In determining the level of materiality for an audit, what should not be considered?
(A) Prior year’s errors
(B) The auditor’s remuneration
(C) Adjusted interim financial statements
(D) Prior year’s financial statements
When issuing unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the___________?
(A) Amount of known misstatement is documented in working papers
(B) Estimates of the total likely misstatement is less than materiality level
(C) Estimate of the total likely misstatement is more than materially level
(D) Estimates of the total likely misstatement cannot be made
______the audit risks_______the materiality and_________the audit effort.
(A) Lower, Higher, Lower
(B) Lower, Lower, Higher
(C) Higher, Lower, Lower
(D) Lower, Higher, Higher
Which of the following statements is not correct about materiality?
(A) Materiality is a relative concept
(B) Materiality judgments involve both quantitative and qualitative judgments
(C) Auditor’s consideration of materiality is influenced by the auditor’s perception of the needs of an informed decision maker who will rely on the financial statements
(D) At the planning state, the auditor considers materiality at the financial statement level only
Test Checking refers to___________?
(A) Testing of accounts and records
(B) Checking of selected number of transactions
(C) Examination of adjusting and closing entries
(D) Checking of all transactions recorded
Window dressing implies_______________?
(A) Curtailment of expenses
(B) Checking of Wastages
(C) Under valuation of assets
(D) Over Valuation of assets
Errors of Omission are_____________?
(A) Technical errors
(B) Errors of principle
(C) Compensating errors
(D) None of the above
Internal check is carried on by___________?
(A) Staff specially appointed for the purpose
(B) Internal auditor
(C) Supervisor of the staff
(D) Members of the staff
Which of the following statements is not true about continuous audit?
(A) It is conducted at regular interval
(B) It may be carried out on daily basis
(C) It is needed when the organization has a good internal control system
(D) It is expensive
Institute of Chartered Accountants of Pakistan was established in____________?
(A) 1949
(B) 1956
(C) 1961
(D) 1972