Which audit procedure can ensure valuation?

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Inspection
Confirmation
Observation
Analytical procedure

If the note payable is included in the accounts payable balance on the financial
statement, which assertion is violated?
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Completeness
Existence
Cut off
Classification
Valuation

For large volume of transactions with predictable trend, which test is more
appropriate?
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Test of control
Test of Details
Analytical procedure
Vouching

If the inherent risk is 100%, control risk is 50%, and the detection is 0%, the audit risk
will be:
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50%
5%
100%
0%

Audit risk is high when the detection risk is high.

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True
False

Which audit evidence is most appropriate (relevant) when the auditor is testing the
existence of Accounts receivable balance?
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Vouching
Tracing
Which of the following is NOT the benchmark for materiality?
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1% of gross asset
1% of revenue
1% of profit after tax
1% of turnover

Which control activity is most appropriate for the following scenario? "ABC Ltd. has an
expert personnel who deals with the transactions including making payment and
recording it in the books."
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Authorization
Performance review
Information processing control
Physical control
Segregation of Duties

Which of the following factor impaired the use of internal audit work by external
auditor?
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Internal audit department is a separate department of the organization.
All the internal auditors are chartered Accoutants
Internal auditors scope of work is limited
Internal auditors have applied due professional care

Recording the next year's revenue in current year will violate which assertion?
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Occurrence
Completeness
Accuracy
Cut off
Classification

If the materiality is high, auditors need to collect more audit evidence.

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True
False

Which of the following Assertion is affected when the term of the lease period expired?
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Existence
Rights and obligation
Valuation
Completeness

Which of the following is an example of material misstatement?

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Inventory overstated by Tk. 5000. Total asset is Tk. 50,00,000.
Misappropriation of cash by petty cashier Tk. 5000. Total asset is Tk. 50,00,000
The fair value of PPE is not determined due to unavailability of market. The asset represents 5%
of total asset.
Recording of Accounts receivable 5000 instead of Tk. 50,000. Total asset Tk. 50,00,000

obsolescence in technology is an example of:

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Inherent Risk
Control Risk
Detection Risk
Compliance Risk

For the the following scenario, which risk management action is most appropriate?
"No control over the petty cash".
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Accept the risk
Prevent the risk
Avoid the risk