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Audit Paper MBA Exe - Final
Audit Paper MBA Exe - Final
Instructor: Mr.
Max Marks:
Roll #
20
Total
____________
Section A
Objective
Multiple Choice Questions: (10 *1)
1. Which of the following is more appropriate audit response:
a) Test of Controls more thoroughly inform management about internal control
problems.
b) Adopt a substantive approach and inform management about the internal
control problems
c) Continue with the planned audit approach and inform management about the
internal control problems.
2. Which of the following does not form part of understanding the entity:
a) Identifying accounting policies
b) Gaining knowledge of the control environment
c) Understanding the regulatory environment
d) Issuing the engagement letter
3. Which of the following approaches to auditing will normally involve
looking at the higher amount of documentation?
a) An audit approach using substantive test
b) An audit approach using test of controls.
4.
a)
b)
c)
d)
Complex transaction
Poor supervision of accounting staf
A new computerized accounting system
Poor staf turnover
Narrative notes
Control procedures
Control environment
Risk assessment
10.
Which of the following will not provide evidence about the cost
of unit of Inventory in a manufacturing company?
a) Hourly labor rate
b) Raw material invoices
c) The number of units of inventory
Class:
05-06-2016
Subject:
Audit
Mr. Hassan Ali
Term:
Final Term
Date:
Instructor:
Max Marks:
25
_____________________
Section B
Short questions
1. What is Engagement Letter?
2. What is mean by understanding the entity in the Audit Planning?
(2)
3. Write down three (3) types of Business risk?
4. Define Inherent Risk?
5. Write down the name of Financial Statements Assertions?
(3)
6. Write down two main aspects of yearend Inventory Count?
7. Write down two stages where Analytical Procedures are used?
(2)
Section C
Long Question
QNO 1. Write down the Inherent Limitations of Internal Controls?
(5)
QNO 2. Audit Risk= Inherent risk*control risk*detection risk.
Explain it.
1.
(5)
(2)
(2)
(2)
(2)