Auditing-MCQ3 - a He has verified all aspects of the...

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MCQ No. 3 1. An auditor will add weight to his audit findings by obtaining relevant: a. Records b. Documents c. Sample d. Evidence 2. Conflict of interest, in external auditing, in fact means: a. Auditor issues unqualified audit report b. Material misstatements not reported by auditor c. Auditor issues qualified audit report d. Auditor reports material misstatements 3. The term ‘materiality’ refers to: a. The error identified by an auditor is insignificant b. The error identified by an auditor is small c. The error identified by an auditor is significant d. The error identified by an auditor is large 4. A ‘qualified audit report’ is generally issued by an auditor when:
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Unformatted text preview: a. He has verified all aspects of the financial statements b. He could not verify any one or more aspects of the financial statements c. He had no time to verify a particular aspect of the financial statements d. He was not sure as to the accuracy of a particular aspect of the financial statements 5. Auditor normally decides, before start of an audit, his ‘confidence level’ and ‘tolerable error’. If the rate of error exceeds tolerable rate, an auditor will: a. Decrease the sample size b. Stop the audit and abstain c. Report the matter to his seniors d. Increase the sample size...
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Auditing-MCQ3 - a He has verified all aspects of the...

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