AUDITNG MCQS WITH ANSWERS

 Q1  You have been proposed as auditor of a company. What is the first step that you should take?

1. Obtain the client’s permission to communicate with the existing auditor
2. Obtain the existing auditor’s working papers
3. Obtain a copy of the company’s most recent board minutes
4. Obtain a copy of the existing auditor’s letter of engagement

ANS. A

Q2  Which of these are types of Audit Report?

1. Unqualified opinion
2. Qualified opinion
3. Adverse opinion
4. Disclaimer of opinion
5. All of above

ANS. E 

Q3 Which one of the following may auditors NOT perform for their client?

1. Taking management decisions
2. Preparation of accounting records
3. Preparing tax computations
4. Advising on weaknesses in the internal control systems

ANS. A 

Q4 Which of the following are fundamental ethical principles for professional accountants?

1 Competence
2 Compliance
3 Integrity
4 Objectivity

1. 1, 2 and 3 only
2. 1, 3 and 4 only
3. 2, 3 and 4 only
4. 1, 2 and 4 only

ANS. B 

Q5 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___________?

1. Self-interest threat
2. Self-review threat
3. Advocacy threat
4. Familiarity threat

ANS. A

Auditing MCQS

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