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Audit 1 - Mid-Ii
Audit 1 - Mid-Ii
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Inspection
Confirmation
Observation
Analytical procedure
If the note payable is included in the accounts payable balance on the financial
statement, which assertion is violated?
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Completeness
Existence
Cut off
Classification
Valuation
For large volume of transactions with predictable trend, which test is more
appropriate?
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Test of control
Test of Details
Analytical procedure
Vouching
If the inherent risk is 100%, control risk is 50%, and the detection is 0%, the audit risk
will be:
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50%
5%
100%
0%
Which audit evidence is most appropriate (relevant) when the auditor is testing the
existence of Accounts receivable balance?
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Vouching
Tracing
Which of the following is NOT the benchmark for materiality?
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1% of gross asset
1% of revenue
1% of profit after tax
1% of turnover
Which control activity is most appropriate for the following scenario? "ABC Ltd. has an
expert personnel who deals with the transactions including making payment and
recording it in the books."
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Authorization
Performance review
Information processing control
Physical control
Segregation of Duties
Which of the following factor impaired the use of internal audit work by external
auditor?
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Internal audit department is a separate department of the organization.
All the internal auditors are chartered Accoutants
Internal auditors scope of work is limited
Internal auditors have applied due professional care
Recording the next year's revenue in current year will violate which assertion?
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Occurrence
Completeness
Accuracy
Cut off
Classification
Which of the following Assertion is affected when the term of the lease period expired?
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Existence
Rights and obligation
Valuation
Completeness
For the the following scenario, which risk management action is most appropriate?
"No control over the petty cash".
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Accept the risk
Prevent the risk
Avoid the risk