Audit Sample Questions Essay

1149 Words Feb 25th, 2014 5 Pages
c 1.) Which item is not included in the General Principles governing the audit of financial statements? a.The auditor should comply with the relevant ethical requirement. b.The auditor should exercise professional judgment. c.The auditor should conduct an audit in accordance with Philippine Accounting Standards. d.The auditor should plan and perform the audit with an attitude of professional skepticism.

d 2.) Which of the following choices is not the reason for conducting an audit? a. Expertise b. Financial Consequences c. Remoteness d. Justification a 3.) The audit function operates within a theoretical framework. Choose the incorrect statement regarding the Theoretical Framework of Auditing. a. There should be
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d 7.) The responsibility of detecting fraud, error and noncompliance with laws and regulations rests with a. Client's management b. Individuals charged with governance c. Auditor d. All of the above.

a 8.) Choose the statement that you believe is false. a. An audit of FS generally ends with the financial statements prepared by the entity. b. There is an unavoidable risk that material mistatements in the financial statements resulting from fraud and error may not be detected. c. It is the management's responsibility to ensure that the entity's operations are conducted in accordance with laws and regulations. d. Professional judgment is the hallmark of auditing.

a 9.) The auditor needs to gather sufficient appropriate audit evidence. Why do you think so? a. So that the auditor can form an opinion on the financial statements. b. So that the auditor can point out the errors on the financial statements. c. So that the auditor can measure the accuracy of financial statements. d. So that the auditor can evaluate the internal and accounting control systems.

b 10.) The following assertions are under the presentation and disclosure, choose the one that is not included. a. Completeness b. Accuracy and existence c. Occurence and rights and obligations d. Classification and understandability

d 11.) An audit process is a step by step of different activities involved in an audit. Which of the following choices is correctly

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