Utilizing MCQs is considered an effective method to assess a student’s understanding of a concept. The auditing MCQs are available on GuruMcQs.com and prepared by subject experts, aligning with current trends and practices. These MCQs are particularly beneficial for competitive examinations and tests such as PPSC, FPSC, SPSC, KPPSC, BPSC, and ETEA. They are also valuable for various job positions like Senior Auditor, Junior Auditor, Accountant, Internal Auditors, and External Auditors. Covering topics such as Basic Auditing, Financial Audit, Income Tax Audit, Internal Audit, Operational Auditing, and more, these MCQs offer comprehensive preparation. Additionally, you can find Cost Accounting MCQs with answers on the platform.
51. Which of the following statements is INCORRECT?
A. An auditor may serve on the board of directors of an audit client.
B. An auditor who is an immediate family member of the director of an audit client must not be assigned to the audit team.
C. Purchasing goods from an audit client on normal commercial terms does not create a threat to the auditor’s independence.
D. An auditor who was recently a director of an audit client must not be assigned to the audit team for that client.
52. An auditor should not accept a loan on favourable commercial terms from an audit client because of the threat to his or her independence. The threat would be a___________?
A. Self-interest threat
B. Self-review threat
C. Advocacy threat
D. Familiarity threat
53. Which of the following are fundamental ethical principles for professional accountants?
1 Competence
2 Compliance
3 Integrity
4 Objectivity
A. 1, 2 and 3 only
B. 1, 3 and 4 only
C. 2, 3 and 4 only
D. 1, 2 and 4 only
54. Which one of the following may auditors NOT perform for their client?
A. Taking management decisions
B. Preparation of accounting records
C. Preparing tax computations
D. Advising on weaknesses in the internal control systems
55. You have been proposed as auditor of a company. What is the first step that you should take?
A. Obtain the client’s permission to communicate with the existing auditor
B. Obtain the existing auditor’s working papers
C. Obtain a copy of the company’s most recent board minutes
D. Obtain a copy of the existing auditor’s letter of engagement
56. Which of these are types of Audit Report?
A. Unqualified opinion
B. Qualified opinion
C. Adverse opinion
D. Disclaimer of opinion.
All of above
57. Pick the odd one:
A. Checking the vouchers
B. Preparation of vouchers
C. Evaluation of internal control
D. None of the above
58. Which of the following is not type of engagement standard?
A. Standards on Auditing
B. Standard on Quality Control
C. Standards on Review Engagement
D. Standards on Assurance Engagement
59. How many Standards on Auditing have been issued?
A. 32
B. 34
C. 36
D. 38
60. Auditing engagement can be performed w.r.t.
A. Profit making entity
B. Non-profit making entity
C. Corporate entity only
D. Any entity