Practice Test


Q1) An _______ lays out the strategies to be followed to conduct on audit. Show Answer


Q2) An audit plan includes the ________. Show Answer


Q3) Which of the following should considered by the auditor before planning for an audit? Show Answer


Q4) Which of the following should considered by the auditor before planning for an audit? Show Answer


Q5) The auditor before planning for an audit should consider degree of reliance expected to be placed on ________. Show Answer


Q6) Which of the following should considered by the auditor before planning for an audit? Show Answer


Q7) Which of the following should not be considered by the auditor before planning for an audit? Show Answer


Q8) An ______ is a set of instructions which are to be followed for proper execution of audit. Show Answer


Q9) An audit program largely depends ______. Show Answer


Q10) _______ are the official record that contains the planning and execution of the audit agreement. Show Answer


Q11) Which of the following is advantage of audit programme? Show Answer


Q12) Which of the following is advantage of audit programme? Show Answer


Q13) Which of the following is advantage of audit programme? Show Answer


Q14) Which of the following is Limitation of audit programme? Show Answer


Q15) _________ is information used by the auditor in arriving at the conclusions on which the auditor's opinion is based. Show Answer


Q16) The auditor has to obtain _______ evidence to substantiate his opinion on the financial statements. Show Answer


Q17) The audit evidence are said to be sufficient when they are in __________. Show Answer


Q18) Evidences obtained by auditor are ______. Show Answer


Q19) Evidences obtained by auditor are persuasive rather than conclusive in nature therefore evidence ________. Show Answer


Q20) _______ is usually better than testimonial evidence. Show Answer


Q21) Audit evidence is more reliable when the auditor obtains consistent evidence ____. Show Answer


Q22) _______ evidence is better than ______ evidence. Show Answer


Q23) Evidence generated through the auditor's direct _______ is usually better than evidence obtained indirectly. Show Answer


Q24) Which of the following is/are technique of obtaining audit evidence? Show Answer


Q25) Which of the following is/are technique of obtaining audit evidence? Show Answer


Q26) ______ are the documents prepared or obtained by the auditors and retained by him in connection with the audit. Show Answer


Q27) The working papers are the property of the _______. Show Answer


Q28) If audit working papers are disclosed than it will amount to _________. Show Answer


Q29) Which of the following is type of audit working papers? Show Answer


Q30) A permanent audit file normally includes ? Show Answer


Q31) The current file normally includes ______. Show Answer


Q32) Record of communication with the retiring auditor can be included in ________. Show Answer


Q33) A permanent audit file normally includes ? Show Answer


Q34) A current audit file normally includes ________. Show Answer


Q35) Audit plans should be based on knowledge of the client's_______ Show Answer


Q36) An audit programme may be Show Answer


Q37) _____ papers is the link between the client's records and the auditor's report Show Answer


Q38) Working papers are the property of the Show Answer


Q39) Audit programme is prepared by Show Answer


Q40) Audit working papers record Show Answer


Q41) Current audit file relating to audit of a partnership firm will not contain Show Answer


Q42) Which of the following is not an advantage of the preparation of working paper? Show Answer


Q43) An auditor cannot have any lien on the books of accounts of the company audited by him Show Answer


Q44) Current file and permanent file are together known as Show Answer


Q45) The auditor should plan his work to enable him to conduct an _____ audit in an efficient and timely manner Show Answer


Q46) Working paper are the property of the______. Show Answer


Q47) AAS ____deals with audit working papers Show Answer


Q48) Audit plans should establish the expected degree of ____to be placed on internal control. Show Answer


Q49) Audit plans should determine the nature, timing and extent of the audit ______to be per formed Show Answer


Q50) Audit planning should be __throughout the audit engagement Show Answer


Q51) Adequate audit planning helps to ensure that appropriate attention is devoted to ____areas of the audit. Show Answer


Q52) Adequate audit planning helps to ensure that ______ are promptly identified Show Answer


Q53) Audit planning involves developing ______for the expected scope & conduct of the audit Show Answer


Q54) Audit planning involves developing _______showing the nature, timing and extent of audit procedures Show Answer


Q55) Adequate audit planning helps to co-ordinate the work done by________. Show Answer


Q56) Copies of audited accounts of earlier years will be filed in the ____audit file. Show Answer


Q57) Trial balance for year under audit will be filed in the _____audit file Show Answer


Q58) Audit _____will enable the auditor to conduct an effective audit in an efficient and timely manner Show Answer


Q59) Audit _____mean the steps taken to obtain audit evidence. Show Answer


Q60) Audit procedures can be classified basically into _____ procedures and _____procedures Show Answer


Q61) _______procedures are the steps taken to obtain evidence regarding the internal controls Show Answer


Q62) The steps taken by the auditor to obtain evidence regarding the balances of the assets and liabilities as at the year end are known as ______procedures Show Answer


Q63) The steps taken by the auditor to obtain evidence regarding the transactions during the year are known as_____procedures. Show Answer


Q64) Evidence obtained from ______procedures determines the nature, timing and extent of the ______procedures. Show Answer


Q65) _______is substantive audit procedure used in order to obtain evidence regarding the transactions during the accounting year Show Answer


Q66) ________checking is the procedure to check the totals of the books, ledgers etc Show Answer


Q67) ___is the procedure to check and review the accounts of parties, assets, liabilities, income and expenses in the debtor's ledger. Creditor's ledger, and the general ledger Show Answer


