AUD MCQ 4.6

Question 1

Reliablity of audit evidence

Answer 1

An effective internal control structure provide reliable audit evidance

Question 2

Dividend income from investments is tested by referring to the

Answer 2

Dividend record books produced by investment advisory services such as Moody’s dividend record.

Question 3

Inventory valuation

Answer 3

Entity’s computation of standard overhead rates.
Obtaining confirmation of inventories pledged under loan agreements provides assurance about the appropriate presentation, description, and disclosure of matters in financial statements

Question 4

Tracing potentially unrecorded items To the financial statements and tracing from supporting evidence to the accounting records

Answer 4

is completeness not existence

Question 5

In testing the existing assertion for an asset

Answer 5

the auditor works ordinarily works from the accounting records to the supporting evidence

Question 6

Cut off tests are designed to determine

Answer 6

the transaction is recorded in proper period

Question 7

Completeness occur

Answer 7

When an auditor selects items for test counts and traces the test counts to the clients inventory listing….

Question 8

The assertion of existence

Answer 8

would be supported by selecting from a sample of inventory items included in the physical listing and tracing to the floor that the invtory was actually on hand