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Answer : C
2. In the company whose F.S are an unaudited , has engaged a CPA to make a special review or
report on in this accounting control or in general which of the following to this report is least
useful
a. In this management
b. The independent auditor in this parent company
c. A regulatory agencies having jurisdiction
d. Present and prospective customers
Answer : D
3. It is not an audit objective when audit manufacturing equip and depreciation to determine
whether
a. Cost and related revelation , abandonment or disposals
b. Balances of the property account , in the preceding year are properly stated
c. Addition represent actual property whether resolve or rented
d. Balances in accumulated account are reasonable , units and possible net salvage
Answer : C
4. In order to make materiality decision when a condition are requiring , the auditor must evaluate
a. All effects on the financial statement
b. The effect of the financial statement which contains the erroneous account
c. Magnitude of the errors of the account involve
d. the effect of both the financial statement and balance sheet
Answer : A
5. The audit profession recognizes the need for uniformity in reporting as a means of
a. Defending against capricious losses
b. Upgrading the communication skills of auditor
c. Standardizing the policies of values of CPA
d. Avoiding confusion
Answer : D
6. An audit engagement perform by the CPA firm with one office at the minimum knowledge of the
relevant professional accounting standard, should be held by
a. the auditor with final responsibility of the audit
b. All professional working upon the audit
c. All professional working upon the audit and the partner in charge of the CPA firm
d. All the prof working in the office
Answer: A.
11. The auditors best defense when material misstatements are not uncovered in the audit is that
A. The audit was conducted in accordance with PSA
B. The audit was conducted with GAAP
C. Client is guilty of contributing negligence
D. The Financial Statement are the client’s responsibility
Answer : A
12. While performing a substantive test of details during an audit the auditor determines that
sample conclusion that recorded in the balance was materially misstated it was in fact not
martially misstated, this illustration illustrate the risk of
A. Alpha risk
B. Beta risk
C. Assessing control risk too low
D. Assessing control risk too high
Answer : A
13. Most of the independent auditor’s work in formulating an opinion n f.s consists of
A. Obtaining and examining evidence
B. studying
C. Examining cast transact
D. Comparing recorded accountability with asset
Answer : A
14. A CPA shall not disclose confidential information obtain during of audit engage in
A. To a successor of auditor without the client’s permission
B. , when sued by client
C. With the consent of the client
D. When a security f the state requires
Answer :
17. In planning the audit engagement, the auditor should consider each of the following, except
A. The kind of opinion that are likely to be expressed
B. Anticipated level of control risk and materiality
C. The entities Accounting policies and procedures
D. Matter relating of the accounting matter and business which operates.
Answer : A
19. An important aspect of control is the separation of incompatible duties among the client’s
employees this is often difficult to implement in an IT Environment because
A. authorization, procedures are difficult to implement when using it system
B. frequently it system are design to allow employees to access in computer authorization
C. IT system lack the paper require to identify who
D. Accounting function are concentrated in the computer
Answer : D
20. Which of the following circumstances, most likely would cause an auditor would believe that a
material
A. There were substantial payments for services that appear
B. Operating a financing decision are dominated by top management
C. Auditor trails of computer generated of transact exist only on short period of time
D. The chief financial officer , until the last day of auditor field work
Answer : A
22. Which of the following elements of the auditor’s report affirms the auditor’s independence
a. introductory paragraph
b. auditors’ responsibility
c. title
d. signature
Answer : C
23. The auditors opinion covers the complete set of financial statement, a complete set of financial
statement does not include
A. Statement of changes In financial position
B. Statement of comprehensive income
C. Statement of cash flow
D. Summary of significant accounting policies and other explanatory explanation
Answer : A