Question: Regulation of Audit and Assurance services is effected through the

following except
Answer:Religious regulation

Question: The is the unified body that should set accounting and auditing
standards enforce and monitor compliance with those standards and oversee the self
regulatory accountancy professional bodies in Nigeria
Answer:FRCN

Question: is a process by which money earned from criminal activities dirty money
is transferred and transformed so that it appears to have come from a legitimate
source clean money
Answer:Money laundering

Question: imposes an obligation on all professional accountants to be

straightforward and honest in all professional and business relationships
Answer:Integrity

Question: implies that a professional accountant shall not perform a professional

service if a circumstance or relationship biases or unduly influences the
accountants professional judgment with respect to that service
Answer:Objectivity

Question: The principle of provides that an accountant must not use information
acquired as a result of professional and business relation for his personal
advantage or that of third parties
Answer:confidentiality

Question: The principle of imposes an obligation on all professional accountants

to comply with relevant laws and regulations and avoid any action that may
discredit the profession
Answer:professional behavior

Question: is the separation of illegally obtained money from its source through a
series of financial transactions that makes it difficult to trace the origin
Answer:Layering

Question: The principle of imposes an obligation on all professional accountants

to be straightforward and honest in all professional and business
relationships
Answer:integrity

Question: There is a threat when a professional accountant reviews his or her own
work or advice as part of an assurance engagement
Answer:self review

Question: 1
Answer: in the case of an audit is a level of care and competence that will help to
minimize the risk of material errors or misstatement in the financial statements

Question: 2
Answer:

Question: 3
Answer:

Question: 4
Answer:Auditors
Question: 5
Answer: is a process of responding to an invitation to quote for a new audit work

Question: 6
Answer:

Question: 7
Answer:

Question: 8
Answer:

Question: 9
Answer:

Question: 10
Answer:

Question: in the case of an audit is a level of care and competence that will help
to minimize the risk of material errors or misstatement in the financial statements
Answer:Duty of care

Question: is an act or omission which occurs because the auditor failed to

exercise that degree of reasonable skill and care which is reasonably to be
expected in the circumstances of the audit case
Answer:Negligence

Question: is the gap between what users of auditors reports believe to be the
purposes of the audit compared with the actual nature of the assurance reported to
them by auditors
Answer:Expectation gap

Question: gap arises as a result of a misunderstanding of the role of the auditor

and the information conveyed by the auditors report
Answer:Communication

Question: is a process of responding to an invitation to quote for a new audit

work
Answer:Tendering

Question: is a practice of charging less than the market rate for an audit when
tendering for new clients
Answer:Lowballing

Question: An audit letter is a contract document which defines the terms and scope
of the audit engagement
Answer:engagement

Question: If the audit risk is 5 this means that the auditor accepts that there
will be a
Answer:95 chance that the audit is materially correct

Question: risk is the risk of a material misstatement occurring in an assertion

assuming no related internal controls
Answer:Inherent

Question: risk is the risk that the auditors own procedures and review of the
financial statements will not detect material misstatements
Answer:Detection
Question: The acronym EDI stands for
Answer:Electronic Data Interchange

Question: software is computer programs used by the auditor to extract information

from a clients computer based information system for use in the audit
Answer:Audit

Question: test are tests which seek to provide audit evidence that internal
control procedures are being applied as prescribed
Answer:Compliance

Question: test is an audit test which seeks direct evidence of the correct
treatment of a transaction
Answer:Substantive

Question: risk is the risk that the sample chosen may not be representative of the
population as a whole
Answer:Sampling

Question: risk arises from factors that cause the auditor to reach an erroneous
conclusion for any reason not related to the size of sample
Answer:Non sampling

Question: AAnopinion is expressed when the effect of a disagreement is so material

and pervasive to the financial statements that the auditor concludes that a
qualification of the report is not adequate to disclose the misleading or
incomplete nature of the financial statements
Answer:Adverse

