Auditing

Tutorial 1-Part 1-Introduction of Auditing & Assurance

Question and Answers

Review Questions

MCQ

1. Auditing plays a vital role in business, government and our economy. Which of the following bodies does not require an annual audit?

a. all public and large proprietary companies.

b. small proprietary enterprise

c. 'not-for-profit' organisations, including educational institutions.

d. commonwealth government departments and statutory authorities

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2. What type of audit activity involves the auditor obtaining and evaluating evidence to determine whether certain financial or operating activities of an entity conform to specified conditions, rules or regulations?

a. compliance audit.

b. financial report audit.

c. performance audit.

d. comprehensive audit.

3. What type of audit activity involves obtaining and evaluating evidence about the efficiency, economy and effectiveness of an entity’s operating activities in relation to specified objectives?

a. compliance audit.

b. financial report audit.

c. performance audit.

d. all of the above.

4. Which of the following is true regarding an auditor’s responsibility for detecting fraud?

a. auditors are required to detect all fraud during an audit.

b. auditors must be reasonably cautious and careful and investigate anything suspicious.

c. auditors are not required to detect possible fraud.

d. auditors are not able to investigate fraud.

Short Essay questions

1) Explain what you understand about auditing

Answers

Auditing is a systematic process of objectively obtaining and evaluating evidence regarding assertions on economic actions and events, to ascertain the degree of correspondence between those assertions, and established criteria and communicating the results to interested users.

2) List various types of auditors

• Company auditor/Independent...