Name________________________

Id. No_______________________
P.O.Box______________________
City (Town)___________________
Region (Zone)_________________

UNITY UNIVERSITY COLLEGE

SCHOOL OF DISTANCE AND CONTINUING EDUCATION

Worksheet for Auditing (Acct 252) Diploma Programme

This is a test paper you are expected to do on your own. It carries 15 points. The test
paper should be completed and mailed to the School of Distance and Continuing
Education for evaluation. Do not try to complete the worksheet until you have covered
all the lessons and exercises in the course material.

Any questions in the course that you have not been able to understand should be stated
on a separate sheet of paper and attached to this worksheet. Your tutor will clarify them
for you.

After completing this test paper, be certain to write your Name, Id.No and Address on
the first page. Your Name and Id.No on the other pages.
Part I: Multiple Choices
Choose the best answer(s) from the given alternatives.
1. Which of the following is responsible for the fairness of the representation made in
financial statements?
A. Clients management C. Audit committee
B. Independent auditor D. AICPA E. All except 'D'
2. Determining adequacy of allowance for uncollectible accounts by the auditors is to prove
a type of audit assertion known as:
A. Presentation and Disclosure C. Valuation
B. Existence or occurrence D. Completeness E. All
3. Which of the following is/are not the activity of internal auditor?
A. Verifying the correctness, accuracy and authorization of transactions.
B. Giving an independent opinion on the financial statements of the organization.
C. Facilitate the detection and prevention of frauds
D. To assist management in achieving the most efficient operations.
E. None of the above
4. The following controlling procedures are relevant to acquisition (purchase cycle) except:
A. Approving credit
B. Initiating purchase
C. Placing orders
D. Receiving of goods
E. Authorizing payment for liabilities
5. Which of the following is not explicitly included in an unqualified standard audit report?
A. The opinion that the financial statements comply with GAAP.
B. GAAP were followed during the audit.
C. The Internal control of the client was satisfactory
D. The responsibilities of management
E. None of the above

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Part II: Short Answer Questions
1. Explain the reasons (demand) of auditing.
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2. Why is independence so essential for auditors?
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3. Explain how an audit committee can help an auditor be more independent.
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4. List the audit techniques (procedures) used to gather audit evidence.
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5. Describe the elements of a standard unqualified audit report.
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