MCQ AUD 3.6

Question 1

Test of controls

Answer 1

are performed after planning audit is complete

Question 2

analytical procedures

Answer 2

should be used in the planning stage. These are not effective in detecting material weakness of clients internal control

Question 3

fieldwork stage of audit

Answer 3

confirmation of bank balances
scanning accounts receivable
recalculating inventory exceptions
contingencies such as lawsuits

Question 4

test of details

Answer 4

scanning payroll files for terminated employees
confirmation of accounts receivable
recalculating interest expense
cutoff test 
cash receipts and disbursement

Question 5

palnned level of control risk

Answer 5

test of control will help that it also help internal control exists and operate effficiently