Auditing

A. The auditor

B. The client

C. The audit assistants

D. The auditor and his audit assistants

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

A. Examining the physical existence and valuation of assets.

B. Examining the journal and ledger

C. Examination of vouchers related to assets.

D. None of the above.

A. Substantive testing

B. Planning stage

C. Overall review stage

D. All of the above

A. It helps to study relationship among balance sheet accounts

B. It helps to discover material misstatements in the financial statements

C. It helps to identify possible oversights

D. It helps to accumulate evidence supporting the validity of a specific account balance

A. Helps to determine the nature, timing and extent of other audit procedures

B. Directs attention to potential risk areas

C. Indicates important aspects of business

D. All of the above

A. Prior year’s errors

B. The auditor’s remuneration

C. Adjusted interim financial statements

D. Prior year’s financial statements

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

A. Lower, Higher, Lower

B. Lower, Lower, Higher

C. Higher, Lower, Lower

D. Lower, Higher, Higher

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