1 AUDIT – Unit Exam 1 – 50 Marks

Q1) MCQ’s

(i) (1M)

What are the basic aspects of Assurance that the auditor gets

A) Truth and Fairness

B) Disclosure

C) Full Inclusion

D) All of the Above

(ii) (2M)

What is the meaning of an Auditing?

A) Audit is an independent examination of an entity whether profit oriented or

not and irrespective of its size or legal form when such an examination is
conducted with view to expressing an opinion thereon
B) Audit is an independent examination of an entity whether it is profit oriented
and respective of its size or legal form when such an examination is
conducted with view to expressing an opinion thereon
C) Audit is an independent examination of an entity whether it is profit oriented
and respective of its size or legal form when such an examination is
conducted with view to give true and fair view on financial statements
D) None of the above

iiii) (1M)

Who is the responsible for preparation of Financial Statements

A) Auditor
B) Management
C) Shareholders
D) None of the above

iv) (1M)

Why does an Auditor need evidence?

A) Judgment Formation
B) Preparation of Financial Statements
C) Give A True and Fair view on Financial Statements
D) None of the above

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2 AUDIT – Unit Exam 1 – 50 Marks

v) (1M)

Which help in deciding on the mode of obtaining evidence

A) Extent of effort
B) Ease of obtaining
C) Above (A) and(B)
D) None of the above

vi) (2M)

What are the process of judgment formation based on evidence

A) Evaluate the assertions as to their immateriality and relative importance
B) Collect the necessary information or evidence about the Financial
Statements
C) Identify the assertions to be examined
D) None of the above

vii) (1M)

What matters that should be considered in developing an Overall Audit plan for
the expected scope and conduct of the Audit
A) Evaluation of internal control
B) Compliance and Substantive Tests
C) Examination of Accounting Records
D) All of the above
viii) (1M)
What are the examples of Vouching

A) Inward Correspondence
B) Minutes Books
C) Both A & B
D) None of the Above
ix) (2M)

What are the features of a good internal control system

A) Suitable impersonnel
B) Scheme of unauthorization and procedures
C) Proper Organization Structure
D) All of the above

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3 AUDIT – Unit Exam 1 – 50 Marks

x) (1M)

What are the tools available to the auditor for review of Internal Control
A) Narrative record
B) Graphic Presentation
C) Both A & B
D) None of the above

xi) (1M)

list the areas in which internal Audit operates

A) Review of Accounting System and related Internal Controls
B) Examination of financial and operating information on behalf of Auditor
C) Examination of economy inefficiency and effectiveness of operations
D) None of the above

xii) (1M)

What are the features of a Good internal Audit Report

A) Constructiveness
B) Findings and conclusions
C) Both A & B
D) None of the above

Q2 (6M)

Can the External Auditor rely upon the work of an Internal Auditor?

Q3 (4M)

What are the General Considerations in Framing a System of Internal Check

Q4 (7M)
Write a Agreement on Audit Engagement Terms
Q5) (3M)

What are the various assertions an auditor is concerned with while obtaining

audit evidence from substantive procedure?

Q6) (7M)

What are the Audit Procedures to Obtain Audit Evidence?

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4 AUDIT – Unit Exam 1 – 50 Marks

Q7) (6M)

What are the basic principles of Governing of an audit?

Q8) (4M)

“Fraud in the form of misappropriation of goods is still more difficult to detect.” Explain.