d) None of the above A 175. Window dressing implies Examining the physical existence and valuation of assets.B. d) Term of appointment & responsibilities completion of the audit work on timely and daily basis, so as to minimise audit risk. c) External audit 105. Preliminary expanses not written off are treated as D. Purchases. A fixed audit programme is also called a _____ programme a) Chairman of the company Errors of omission are d) Ledger accounts c) Employees Civil liability of an auditor implies liability for c) Doubtful debts c) Both internal audit and internal check c) Prospectus Balance sheet auditC. d) London oil Storage Co. case Capital profits d) None of the above 44. C c) General 93. b) The client b) Audit undertaken to improve auditing systems d) Financial audit d) None of the above PAPER – 6: INFORMATION SYSTEMS CONTROL AND AUDIT QUESTIONS MULTIPLE CHOICE QUESTIONS 1. _______ are the documents prepared or obtained by the auditors in connection with 151. d) None of the above, 10. d) All of the above 145. 65. b) Cost Examination of adjusting and closing entriesD. b) False 28 When is evidential matter, generally, considered sufficient? The term ________ implies an examination of accounts and rewards for some special All of the above. a) Vouching c) Social audit ______ contains information pertaining to financial history, memorandum of d) All of the above Checking of selected number of transactionsC. C 121. b) Cash memo Objective of internal check with regard to wages is __________. Ltd. are as follows: ... You are appointed as an Internal Auditor to XYZ Pvt. D c) Asset protection 21. The objectivity and integrity of the auditorC. d) All of the above d) Extend of liabilities a) Statutory audit C 190. None of the above. b) Error of omission c) A detective C 61. 21 Floating assets are valued at____________? a) Qualified opinion c) Both the client and the auditor a) Inspection 17. c) Beginning of the year c) Accountant c) Government a) Remuneration Ledger posting A 32. Government, the first auditor shall be appointed by _________ 104. c) Issue of bonus shares d) Balance sheet and profit and loss account b) Intangible assets Effective internal check system reduces A 136. c) Internal check a) Audire a) 3 c. communicating the auditor’s findings to the reader. Bank statements obtained from the clientB. Share premium account should be shown in the Balance sheet under 78. affairs of the client’s business. c) Duties arising out of professional etiquette c) Audit report B 56. c) Error of duplication Auditor has to report to_________ Internal check is carried on by A 68. d) Company or every officer of the company 177. C d) None of the above statements 41. D 69. B 181. c) 1 c) Shareholders None of the above. c) Audit plan 31. 18. d) Any general meeting B. to know that all receipts and payments have been properly recorded. c) Human resources legislations on him. an offence punishable with fine, who of the following are the persons on whom such 50. c) Valuation has nothing to do with verification 100. An audit programme is a set of _______ which are to be followed for proper Government have established the __________, a specialized, multidisciplinary organization to deal with cases of corporate fraud. 16 In determining the level of materiality for an audit, what should not be considered? b) Actual d) Audit by two firms of C.A b) Correspondence with suppliers 4 Audit of banks is an example of_____________? b) Misappropriation of goods c) All of these 25 In an audit of financial statements, substantive tests are audit procedures that __________? a. d) Need not possess any professional qualification C 160. b) Oral evidence D 196. c) Debtors schedule a) Shareholder c) Matters relating to the year of audit and data in each computer-based application system. Book debts should be verified with the help of e) Shareholders 7 Institute of Chartered Accountants of Pakistan was established in____________? Auditor is an ________ of a shareholder c) Depreciation c) Audit of joint sector companies D 85. Divisible profit should not include b) Scrap value c) Accounting and Audit policies Test checking is done when there is an effective system of ________. Curtailment of expensesB. B 193. Internal auditorC. a) Going concern a) Responsible & senior officers 91. Which of the following are performed as risk assessment procedures? d) None of the above b) Throughout the year 156. d) None of the above d) An insurer If the statutory time limit of _____ years is over, the money being in B 174. b) Audit working papers Auditor’s report is the expert’s opinion expressed by the auditor as to the fairness b) Company in general meeting 180. Sufficient audit evidence is a measurement of ______ 191. b) Smaller concerns c) Tax d) All of the above The reliability of audit evidence is influenced by its b) Performance It helps to discover material misstatements in the financial statementsC. a) Directors a) To make written representation d) Shareholders minutes Book Internal auditor is an auditor appointed by the management. d) None of the above 10. 80. C 38. a) Internal evidence A 55. Estimates of the total likely misstatement is less than materiality levelC. a) Inspection Completed auditC. C 48. a) Memorandum of association company owned or controlled by the Central Government, or by any State 114. The meeting held by the company with in a period of not less than one month Accounts examined by him. conclusion when the subject matter information is materially misstated. b) Audit working papers The auditor’s report shall be attached to_________. b) Shares forfeited Account Sec.140 of the Companies Act 2013 deals with ________. a) Corporate security c) Complete audit d) Negative opinion a) Quality of audit evidence c) Postal sales Higher, Lower, LowerD. Lower, Lower, HigherC. When assessing an internal auditor's objectivity, an independent auditor should A.Perform tests of controls to determine whether significant internal control activities are properly maintained. Application money should not be withdrawn unless Misappropriation of goods may be checked by d) All of the above a) The liability of auditor b) Bank Statement d) Internal control c) Companies Act, 1956 190. Lower, Higher, Higher. Senior Auditor by Fpsc, Junior Auditor, Accountant, Internal Auditors, External Auditors. B 131. to buy another established concern, the investigator will be required to examine e) Audit of Govt. 25. costB. An invitation to the public to subscribe the shares of the company is called______. b) Audit report 5. Required fields are marked *. d) Responsible officials The retiring auditor does not have a right to______ C 95. B. d) Audit of accounts at the end of the year a) Layout versus schematic c) Occasional audit a) Internal audit evidence 6 Audit in depth is synonymous for____________? Mcq Added by: admin. The internal auditors c. Management and those charged with governance d. d) Remuneration of an auditor D 78. c) Examination accounts of propriety concerns b) Subscribed capital c) Journal proper a) A person or entity under common control All are correct. Approach to computer auditing is known as _______. B 41. D 28. c) Appointment of an auditor Internal auditors are employed to educate management and staff about how the … A d. There are frequent changes of auditors lawyers. b) Owners who are close family members future. a) Audit programme a) Establish controls and executes them a. independent financial auditors. b) Intangible assets a) Management 69. The auditor must have a thorough understanding of the entity, the client’s business a) 20 42. b) On acquisition of running business d) All of these 108. d) Skeleton d) C & A – G d) All of the above a) Creditors statement A 104. b) Clerks C. Credit transactions C 147. c) Legal compliance a) Logical Equivalence Checking c) Employees b) Employees & Management _______ committee acts as a laison between the auditors of the company and its bord c) Assurance judgment Risk b) Internal control system 136. a) Paid-up capital b) Audit report Both must be independent of the company. 13 Which of the following statements is not correct about materiality? 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