201

AS 2401

AS 2601

23 / 40

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

Valuation

Cut-off

Existence

24 / 40

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

AS 2201

AS 2601

AS 2401

25 / 40

What is the purpose of substantive procedures in auditing?

Develop audit programs

Gather audit evidence

Ensure regulatory compliance

26 / 40

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

Existence

Valuation

Completeness

27 / 40

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

Monitor daily operations

Implement controls

Evaluate effectiveness

28 / 40

Which auditing standard addresses fraud and error?

AS 2301

AS 2401

AS 2201

29 / 40

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

Compliance audit

Operational audit

Forensic audit

30 / 40

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

Qualified

Adverse

Unqualified

31 / 40

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

Internal audit

External audit

Compliance audit

32 / 40

What is the main objective of an external audit?

Express an opinion on financial statements

Assess operational efficiency

Detect material fraud

33 / 40

What is the primary responsibility of external auditors?

Provide an independent opinion

Ensure profitability

Execute management's directives

34 / 40

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

Valuation

Existence

Completeness

35 / 40

What is the purpose of a test of controls?

Verifying account balances

Assessing the effectiveness of controls

Confirming transactions

36 / 40

Who typically sets the auditing standards in a country?

Industry leaders

Professional bodies

Government agencies

37 / 40

What is the purpose of analytical procedures in auditing?

Replace substantive testing

Provide documentary evidence

Enhance understanding of business

38 / 40

What is the main focus of a financial statement audit?

Regulatory compliance

Fair presentation of financial statements

Operational efficiency

39 / 40

What is the role of an auditor in detecting fraud?

Assessing risk of fraud

Investigating suspects

Guaranteeing fraud prevention

40 / 40

Which of the following is a component of internal control?

Financial reporting

Segregation of duties

External audit

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AdminMay 8, 2023

0 51 1 minute read

Auditing MCQs with Answers Quiz

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