Question: is an act of examining searching and inquiring into a matter with

adequate care and accuracy usually undertaken to obtain information of particular
or special nature
Answer:Investigation

Question: reserve is established and maintained to cover fluctuations in

securities and variation in statistical estimates
Answer:Contigency

Question: The following are the main types of public sector audit except
Answer:Desk

Question: is the transformation of

Answer:Money laundering

Question: implies that a professional accountant is not obliged to perform a

professional service if the accountants professional judgment can be biased or
influenced with respect to that service
Answer:Objectivity

Question: is the practice of charging less than the market rate for an audit when
tendering for new clients
Answer:Lowballing

Question: The is saddled with the responsibility of setting enforcing and

monitoring compliance of accounting and auditing standards in Nigeria
Answer:FRCN

Question: Audit and assurance services are regulated through the following except
Answer:Constructive regulation

Question: threat occurs when a financial or other interest of the professional

accountant or of immediate or close family member will inappropriately influence
the professional accountants judgment conduct or behaviour
Answer:Self interest

Question: is the minimum number of years prescribed for the retention of audit
working papers
Answer:7

Question: An letter is a contract document which defines the terms and scope of
the audit engagement
Answer:audit engagement

Question: is an act or omission which occurs because of auditors failure to

exercise that degree of reasonable skill and care which is expected in the
circumstances of the audit case
Answer:Negligence

Question: is referred to as the response to an invitation to quote for a new audit

work
Answer:Tendering

Question: is the gap between what users of auditors reports believe to be the
purpose of the audit compared with the actual nature of the assurance reported to
them by auditors
Answer:Expectation gap

Question: In carrying out an audit is the level of care and competence that will
help to minimize the risk of material errors or misstatement in the financial
statements
Answer:Duty of care

Question: An audit risk of 5 implies that the auditor accepts that there will be a
chance that the audit is materially correct
Answer:095

Question: The audit sets the scope timing and direction of the audit
Answer:strategy

Question: Q1 ____________accounting is the application of accounting, auditing and

investigative skillsto conduct an examination into a company's financial statement.
Answer: Forensic

Question: Q2 _________reserve is established and maintained to cover flunctuations

in securities and variation in statistical estimates in insurance companies
Answer: Contigency

Question: Q3 __________ assets can be classified as performing and non-performing

Answer: Risk

Question: Q4 __________ audit consists of a parent company with either wholly

and/or partlyowned subsidiaries, associates and other related parties such as
partnership and joint ventures
Answer: Group

Question: Q5 A ___________ audit is an assignment carried on the same financial

statements at the same time by more than one audit firm
Answer: joint

Question: Q6 A __________ is defined as a situation where control is designed,

implemented or operated in such a way that it is unable to prevent, or detect and
correct, misstatements in the financial statements on a timely basis
Answer: deficiency

Question: Q7 _________ is expressed when the possible effect of a limitation on

scope is so material and pervasive that the auditor has not been able to obtain
sufficient appropriate evidence
Answer: Disclaimer of opinion

Question: Q8 ________ is expressed when the auditor, having obtained sufficient

appropriate audit evidence, concludes that misstatements, individually or in
aggregate, are both material and pervasive to the financial statements.
Answer: Adverse opinion

Question: Q9 ________ is all the information used by the auditor in arriving at

the conclusions on which the audit opinion is based
Answer: Audit evidence

Question: Q10 Test data can be used for the following except _______
Answer: comparing programmes

Question: Q11 Resident code or embedded software can also be reffered to as

_______
Answer: embedded audit facilities

Question: Q12 ___________ is computer programs used by the auditor to extract

information from a client's computer-based information system, for use in the
audit.
Answer: Audit software

Question: Q13 ________ can be defined as any technique that enables the auditor to
use computer systems and techniques as a source of generating audit evidence
Answer: CAAT

Question: Q14 The following problems are generated by the EDI systems for the
auditor except ______
Answer: monitoring and checking of outputs

