Answers for you on the basis of International Standards on Auditing

1. The definition of auditing states that the auditor

D. none of the above

2. Financial statements are the representations of

D. management

3. Proper supervision is

D. both A & C

4. The audit report should be dated
D. none of the above

5. If an auditor is not independent, he should issue a
A. disclaimer


6. The concept of materiality is recognized in the auditor's report

D. materiality is not recognized in the auditor's report

7. The auditor considers materiality from

D. reasonable user perspective

8. The risk that the auditor will not detect a material misstatement is

D. none of the above

9. Evidence is considered competent when it
A. is relevant to the audit objective being tested


10. Audit documentation is the property of

B. the auditor


11. The objective of the audit plan is

D. Both A & B

12. Substantive tests consist of
A. analytical procedures


13. A more detailed understanding of internal control is required when using a
B. reliance strategy


14. The concept of _________ recognizes that the cost of an entity's internal control system should not exceed the benefits that are expected to be derived

D. control risk

15. Which is not true concerning information technology?
A. audit objectives change when using information technology


16. Personal computers may be used for

D. all of the above

17. The correct sequence of steps in planning an attribute sampling application is
A. randomly select sample items, perform audit procedures, perform error analysis

18. Which of the following represents a deviation

B. inability to examine a sample item

19. The amount of the preliminary judgment about materiality that is allocated to a financial statement account is referred to as

D. tolerable misstatement

20. Sampling may be used for substantive testing to

C. apply judgment