Practice Test

Q1) Audit plans should be based on knowledge of the client's_______ Show Answer

Q2) An audit programme may be Show Answer

Q3) _____ papers is the link between the client's records and the auditor's report Show Answer

Q4) Working papers are the property of the Show Answer

Q5) Audit programme is prepared by Show Answer

Q6) Audit working papers record Show Answer

Q7) Current audit file relating to audit of a partnership firm will not contain Show Answer

Q8) Which of the following is not an advantage of the preparation of working paper? Show Answer

Q9) An auditor cannot have any lien on the books of accounts of the company audited by him Show Answer

Q10) Current file and permanent file are together known as Show Answer

Q11) The auditor should plan his work to enable him to conduct an _____ audit in an efficient and timely manner Show Answer

Q12) Working paper are the property of the______. Show Answer

Q13) AAS ____deals with audit working papers Show Answer

Q14) Audit plans should establish the expected degree of ____to be placed on internal control. Show Answer

Q15) Audit plans should determine the nature, timing and extent of the audit ______to be per formed Show Answer

Q16) Audit planning should be __throughout the audit engagement Show Answer

Q17) Adequate audit planning helps to ensure that appropriate attention is devoted to ____areas of the audit. Show Answer

Q18) Adequate audit planning helps to ensure that ______ are promptly identified Show Answer

Q19) Audit planning involves developing ______for the expected scope & conduct of the audit Show Answer

Q20) Audit planning involves developing _______showing the nature, timing and extent of audit procedures Show Answer

Q21) Adequate audit planning helps to co-ordinate the work done by________. Show Answer

Q22) Copies of audited accounts of earlier years will be filed in the ____audit file. Show Answer

Q23) Trial balance for year under audit will be filed in the _____audit file Show Answer

Q24) Audit _____will enable the auditor to conduct an effective audit in an efficient and timely manner Show Answer

Q25) Audit _____mean the steps taken to obtain audit evidence. Show Answer

Q26) Audit procedures can be classified basically into _____ procedures and _____procedures Show Answer

Q27) _______procedures are the steps taken to obtain evidence regarding the internal controls Show Answer

Q28) 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

Q29) The steps taken by the auditor to obtain evidence regarding the transactions during the year are known as_____procedures. Show Answer

Q30) Evidence obtained from ______procedures determines the nature, timing and extent of the ______procedures. Show Answer

Q31) _______is substantive audit procedure used in order to obtain evidence regarding the transactions during the accounting year Show Answer

Q32) ________checking is the procedure to check the totals of the books, ledgers etc Show Answer

Q33) ___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

Q34) ______is the audit procedure to check the balanceof various accounts as at the end of the year. Show Answer

Q35) Audit ______mean the methods used to obtain audit evidence Show Answer

Q36) Audit technique of _______consists of observing a procedure being performed by others. Show Answer

Q37) Audit technique of ______consists of seeking information from others. Show Answer

Q38) Audit technique of __________means a formal inquiry from outsiders Show Answer

Q39) Audit plans once developed should never be revised during the course of the audit Show Answer

Q40) After the auditor discusses his overall plan with the client, the overall audit plan and the audit programme become their joint responsibility Show Answer

Q41) Auditor should develop a standard audit programme applicable to all audits permanently Show Answer

Q42) An auditor cannot have any lien on the books of accounts of the company audited by him Show Answer

Q43) An audit programme should not be in writing as it is confidential Show Answer

Q44) An audit programme serves as an evidence of a true and fair view of the state of affairs of the company Show Answer

Q45) An audit programme shows the programme for preparation of the financial statements of the company Show Answer

Q46) Audit Programme helps to fix the responsibility of each audit assistant in case of any mistake or negligence. Show Answer

Q47) 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

Q48) An audit note book is the property of the audit assistants and need not be shown to the auditor Show Answer

Q49) Material errors and frauds discovered during the audit should be recorded in the audit note book Show Answer

Q50) A copy of the audit working papers should also be given to the company for their reference Show Answer

Q51) 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

Q52) 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

Q53) Audit plan should be primarily based on knowledge of accounting standards Show Answer

Q54) Audit plans are confidential and should never be discussed with the client being audited. Show Answer

Q55) AAS 8 recommends that audit programmes should be fixed and auditor should not change the audit programme once the audit commences Show Answer

Q56) Electronic records (email) obtained by auditor from client form part of working papers. Show Answer

Q57) Internal audit report is the property of the internal auditor and statutory auditor has no right to inspect the same Show Answer

Q58) The old auditor must hand over his working papers to the new auditor appointed in his place. Show Answer

Q59) Audit techniques mean the steps taken to obtain audit evidence Show Answer

Q60) Audit procedures mean the methods used to obtain audit evidence. Show Answer

Q61) Audit techniques can be classified basically into (1) compliance techniques and (2) substantive techniques Show Answer

Q62) Substantive procedures are the steps taken to obtain evidence regarding the internal controls. Show Answer

Q63) 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

Q64) Verification is the audit procedure used in order to obtain evidence regarding the transactions during the accounting year. Show Answer

Q65) Vouching is the audit procedure to check the balances of various accounts as at the end of the year. Show Answer

Q66) The audit technique of observation consists of examining records, documents or tangible assets Show Answer

Q67) The audit technique of inspection consists of observing a procedure being performed by others Show Answer

Q68) The audit technique of inquiry consists of seeking formal confirmation from outsiders Show Answer

Q69) The audit technique of confirmation is a formal inquiry from insiders Show Answer

Q70) 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

Q71) 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

Q72) Audit Note book is also called as Show Answer

Q73) Audit programme is prepared by Show Answer

Q74) AAS ______deals with audit planning Show Answer

Q75) working papers are Show Answer

Q76) Auditor carry out various audit compliance Show Answer

Q77) Internal reports include Show Answer

Q78) Audit is mainly related to Show Answer

Q79) While developing audit programme the following factor should be considered Show Answer

Q80) For an auditor sources of obtaining information is Show Answer

Q81) Audit programme should be Show Answer

Q82) The auditor needs to obtain knowledge of the client's business that will enable auditor to identify Show Answer

Q83) Audit programmes are generallly prepared with the columns like Show Answer

Q84) Objective of audit planning is Show Answer

Q85) Advantage of Audit programs Show Answer

Q86) If the auditor is satisfied with internal control then the extent of examination is Show Answer

Q87) Disadvantage of Audit programs Show Answer

Q88) Which is not a legal documents of business Show Answer

Q89) Audit programme contains information about Show Answer

Q90) Audit memoranda is also called as Show Answer

Q91) Provision in _______validates the appointment of auditor. Show Answer

Q92) Current file contains Show Answer

Q93) Before starting audit work auditor should examine Show Answer

Q94) Audit plan should be based on client's Show Answer

Q95) Factors determining form and contents of audit working paper is Show Answer

Q96) ______papers are the link between the client records and audit report Show Answer

Q97) In case of recurring audit working papers can be divided in to Show Answer

Q98) What are the contents of permanent audit file Show Answer

Q99) The current file normally contains Show Answer

Q100) Reply to all non-routine requests must be Show Answer

Q101) General information in audit note book include Show Answer

Q102) An audit programme may be Show Answer