1. Choose the best answer
1. In general, the term “auditors” include
a. CPAs
b. Government auditors
c. Internal auditors
d. All of the above
2. Auditing is
a. The accumulation and evaluation of evidence about information to determine
and report on the degree of correspondence between the information and
established criteria.
b. An examined and verified account.
c. One that audits accounts.
d. None of the above
3. Which order shows the audit process?
a. Accumulating and evaluating evidence -> Reporting -> Information and
Established criteria -> Competent, independent person
b. Information and Established criteria -> Accumulating and evaluating
evidence -> Competent, independent person -> Reporting
c. Competent, independent person -> Accumulating and evaluating evidence ->
Information and Established criteria -> Reporting
d. Reporting -> Competent, independent person -> Information and Established
criteria -> Accumulating and evaluating evidence
4. Auditors perform
a. Audits of quantifiable information
b. Audits of subjective information
c. Audits of quantifiable and subjective information
d. None of the above
5. Which one is considered quantifiable information?
a. A company’s financial statement
b. Effectiveness of computer operations
c. Efficiency of manufacturing options
d. All of the above
6. Evidence
VOCABULARY EXERCISES197
a. Is the information used by auditors.
b. Determines whether the information being audited is stated in accordance
with the established criteria.
c. Has many forms.
d. All of the above
7. To satisfy the purpose of the audit, it is essential to obtain
a. An adequate quality of evidence
b. An adequate volume of evidence
c. A & B
d. None of the above
8. An auditor must
a. Be qualified to understand the criteria used.
b. Be competent to know the types and amount of evidence.
c. Have an independent mental attitude.
d. All of the above
9. Why are auditing and accounting confused?
a. Auditing is usually related to accounting information.
b. Auditors have considerable expertise in accounting matters.
c. Many individuals performing audits is called CPA.
d. All of the above
10. What one is a type of audits?
a. Financial statement audits
b. Operational audits
c. Compliance audits
d. All of the above
11. An audit of financial statement
a. Is a review of any part of an organization’s operating procedures and methods
for the purpose of evaluating efficiency and effectiveness.
b. Determines whether the auditee is following specific procedures, rules or
regulations set down by some higher authority.
c. Is conducted to determine whether the overall financial statements are stated
in accordance with specified criteria.
d. None of the above198
12. An operational audit
a. Is a review of any part of an organization’s operating procedures and methods
for the purpose of evaluating efficiency and effectiveness.
b. Determines whether the auditee is following specific procedures, rules or
regulations set down by some higher authority.
c. Is conducted to determine whether the overall financial statements are stated
in accordance with specified criteria.
d. None of the above
13. A compliance audit
a. Is a review of any part of an organization’s operating procedures and methods
for the purpose of evaluating efficiency and effectiveness.
b. Determines whether the auditee is following specific procedures, rules or
regulations set down by some higher authority.
c. Is conducted to determine whether the overall financial statements are stated
in accordance with specified criteria.
d. None of the above
Answers
Answer:
ok................friend
Explanation:
accordance
with the established criteria.
c. Has many forms.
d. All of the above
7. To satisfy the purpose of the audit, it is essential to obtain
a. An adequate quality of evidence
b. An adequate volume of evidence
c. A & B
d. None of the above
8. An auditor must
a. Be qualified to understand the criteria used.
b. Be competent to know the types and amount of evidence.
c. Have an independent mental attitude.
d. All of the above
9. Why are auditing and accounting confused?
a. Auditing is usually related to accounting information.
b. Auditors have considerable expertise in accounting matters.
c. Many individuals performing audits is called CPA.
d. All of the above
10. What one is a type of audits?
a. Financial statement audits
b. Operational audits
c. Compliance audits
d. All of the above
11. An audit of financial statement
a. Is a review of any part of an organization’s operating procedures and methods
for the purpose of evaluating efficiency and effectiveness.
b. Determines whether the auditee is following specific procedures, rules or
regulations set down by some higher authority.
c. Is conducted to determine whether the overall financial statements are stated
in accordance with specified criteria.
d. None of the above198
12. An operational audit
a. Is a review of any part of an organization’s operating procedures and methods
for the purpose of evaluating efficiency and effectiveness.
b. Determines whether the auditee is following specific procedures, rules or
regulations set down by some higher authority.
c. Is conducted to determine whether the overall financial statements are stated
in accordance with specified criteria.
d. None of the above
13. A compliance audit
a. Is a review of any part of an organization’s operating procedures and methods
for the purpose of evaluating efficiency and effectiveness.
b. Determines whether the auditee is following specific procedures, rules or
regulations set down by some higher authority.
c. Is conducted to determine whether the overall financial statements are stated
in accordance with specified criteria.
d. None please mark as brilliant