Which of the following is NOT a component of an audit engagement?

Eliminating business risk and information riskof client.

Which of the following is CORRECT regarding to the main objective of financial statement audit?

Express the opinion whether audited financial statements are true and fair.

Which of the following work is carried out during the audit performing stage?

Checking the physical existence of inventory.

What is the reason to explain why investors need audit opinion from external auditor?

There is a potential interest conflict betweeninvestors and management.

What is the key objective of an audit engagement?

To add creditability to the report.

Which of the following is the objective of audit prior 1840?

Verifying of business transaction.

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Chapter 1: Introduction to Auditing

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Questions 10

Answers

1
Which of the following is NOT a component of an audit engagement?
Expressing independent opinions.
Obtaining and evaluating audit evidence.
Communicating ending result in form of an auditreport.
Eliminating business risk and information riskof client.
2
In the history of auditing, the system-based approach auditing has been applied since:
1960
1840
1920
1990
3
In which stage of financial statement audit does auditor obtaining for the understanding of client’s environment?
Audit completion.
Audit planning.
Audit analysing.
Audit performance.
4
Which of the following is CORRECT regarding to the main objective of financial statement audit?
Express the opinion whether audited financial statements are true and fair.
Evaluate for the effectiveness and efficiency offinancial statement.
Help business in detecting for weaknesses in management performance.
Detect all fraud and error on financialstatement to ensure their accuracy.
5
Which of the following work is carried out during the audit performing stage?
Establishing an engagement letter.
Checking the physical existence of inventory.
Publishing the audit report.
Gathering understanding of business environment.
6
What is the reason to explain why investors need audit opinion from external auditor?
Every error in accounting record would beadjusted by the auditor.
There is a potential interest conflict betweeninvestors and management.
There is a need to assess for the effectivenessof internal auditor work.
Auditor would detect all errors in managementoperations.
7
Which of the following is NOT a principle in the audit code of ethics?
Materiality
Objectivity
Independence
Integrity
8
What is the key objective of an audit engagement?
To generate understanding of client environment.
To add creditability to the report.
To provide a checking service to client.
To check for business ineffectiveness.
9
Which of the following is the objective of audit prior 1840?
Detecting of fraud and errors.
Verifying of business transaction.
Checking for business risk.
Providing credibility to the financialstatements.
10
Operational audit is also known as:
Internal audit.
Efficiency audit.
Value for money audit.
Management audit.

Chapter 1: Introduction to Auditing Flashcards | StudBud

Chapter 1: Introduction to Auditing

10 termsStudBud Administration164 plays

Chapter 1: Introduction to Auditing

Flashcards10 cardsFPractice quizPHost liveL

Questions 10

Answers

1
Which of the following is NOT a component of an audit engagement?
Expressing independent opinions.
Obtaining and evaluating audit evidence.
Communicating ending result in form of an auditreport.
Eliminating business risk and information riskof client.
2
In the history of auditing, the system-based approach auditing has been applied since:
1960
1840
1920
1990
3
In which stage of financial statement audit does auditor obtaining for the understanding of client’s environment?
Audit completion.
Audit planning.
Audit analysing.
Audit performance.
4
Which of the following is CORRECT regarding to the main objective of financial statement audit?
Express the opinion whether audited financial statements are true and fair.
Evaluate for the effectiveness and efficiency offinancial statement.
Help business in detecting for weaknesses in management performance.
Detect all fraud and error on financialstatement to ensure their accuracy.
5
Which of the following work is carried out during the audit performing stage?
Establishing an engagement letter.
Checking the physical existence of inventory.
Publishing the audit report.
Gathering understanding of business environment.
6
What is the reason to explain why investors need audit opinion from external auditor?
Every error in accounting record would beadjusted by the auditor.
There is a potential interest conflict betweeninvestors and management.
There is a need to assess for the effectivenessof internal auditor work.
Auditor would detect all errors in managementoperations.
7
Which of the following is NOT a principle in the audit code of ethics?
Materiality
Objectivity
Independence
Integrity
8
What is the key objective of an audit engagement?
To generate understanding of client environment.
To add creditability to the report.
To provide a checking service to client.
To check for business ineffectiveness.
9
Which of the following is the objective of audit prior 1840?
Detecting of fraud and errors.
Verifying of business transaction.
Checking for business risk.
Providing credibility to the financialstatements.
10
Operational audit is also known as:
Internal audit.
Efficiency audit.
Value for money audit.
Management audit.