1.

Analytical procedures are defined in the auditing standards as:

A. compliance tests
B. substantive tests
C. tests of controls
D. helpful procedures not possessing the validity of other tests available to the
auditor.

2. The primary emphasis in most tests of details of balances is on the:

A. balance sheet accounts
B. revenue accounts
C. cash flow statement accounts
D. expense accounts

3. The relationship between detection risks and the assurance provided by the
substantive procedure is _______.
A. Parallel
B. Equal
C. Indirect
D. undetermined

4. Tests of details of balances focus on:

A. beginning of the year balances
B. end of the year balances
C. transaction details for the period under audit
D. accounting cycles

5. It is the measure of quantity of audit evidence

A. Reliability
B. Sufficiency
C. Neutrality
D. Relevance

6. A procedure designed to test for monetary misstatements directly affecting the

correctness of financial statement balances is a:
A. test of controls.
B. substantive test.
C. test of attributes
D. monetary-unit sampling test.

7. Evidence’s reliability is influenced by

A. source
B. Nature
C. Individual circumstances under which it is obtained
D. All of the above

8. It is an additional specific considerations for selected items prescribed by PSA 540

A. Attendance at physical inventory counting
B. Segment information
C. Auditing accounting estimate
 D. Test of controls

9. These are audit evidences obtained as a direct written response to the auditor from a
third party in paper form, or by electronic medium
A. External confirmation
B. Internal confirmation
C. Overall review
D. Substantive test

10. It involves the auditor’s independent execution of procedures or controls that were
originally performed as part of the entry’s internal control
A. Confirmation
B. Analytical procedures
C. Recalculation
D. Reperformance

ANSWER:
1. B
2. A
3. C.
4. B.
5. B
6. B.
7. D.
8. C
9. A.
10. D.