Question: Q15 Controls over the transmission of data that may minimise the risks
inherent in EDI systems include______
Answer: encryption of data before transmission

Question: Q16 General controls in an on-line system could include the following
except________
Answer: Balancing

Question: Q17 Application controls in on-line system could include the following
except ______
Answer: Transaction logs

Question: Q18 _________ systems are network computer systems that allow users
direct access to centrally-held data and programs.
Answer: On-line

Question: Q19 __________ refers to a computer system in which the entity uses a
number of stand-alone 'desktops' computers that are located throughout the
organization
Answer: Microcomputer

Question: Q20 The acronym EDI means __________

Answer: Electronic Data Interchange

Question: Q21 An auditor gives a/an _________ report when the auditor concludes
that the financial statements give a true and fair view in accordance with the
financial reporting framework
Answer: unqualified

Question: Q22 Where the going concern assessment has not been performed, according
to ISA 570, the auditor must perform ___________ procedures.
Answer: risk assessment

Question: Q23 It is the responsibility of ________ to make the going concern

assessment
Answer: management

Question: Q24 _________ events are events that provide evidence of conditions that
already existed at the end of the reporting period.
Answer: Adjusting

Question: Q25 The following except _____are audit risks involved in fair value
measurement.
Answer: statistical risk

Question: Q26 When using the work of an expert, the auditor should obtain
sufficient appropriate audit evidence that such work is adequate for the purposes
of the audit. An expert in this context could be the following except _________
Answer: priests

Question: Q27 In gathering audit evidence, a competent evidence must be relevant,

reliable and _______
Answer: sufficient

Question: Q28 ________ evidence is the measure of the quality of audit evidence.
Answer: Appropriate

Question: Q29 _______ analysis is the analysis of changes in an account balance or

ratio over a period of time.
Answer: Trend

Question: Q30 The following are types of analytical procedures used in the
evaluation of financial information except ________
Answer: Regression analysis

Question: Q31 The type of sampling that requires random selection of a sample and
the use of probability theory to evaluate results is reffered to as ______ sampling
Answer: Statistical

Question: Q32 _________ sampling is a sampling techniques that involves selecting

a sample of appropriate size based on the auditor's professional judgement of what
is desirable
Answer: Judgement

Question: Q33 _________ risk can be reduced by proper engagement planning,

supervision and review.
Answer: Non-sampling
Question: Q34 In audit practice, ________ error occurs when the auditor assumes
that control risk and material misstatement does not occur.
Answer: Type 1

Question: Q35 _________ risk occurs when the sample chosen may not be
representative of the population
Answer: Sampling

Question: Q36 In auditing, the main objective of _________ is to draw conclusions

about a large volume of financial statement data
Answer: sampling

Question: Q37 The following are techniques of obtaining audit evidence except
________
Answer: hypothesizing

Question: Q38 _______ are tests that are designed to obtain audit evidence to
detect material misstatements in financial statement
Answer: Substantive tests

Question: Q39 In the test of control, the auditor looks at ______ components of an
entity's internal control.
Answer: 5

Question: Q40 ________ is a form of audit test which seek to provide audit
evidence that internal control procedures are being applied as prescribed.
Answer: Compliance test

Question: Q41 A/An _________ helps the auditor to ensure that key areas more
susceptibleto material misstatement are adequately investigated and tested during
the audit.
Answer: Risk assessment

Question: Q42 _________ is a contract document which defines the terms and scope
of the audit engagement
Answer: Audit engagement letter

Question: Q43 ________ is a practice of charging less than the market rate for an
audit when responding to an invitation to quote for a new audit work
Answer: Lowballing

Question: Q44 __________ is a process of responding to an invitation to quote for

a new audit work
Answer: Tendering

Question: Q45 An audit firm should charge fees which are fair and reasonable
taking into account the following except_________
Answer: the number of shareholders

Question: Q46 As regards reference to fees in advertising and publicity, comments

about fees
Answer: must not make comparison with the fees of other service providers

