Auditing-MCQ5 - d. Auditor unknowingly failed to modify his...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Auditing-MCQ5 While reviewing the financial statements of a client an auditor is always alert to identify any: a. Evidential matter b. Reasonable assurance c. Materiality d. Misstatement Which of the following, if material, would be fraud? a. Misinterpretations of facts that existed when the financial statements were prepared b. Mistakes in the application of accounting principles c. Clerical mistakes in the accounting data underlying the financial statements d. Management appropriation of entity assets for personal use
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Audit risk can be explained as: a. Failure of the auditor to identify risk in the sample tested b. The evidence obtained by the auditor does not support the audit finding c. Failure of the auditor to draw a representative sample
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: d. Auditor unknowingly failed to modify his opinion on financial statements that are materially misstated Independence of an internal auditor is likely to be compromised when he/she reports to: a. Audit committee of the Board b. Principal of the audit firms c. Finance manager of the company d. Board of Directors of the company While reviewing the internal control mechanism of a client, an auditor is mainly concerned with: a. The capability of the mechanism to highlight any variations b. The controls built in the mechanism c. The possibility of any leakage in the mechanism d. Implementation of the control system...
View Full Document

This note was uploaded on 04/07/2012 for the course BUSINESS 1023 taught by Professor Msaeed during the Spring '12 term at CSU Channel Islands.

Page1 / 3

Auditing-MCQ5 - d. Auditor unknowingly failed to modify his...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online