Question: An auditor should not accept a loan on favourable commercial terms from an audit client because of the threat to his or her independence. The threat would be a___________?

• 1. Self-interest threat
• 2. Self-review threat
• 3. Advocacy threat
• 4. Familiarity threat

Question: Which one of the following may auditors NOT perform for their client?

• 1. Taking management decisions
• 2. Preparation of accounting records
• 3. Preparing tax computations
• 4. Advising on weaknesses in the internal control systems

Question: You have been proposed as auditor of a company. What is the first step that you should take?

• 1. Obtain the client’s permission to communicate with the existing auditor
• 2. Obtain the existing auditor’s working papers
• 3. Obtain a copy of the company’s most recent board minutes
• 4. Obtain a copy of the existing auditor’s letter of engagement

Question: Pick the odd one:

• 1. Checking the vouchers
• 2. Preparation of vouchers
• 3. Evaluation of internal control
• 4. None of the above

Question: Which of the following is not type of engagement standard?

• 1. Standards on Auditing
• 2. Standard on Quality Control
• 3. Standards on Review Engagement
• 4. Standards on Assurance Engagement

Question: How many Standards on Auditing have been issued?

• 1. 32
• 2. 34
• 3. 36
• 4. 38

Question: Auditing engagement can be performed w.r.t.

• 1. Profit making entity
• 2. Non-profit making entity
• 3. Corporate entity only
• 4. Any entity

Question: Scope of financial audit is__________?

• 1. Financial information
• 2. Non-financial information
• 3. Both (a) and (b)
• 4. None of these

Question: IFRS 9 explains about?

• 1. Inventory
• 2. Accounts Payable
• 3. Accounts Receivable
• 4. Expenses

Question: Audit fess is a part of__________.

• 1. works on cost.
• 2. selling overhead.
• 3. distribution overhead.
• 4. administration overhead