Q68) ______is the audit procedure to check the balanceof various accounts as at the end of the year. Show Answer


Q69) Audit ______mean the methods used to obtain audit evidence Show Answer


Q70) Audit technique of _______consists of observing a procedure being performed by others. Show Answer


Q71) Audit technique of ______consists of seeking information from others. Show Answer


Q72) Audit technique of __________means a formal inquiry from outsiders Show Answer


Q73) Audit plans once developed should never be revised during the course of the audit Show Answer


Q74) After the auditor discusses his overall plan with the client, the overall audit plan and the audit programme become their joint responsibility Show Answer


Q75) Auditor should develop a standard audit programme applicable to all audits permanently Show Answer


Q76) An auditor cannot have any lien on the books of accounts of the company audited by him Show Answer


Q77) An audit programme should not be in writing as it is confidential Show Answer


Q78) An audit programme serves as an evidence of a true and fair view of the state of affairs of the company Show Answer


Q79) An audit programme shows the programme for preparation of the financial statements of the company Show Answer


Q80) Audit Programme helps to fix the responsibility of each audit assistant in case of any mistake or negligence. Show Answer


Q81) Distribution of duties to audit staff for checking of accounts must be made in consultation with the management of the company so that they work together to complete the audit in time Show Answer


Q82) An audit note book is the property of the audit assistants and need not be shown to the auditor Show Answer


Q83) Material errors and frauds discovered during the audit should be recorded in the audit note book Show Answer


Q84) A copy of the audit working papers should also be given to the company for their reference Show Answer


Q85) The purpose of audit working papers is served as soon as the audit report for the year is submitted they need not be retained for the future Show Answer


Q86) An audit programme is at best an evidence for the quantitative aspects of an audit but it cannot reveal the quality of audit or an error of judgment Show Answer


Q87) Audit plan should be primarily based on knowledge of accounting standards Show Answer


Q88) Audit plans are confidential and should never be discussed with the client being audited. Show Answer


Q89) AAS 8 recommends that audit programmes should be fixed and auditor should not change the audit programme once the audit commences Show Answer


Q90) Electronic records (email) obtained by auditor from client form part of working papers. Show Answer


Q91) Internal audit report is the property of the internal auditor and statutory auditor has no right to inspect the same Show Answer


Q92) The old auditor must hand over his working papers to the new auditor appointed in his place. Show Answer


Q93) Audit techniques mean the steps taken to obtain audit evidence Show Answer


Q94) Audit procedures mean the methods used to obtain audit evidence. Show Answer


Q95) Audit techniques can be classified basically into (1) compliance techniques and (2) substantive techniques Show Answer


Q96) Substantive procedures are the steps taken to obtain evidence regarding the internal controls. Show Answer


Q97) Compliance procedures are the steps taken by the auditor to obtain evidence regarding the transactions during the year and the balances of the assets and liabilities as at the year end. Show Answer


Q98) Verification is the audit procedure used in order to obtain evidence regarding the transactions during the accounting year. Show Answer


Q99) Vouching is the audit procedure to check the balances of various accounts as at the end of the year. Show Answer


Q100) The audit technique of observation consists of examining records, documents or tangible assets Show Answer


Q101) The audit technique of inspection consists of observing a procedure being performed by others Show Answer


Q102) The audit technique of inquiry consists of seeking formal confirmation from outsiders Show Answer


Q103) The audit technique of confirmation is a formal inquiry from insiders Show Answer


Q104) Consider the stages in audit given below.
(1)ascertain type of audit
(2)vouch receipts and payments
(3)obtain documents from client
(4)prepare audit programme
What is the correct sequence of the above stages. Show Answer


Q105) Consider the following documents
(1)audit notebook
(2)audit report
(3)audit programme
(4)audit plan
What is the correct sequence in which the documents are prepared? Show Answer


Q106) Audit Note book is also called as Show Answer


Q107) Audit programme is prepared by Show Answer


Q108) AAS ______deals with audit planning Show Answer


Q109) working papers are Show Answer


Q110) Auditor carry out various audit compliance Show Answer


Q111) Internal reports include Show Answer


Q112) Audit is mainly related to Show Answer


Q113) While developing audit programme the following factor should be considered Show Answer


Q114) For an auditor sources of obtaining information is Show Answer


Q115) Audit programme should be Show Answer


Q116) The auditor needs to obtain knowledge of the client's business that will enable auditor to identify Show Answer


Q117) Audit programmes are generallly prepared with the columns like Show Answer


Q118) Objective of audit planning is Show Answer


Q119) Advantage of Audit programs Show Answer


Q120) If the auditor is satisfied with internal control then the extent of examination is Show Answer


Q121) Disadvantage of Audit programs Show Answer


Q122) Which is not a legal documents of business Show Answer


Q123) Audit programme contains information about Show Answer


Q124) Audit memoranda is also called as Show Answer


Q125) Provision in _______validates the appointment of auditor. Show Answer


Q126) Current file contains Show Answer


Q127) Before starting audit work auditor should examine Show Answer


Q128) Audit plan should be based on client's Show Answer


Q129) Factors determining form and contents of audit working paper is Show Answer


Q130) ______papers are the link between the client records and audit report Show Answer


Q131) In case of recurring audit working papers can be divided in to Show Answer


Q132) What are the contents of permanent audit file Show Answer


Q133) The current file normally contains Show Answer


Q134) Reply to all non-routine requests must be Show Answer


Q135) General information in audit note book include Show Answer


Q136) An audit programme may be Show Answer