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Sample MCQ For Assurance - Chapter 03 - Mamun
Sample MCQ For Assurance - Chapter 03 - Mamun
(a) True
(b) False
3. Audit plan sets out which of the following procedures to obtain sufficient
appropriate audit evidence:
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(d) Consequent nature, timing and extent of procedures
(e) Co-ordination, direction, supervision and review
(f) All of the above
7. To obtain an understanding of the entity and its environment, the auditor shall
understand:
(a) Inquiry
(b) Recalculation
(c) Analytical procedures
(d) Re-performance of a control
(e) Observation and inspection
9. Which three of the following would ordinarily be contained in the overall audit
strategy?
(a) The contract between the audit firm and the client
(b) The results of audit risk assessment
(c) Calculation of preliminary materiality
(d) Detailed plan of audit procedures to be carried out
(e) List of staff to be involved with the audit
(a) Inspection
(b) Observation
(c) Inquiry
(d) Analytical procedures
(e) Computation
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12. Professional skepticism does not mean that auditors should disbelieve everything
they are told; however, they must have a questioning attitude.
(a) True
(b) False
14. Analytical procedures are often carried out on payroll costs as there are strong
relationships among
15. Materiality is of
(a) True
(b) False
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19. There is no golden rule for calculation of materiality. It’s a matter of auditor’s
professional judgment.
(a) True
(b) False
(a) True
(b) False
(a) False
(b) True
22. The audit team is required to discuss the susceptibility of the financial
statements to material misstatements.
(a) True
(b) False
23. Audit risk is the risk that the auditors give an inappropriate opinion on the
financial statements.
(a) True
(b) False
24. Inherent risk is the risk that items will be misstated due to characteristics of
those items.
(a) True
(b) False
26. The auditors must use their professional judgment and all available knowledge to
assess inherent risk. If no such information or knowledge is available then the
inherent risk is high.
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(a) True
(b) False
27. Control Risk is risk that a material misstatement would be prevented, detected or
corrected by the accounting and internal control systems.
(a) True
(b) False
28. Which of the following component of audit risk the auditor can control over:
29. As inherent risk and control risks are integral to the client, the auditor cannot
change the level of these risks.
(a) False
(b) True
30. If control and inherent risk are assessed as sufficiently low, substantive
procedures can be abandoned completely.
(a) False
(b) True
31. The auditor shall identify and assess the risks of material misstatement at:
32. Some risks may be significant risks, which require special audit consideration.
(a) False
(b) True
33. Which of the following factor indicates that a risk might be a significant risk:
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34. Routine, non-complex transactions are less likely to give rise to significant risk
than unusual transactions or matters of directors’ judgment because unusual
transactions are likely to have more:
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