Financial Attest Audit Manual Set 1

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This set of Financial Attest Audit Manual Multiple Choice Questions & Answers (MCQs) focuses on Financial Attest Audit Manual Set 1

Q1 | Financial (attest) audit is primarily concerned with expression of audit opinion on a set of financial statements.
  • FALSE
  • TRUE
  • none
  • all
Answer: TRUE
Q2 | Financial (attest) audit includes:i Examination and evaluaion of financial recordsii Audit of financial systems and transactionsiii Audit of intenal control and internal audit functionsiv Evaluation of Compliance with applicable statutes and regulations
  • (i) only
  • (i) & (ii) only
  • (i) to (iii) only
  • All of the above
Answer: All of the above
Q3 | Financial (attest) audit includes an evaluation of Compliance with applicable statutes and regulations
  • TRUE
  • FALSE
  • none
  • all
Answer: TRUE
Q4 | Transaction audit essentially seeks to address the following issues of risks to:i Regularityii Performanceiii Proprietyiv Financial Control
  • All of the above
  • (i), (ii) & (iii) only
  • (i), (iii) & (iv) only
  • (i), (ii) & (iv) only
Answer: (i), (iii) & (iv) only
Q5 | Transaction audit is linked to a specific assurance on an individual set of financial Statements in a particular year
  • TRUE
  • FALSE
  • none
  • all
Answer: FALSE
Q6 | Risks of financial irregularity are always material for the purpose of qualifying audit opinion on the finanicial statements
  • TRUE
  • FALSE
  • none
  • all
Answer: FALSE
Q7 | The following types of financial statements are audited in respect of Union, State and UT Governmentsi Finance Accountsii Appropriation Accountsiii Balance Sheetiv Statements of Expenditure
  • (i) & (ii) only
  • (i) to (iii) only
  • (i) & (iii) only
  • All of the above
Answer: (i) & (ii) only
Q8 | Financial Audit of Government Companies is conducted by
  • Chartered Accountants appointed by the companies
  • Chartered Accountants appointed by Ministry of Company Affairs
  • Chartered Accountants appointed by C&AG
  • C&AG
Answer: Chartered Accountants appointed by C&AG
Q9 | The audit of financial statements of Government Companies conducted by the C&AG is called
  • Financial Audit
  • Supplementary Audit
  • Attest Audit
  • Compliance Audit
Answer: Supplementary Audit
Q10 | Financial Audit of Autonomous Bodies receiving financial assistance is governed by ______ of CAG's DPC Act 1971
  • 13 & 14
  • 14 & 15
  • 13 & 15
  • 16
Answer: 14 & 15
Q11 | The International Standards of Auditing (ISAs) have been developed by
  • The International Federation of Accountants
  • The International Auditing Practices Committee
  • The Internationa Auditing & Accounting Standards Board
  • The INTOSAI
Answer: The International Federation of Accountants
Q12 | The Auditing Standards of the C&AG of India comprise ofi General Standardsii Field Audit Standardsiii Field Standardsiv Reporting Standards
  • (i) to (iii) only
  • (i) & (ii) only
  • (i), (iii) & (iv) only
  • All of the above
Answer: (i), (iii) & (iv) only
Q13 | Which of these standards regulate the condut of the auditor
  • General Standards
  • Field Audit Standards
  • Field Standards
  • Reporting Standards
Answer: General Standards
Q14 | Which of these standards regulate the audit activity of the auditor
  • General Standards
  • Field Audit Standards
  • Field Standards
  • Reporting Standards
Answer: Field Standards
Q15 | The Primary objective of a financial audit is to
  • Examine the accounts and records
  • Srutinize financial statements
  • Point out overstatements and understatements of account balances
  • Express an opinion on the financial statements
Answer: Express an opinion on the financial statements
Q16 | The general audit objectives are also called
  • Opinions
  • Assertions
  • Criteria
  • None of these
Answer: Assertions
Q17 | Which of these is the correct set of general financial audit objectives for income & expenditure account
  • Completeness, Occurrence, Measurement, Disclosure, Regularity
  • Completeness, Occurrence, Measurement, Disclosure, Existence
  • Completeness, Occurrence, Existence, Disclosure, Regularity
  • Completeness, Ownership, Measurement, Disclosure, Regularity
Answer: Completeness, Occurrence, Measurement, Disclosure, Regularity
Q18 | Which of these is the correct set of general financial audit objectives for balance sheet
  • Completeness , Existence , Valuation , Ownership , Disclosure
  • Completeness , Existence , Measurement , Ownership , Disclosure
  • Completeness , Occurence , Valuation , Ownership , Disclosure
  • Completeness , Regularity , Valuation , Ownership , Disclosure
Answer: Completeness , Existence , Valuation , Ownership , Disclosure
Q19 | The legal right to sue and recover an account receivable is the test of
  • Existence
  • Ownership
  • Completeness
  • None of these
Answer: Ownership
Q20 | This financial audit objective directly tests for potential overstatement of assets and liabilities
  • Existence
  • Ownership
  • Completeness
  • None of these
Answer: Existence
Q21 | Insurance relating to the year 2013-14 was paid in 2012-13 in advance. The same was howeverbooked as expenditure in 2012-13. This does not meet the objective of
  • Existence
  • Ownership
  • Completeness
  • Occurrence
Answer: Occurrence
Q22 | If some item of revenue expenditure is misclassified as capital expenditure, it can be said that this objective is not met
  • Existence
  • Disclosure
  • Completeness
  • Occurrence
Answer: Disclosure
Q23 | If the monthly accounts of some Treasuries or Public Works Divisions are excluded from the Accounts of a State Government, it affects this objective
  • Existence
  • Disclosure
  • Completeness
  • Occurrence
Answer: Completeness
Q24 | A financial audit is intended to give
  • Qualified Assurance
  • Absolute Assurance
  • Positive Assurance
  • None of these
Answer: None of these
Q25 | Materiality is classified by
  • Context
  • Nature
  • Value
  • All of these
Answer: All of these
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