On This Page
This set of Financial Attest Audit Manual Multiple Choice Questions & Answers (MCQs) focuses on Financial Attest Audit Manual Set 3
Q1 | Which of the following statements are true?
- The Union and State Governments follow cash based accounting while Corporations and autonomous bodies mainly follow accrual based accounting
- The Union and State Governments follow accrual based accounting while Corporations and autonomous bodies mainly follow cash based accounting
- The Union and State Governments and Corporations and autonomous bodies follow accrual based accounting
- The Union and State Governments and Corporations and autonomous bodies follow cash based accounting
Q2 | In the context of Government Accounts in India, the key feeder systems include:
- Treasuries and Sub-Treasuries
- Pay and Accounts Offices
- Forest Divisions
- All of the above
Q3 | In the context of Government Accounts in India, the key feeder systems aslo include State Bank of India or any other public sector bank transacting Government Business on behalf of Reserve Bank of India
- TRUE
- FALSE
- none
- all
Q4 | Which of the following statements is false?
- Planning materiality may be set at a lower level than reporting materiality
- It is easier to plan for errors material by nature
- At the planning stage, the audit team is concerned primarily with materiality by value
- Materiality by context is easy to assess at the planning stage
Q5 | Misclassification of revenue expenditure resulting in a saving in a grant when in fact there has been an excess is an example of.
- Materiality by value
- Materiality by context
- Materiality by nature
- all
Q6 | The risks identified from top down review of entities and which may affect a number ofdifferent account areas are called
- Entity Risks
- Accounting Risks
- Inherent Risks
- Account Area Risks
Q7 | The process for identifying material risk factors has ____ key stages
- Four
- Five
- Six
- Seven
Q8 | The three levels of substantive procedures that can be performed in decreasing order ofassurance required are:
- Standard, Focused, Minimum
- Focused, Standard, Minimum
- Maximum, Standard, Minimum
- Minimum, Standard, Focused
Q9 | The extent of audit procedures and the the level of assurance required are
- Directly related
- Indirectly related
- none
- all
Q10 | The document that presents an analysis of the main audit areas and a summary of the keyplanning decisions is called
- Audit memorandun
- Audit execution memorandum
- Audit Note
- Audit Planning memorandum
Q11 | Instructions to audit team members on the performance of chosen audit procedures arecontained in the
- Plan Document
- Audit Planning memorandum
- Detailed Audit Programme
- None of these
Q12 | These are performed if the audit team identifies a risk that could lead to potential material misstatement and where no reliance can be placed on mitigating controls to address the risk
- Focused Subtantive Procedures
- Standard Substantive Procedures
- Minimum Substantive Procedures
- all
Q13 | These are performed if the audit team has not identified risks that could lead to material misstatement and no reliance is planned to be placed on controls.
- Focused Subtantive Procedures
- Standard Substantive Procedures
- Minimum Substantive Procedures
- all
Q14 | These are Performed if the audit team plans to take assurance from mitigating controls or fromother controls .
- Focused Subtantive Procedures
- Standard Substantive Procedures
- Minimum Substantive Procedures
- all
Q15 | Analytical Procedures are unlikely to be used when these are performed.
- Focused Subtantive Procedures
- Standard Substantive Procedures
- Minimum Substantive Procedures
- all
Q16 | Which of the following statements is false?
- Documentary evidence is more reliable than oral evidence.
- Evidence, of which the auditor has direct personal knowledge, is the most reliable evidence.
- Independent evidence obtained from external sources is more reliable than internal evidence.
- Visual evidence is highly reliable for confirming the ownership of the assets and their value.
Q17 | Which of the following statements is True?
- Oral evidence must be considered as the least reliable.
- Photocopies are as reliable as the originals.
- Evidence, which is accepted by the auditee entity, is not always reliable.
- The auditor may gain increased assurance even when audit evidence obtained from different sources is not consistent.
Q18 | Which of the following is False?
- A systematic error is one which will only occur in defined circumstances
- A systematic error affects only a proportion of the population
- A random error is one which coul
- have also occurred in any of the tr
Q19 | Which of the following is True?
- A systematic error should be extrapolated over the entire population
- A random error is to be extrapolated over a defined subset of population
- Both A & B
- None of these
Q20 | The audit working papers contain
- the details of the audit procedures undertaken
- conclusions drawn and the implications for the audit opinion
- the record of the reasoning on all significant matters where the members of the audit teams have exercised judgment
- all of the above
Q21 | The acid test for good documentation is
- when it is appreciated by the higher authorities
- when it results in good quality audit observations
- when it results in giving a clean chit to the entity observed
- that an experienced auditor with no previous connection with the audit should be able, without difficulty, to ascertain the evidence gathered and understand and support the conclusions reached.
Q22 | Which of these broad characteristics of audit working papers applies particularly to photocpies
- Clarity and conciseness
- Legibility and neatness
- Completeness
- Accuracy
Q23 | Working papers should be restricted to matters, which are important, pertinent and useful forthe purpose. Which is the characteristic that we are talking about?
- Clarity and conciseness
- Legibility and neatness
- Relevance
- Accuracy
Q24 | If the financial statements properly present receipts and payments or give a true and fair viewand have been prepared in accordance with relevant accounting requirements, the auditor
- does not give any opinion
- gives a qualified opinion
- gives an unqualifie
- opinion
Q25 | A material but not fundamental uncertainty would lead to
- disclaimer
- qualified opinion
- unqualified opinion
- adverse opinion