model exam of auditing principle and practice i

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rift valley university model exam of auditing principle and practice i i/ choose the best answer 1. __________ is a systematic examination of the books and records or a business. a. auditing. b. vouching. c. verification. d. checking. 2. which of the following is not a kind of audit? a. statutory and private audit. b. government and continuous audit. c. continuous, final, interim, cash, cost and management audit. d. none of these. 3. an audit which is compulsory by the law __________. a. government audit. b. internal audit. c. cost audit. d. statutory audit. 4. audit done by the employees of the business undertaking is called _______. a. final audit. b. management audit. c. government audit. d. government audit. 5. management audit otherwise called as _______. a. final audit. b. efficiency audit. c. cost audit. d. cash audit. 6. a number of checks and controls exercised in a business to …

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partially such errors are called as _________. a. error of commission. b. error of omission. c. compensating error. d. error of principle. 13. verification of the value of assets, liabilities, the balance of reserves, provision and the amount of profit earned or loss suffered a firm is called _________. a. continuous audit. b. balance sheet audit. c. interim audit. d. partial audit. 14. a sale of rs. 50000 to mr. a was entered as a sale to mr. b. this is an example of: a. error of omission. b. error of commission. c. compensating error. d. error of principle. 15. recording a transaction twice in the books of original entry is an error of __________. a. principle. b. commission. c. duplication. d. omission. 16. errors and frauds already committed can be discovered under the system of ________. a. internal audit. b. internal check. c. internal control. d. all of the …

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and payments have been properly recorded. c. to check the internal control system in business. d. to check the bank balance. 22. a good audit report must at least meet one of the following qualifications __________. a. it should offer constructive and timely suggestions to the management. b. it should not point out mistakes. c. it should not be based on factual information. d. it should not be based on balance sheet. 23. verification is __________. a. the art of recording the business transaction. b. an examination of the books of accounts. c. the act of establishing the accuracy of entries in the books of accounts. d. none of the above. 24. the main objects of investigation is _________. a. to discover errors and frauds. b. to prevent errors and frauds. c. to verify statements. d. all the above. 25. internal controls and internal check are ____________. a. one and …

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ales. c. the restatement of sales. d. omission of a sales transaction from being recorded. 33. balance sheet audit included verification of ________. a. assets. b. liabilities. c. income and expenditure accounts where appropriate. d. all of the above. 34. which of the following statements is not true about the continuous audit? a. it is conducted at regular interval. b. it may be carried out on daily basis. c. it is needed when the organization has a good internal control system. d. it is expensive. 35. in determining the level of materiality for an audit what should not be considered? a. prior year’s errors. b. the auditor remuneration. c. adjusted interim financial statement. d. prior year financial statements. 36. analytical procedures issued in the planning stage of an audit, generally ___________. a. helps to determine the nature, timing and extent of other audit procedures. b. directs attention to potential risk …

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rift valley university model exam of auditing principle and practice i i/ choose the best answer 1. __________ is a systematic examination of the books and records or a business. a. auditing. b. vouching. c. verification. d. checking. 2. which of the following is not a kind of audit? a. statutory and private audit. b. government and continuous audit. c. continuous, final, interim, cash, cost and management audit. d. none of these. 3. an audit which is compulsory by the law __________. a. government audit. b. internal audit. c. cost audit. d. statutory audit. 4. audit done by the employees of the business undertaking is called _______. a. final audit. b. management audit. c. government audit. d. government audit. 5. …

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