Question: Q47 A auditor may be changed for many reasons except ______
Answer: the audit firrm has changed its name

Question: Q48 The purpose of audit review is to find out whether __________
Answer: the objectives of the audit has been achieved
Question: Q49 The review of audit work is a very important aspect of any quality
control system any could include any of the following forms except _______
Answer: individual review

Question: Q50 Quality control procedures can be considered at _____ levels

Answer: 2

Question: Q51 Audit work may be performed by members of a large team of auditors
also known as
Answer: engagement team

Question: Q52 The following except ________ are the risk factors that are
generally present when there is misstatements due to fraud
Answer: corporate governance/internal control

Question: Q53 The auditor is responsible for __________

Answer: reporting on fair presentation of financial statements

Question: Q54 The following are examples of misappropriation of assets except

_________
Answer: intentional misapplication of accounting principles

Question: Q55 Intentional misapplication of accounting principles can be reffered

to as ________
Answer: Fraud

Question: Q56 ________ is when a material misstatement is caused by mistake

Answer: Error

Question: Q57 Expectation gaps can be viewed from two dimensions and they include
communication gap and __________
Answer: performance gap

Question: Q58 _________ is defined as an act or omission which occurs because the
person concerned failed to exercise that degree of reasonable skill and care
Answer: Negligence

Question: Q59 _______ is a level of care and competence that will help to minimize
misstatement in the financial statement
Answer: Duty of care

Question: Q60 An auditor shall be liable for __________ where a company suffers
loss due to the failure of its auditors to discharge the fiduciary duty imposed on
him
Answer: negligence

Question: Q61 A long or close relationship with a client or employer that could
make a professional accountant too sympathetic to the interest of the client can
result into a _________ threat
Answer: familiarity

Question: Q62 ________ threat arises when a professional accountant reviews his or
her own work or advice as part of an assurance engagement
Answer: self-review

Question: Q63 Which of the following can be referred to as auditors' self-interest

threat
Answer: close business relationships with clients
Question: Q64 IFAC ethics guideline states that indepence requires independence of
_______ and in appearance
Answer: mind

Question: Q65 The following except _______ are the fundamental ethical priciples
stipulated by IFAC and ICAN
Answer: free disclosure

Question: Q66 External auditors are to report to the audit commiittee who are only
__________ directors
Answer: non-executive

Question: Q67 Audit working papers are to be preserved for at least ____ years
Answer: 7

Question: Q68 According to the Sarbanes-Oxley's Act, ________ assumes

responsibility for the truth and fairness of the Financial statements
Answer: management

Question: Q69 The _________ was established to ensure compliance with the
provision of the Sarbanes-Oxley Act
Answer: Public Corporations Accounting Oversight Board

Question: Q70 The Sarbanes-Oxley Act was passed into law in the year _______
Answer: 2002

Question: Q71 The Financial Reporting Council Act was enacted to take over the
responsibility of the ______
Answer: NASB

Question: Q72 _________ is a process by which money earned from criminal

activities is transformed to appear to have come from a legitimate
Answer: Money laundering

Question: Q73 ________ is applied during the audit of historical financial

information
Answer: ISAs

Question: Q74 _________ is responsible for setting auditing standards in Nigeria

Answer: FRCN

Question: Q75 The acronym IAASB stands for __________

Answer: International Audit and Assurance Standards Board

Question: Q76 Which of the following is an initiative to harmonize the

international regulation of the auditing profession
Answer: the development of national regulation for the auditing profession

Question: Q77 Apart from _________ the following are advantages of adopting global
auditing standards
Answer: international agreement difficulty

Question: Q78 One of the Legal requirements guiding auditing practices in Nigeria
include the following except _______
Answer: ISAs

Question: Q79 The following are sources of regulation of audit and assurance
services except ______
Answer: Academic

Question: Q80 Audit and assurance services are regulated primarily for the
___________ interest
Answer: Public