Kahoot Quiz on Concepts of Auditing

Question 1

What is an essential factor in evaluating the sufficiency of evidence?

Answer 1

Sufficiently persuasive to enable the auditor to form an opinion

Question 2

Which is the least persuasive type of audit evidence?

Answer 2

Copies of sales invoivces inspected by the auditor

Question 3

What is tolerable misstatement?

Answer 3

The maximum amount of materiality allocated to a specific account

Question 4

The auditor decides what the level of materiality will be, considering the entirety of the financial statements.

Answer 4

True.
Auditors will first set the materiality level for the FS as a whole there after only allocating the tolerable misstatement to each specific account.

Question 5

Audit evidence needs to be reliable and relevance.

Answer 5

True

Question 6

What does the Audit Risk Model make up of?

Answer 6

1. Control Risk
2. Detection Risk
3. Inherent Risk

Question 7

The objective of substantive tests is to obtain evidence about the effectiveness of audit clients’ controls.

Answer 7

False

It should be tests of controls the one obtaining evidence about the effectiveness of audit clients’ controls.

Question 8

Which is not an example of substantive tests?

Answer 8

Existence, valuation and ownership.

Question 9

Higher risk of a fraud exists if?

Answer 9

There is inadequate segregation of duties employee in a position to perpetrate theft.

Question 10

What are the key phases of audit?

Answer 10

Planning, evidence gathering, completion