Q. When counting cash on hand the auditor should ___
✅ Correct Answer: (C)
Ensure postage and revenue stamps are not counted in physical count
Auditing MCQs and Notes
Q. The balance of cash in often between one to five percent of total assets. Tick the most appropriate statement with regard to verification of cash in context of this
✅ Correct Answer: (A)
Cash in always material as materiality is qualitative concept
Q. Which of the following statements is not true with regard to teeming and lading ?
✅ Correct Answer: (C)
If same individual maintains cash receipts and cash payments teeming and lading is likely to exist
Q. Analytical procedures are least likely to be use in the audit of –
✅ Correct Answer: (A)
Cash balance
Q. Proper segregation of duties reduces the opportunities in which a person would both
✅ Correct Answer: (C)
Perpetuate errors and frauds and conceals them
Q. When an independent auditor relies on the work of an internal auditor, he or she should
✅ Correct Answer: (D)
all of the above
Q. In comparison to the independent auditor, an internal auditor is more likely to be concerned with
✅ Correct Answer: (B)
Internal control system
Q. The independence of an internal auditor will most likely be assured if he reports to the
✅ Correct Answer: (C)
Managing Director
Q. The performance of tests of control is documented in
✅ Correct Answer: (C)
Working papers
Q. A flow chart, made by the auditor, of an entity’s internal control system is a graphic representation that depicts the auditor’s.
✅ Correct Answer: (A)
Understanding of the system