SSC

A. Understanding of the system

B. Understanding of fraud risk factors

C. Documentation of assessment of control risk

D. Both (a) and (c)

A. misappropriation of cash

B. misappropriation of goods

C. fraud

D. misfeasance

A. Affects the audit risk

B. Affects the level of detection risk that auditor may accept

C. Helps him to fix materiality level for each financial assertion

D. Is directly related to inherent risk

A. Vouching

B. Verification

C. Inspection

D. Auditing

A. Accounting, auditing

B. Auditing, accounting

C. Vouching, auditing

D. Accounting,vouching

A. Sales book and sales return book

B. Purchase book and sales return book

C. Cash book and purchase book

D. Sales book and purchase return book

A. Purchase returns

B. Sales returns

C. Goods with consignor

D. Purchase discounts

A. Auditor should attend physical stock taking only if inventory is material

B. Auditor may not attend physical verification of stock by management, if he does not find it appropriate to rely on it

C. If inventory is material, even when the auditor is not placing reliance on the physical verification by the management, he should attend it

D. The primary objective of an auditor’s observation of an entity’s observation of an entity’s stock take is to obtain direct knowledge that the stock and has been property counted

A. Determine whether assets are safeguarded

B. Suggest improvements in internal control

C. Plan audit procedures

D. Express and opinion

A. Management override

B. Collusion among employees

C. Inefficiency of internal auditor

D. Abuse of authority