Selected MCQs To Students

Topics: Auditing, Balance sheet, Audit Pages: 4 (1045 words) Published: January 10, 2015

MCQ Assessment (Individual Basis)

Introduction to Auditing Assurance
The Legal and Ethical Framework Governing an External Audit in Sri Lanka Internal Audit and External Audit
Financial Statement Assertions, Audit Evidence and Documentation Audit Planning 
Audit Program

Q1 An audit establishes the conformity of assertions with specified criteria. In an audit of a financial report, the criteria by which financial report assertions are judged is:

A: Sri Lanka Auditing Standards.
B: The Ethical Rules of The CA Sri Lanka.
C: Applicable accounting standards.
D: Listing Rules of the Sri Lanka Securities and Investments Commission.

Q2 Which of the following statements is not true concerning assurance services?

A: The growth in assurance services has been driven in part by users' demands for more relevant information. B: Assurance services focus on improving the quality of information, or its context, for decision makers. C: Unlike audit engagements, an engagement to perform assurance services does not require the auditor to consider information reliability. D: Auditing services can be viewed as a subset of assurance services.

Q3 Independent auditors perform audits on the financial reports of public companies. This type of auditing can best be described as:

A: An activity whose purpose is to search for irregularities. B: A discipline that attests to financial information presented by management.
C: A professional activity that measures and communicates financial and business data. D: A regulatory function that prevents the issuance of improper financial information.

Q4 An audit of the financial report of Campbell Ltd is being conducted by an external auditor. The external auditor is expected to:

A: Express an opinion as to the fairness of Campbell’s financial report. B: Express an opinion as to the attractiveness of Campbell for investment purposes. C: Certify the correctness of Campbell’s financial report. D: Make...
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