Q1. The audit of Joint Stock Company made compulsory by —-
Answer: Indian Companies Act, 1913
Q2. A person to do the auditing must be qualified as per the standards of the —-
Answer: Institute of Chartered Accountants of India
Q3. Audit may be defined as an official inspection of an individual-s or organization-s accounts, typically by —-
Answer: An independent body
Q4. Auditing is the systematic and scientific examination of the —- and —-
Answer: Books of a accounts; records of a business
Q5. There are three types of audits: (a) —- ; (b) —- ; and (c) —-
Answer: Correspondence audits; office audits; field audits
Q6. Audit is concerned with detailed examination of the complete accounting records but it does not involve the —-
Answer: Preparation of accounts
Q7. Auditing without the —- is not possible. When the accountant finishes his work, the auditor starts his work.
Answer: Prior existence of accounts
Q8. To determine and judge the reliability of the —- and the supporting accounting records of a particular financial period is the main purpose of the audit.
Answer: Financial statement
Q9. Detection of fraud or errors is a —- objective of the audit.
Answer: Secondary
Q10. Overvaluation of closing stock or incorrect allocation of expenditure or receipt betweencapital and revenue are some of the examples of —-
Answer: Errors of principle
Q11. An audit of an organization performed by a body that is independent of the organizationbeing audited is called —-
Answer: Third party audit
Q12. The —- object of auditing is to detect and prevent errors and frauds in the books of accounts.
Answer: Subsidiary or Secondary
Q13. —- audit is performed to know the corporate social responsibility.
Answer: Social
Q14. —- is an audit to ensure you-re in compliance with relevant specifications, contract, or regulation.
Answer: Compliance audit
Q15. Qualifications of the statutory auditor are prescribed in the —-
Answer: Companies Act, 1956
Q16. The Institute of Chartered Accountants of India was set up in 1962 to regulate the profession of chartered accountancy in India.
(a) True
(b) False
Answer: (b) False
Q17. A review provides a negative assurance report giving only a moderate level of assurance on the reliability of the financial information.
(a) True
(b) False
Answer: (a) True
Q18. The concept of audit has undergone a change with the thrust on providing an assurance to the reader of financial statements by expressing an opinion.
(a) True
(b) False
Answer: (a) True
Q19. In audit, the Chartered Accountant-s objective is to provide a high (but not absolute) level of assurance on the reliability of financial statements.
(a) True
(b) False
Answer: (a) True
Q20. The aim of Auditing standards is to ensure that the members comply with the technical standards for maintaining the quality of the attestation works they perform.
(a) True
(b) False
Answer: (a) True
Q21. After taking into the comments received, the draft of the proposed auditing standard is finalised by the Board and submitted to the —- of the Institute.
Answer: Council
Q22. While formulating the —- the Board also takes into consideration the applicable laws, customs, usages and business environment in the country.
Answer: Auditing Standards
Q23. The members of the Institute shall follow high standards of —- and —-
Answer: Fairness, integrity & ethical conduct
Q24. The Institute of —- of India is a member of the International Federation of Accountants.
Answer: Chartered Accountants
Q25. The ICAI has issued thirty five auditing standards corresponding to the —- Standards issued by the IAASB of the IFAC and three auditing standards are in the pipeline
Answer: Engagement
Q26. —- represent a set of internationally accepted accounting principles used by companies to prepare financial statements.
Answer: IFRS
Q27. In the coming years, critical —- will need to be made regarding the use of global accounting standards in the United States.
Answer: Decisions
Q28. Accounting standards around the world have evolved over centuries of business and —- development.
Answer: Capital market
Q29. The growing dynamic of —- presented a challenge to these “legacy systems.”
Answer: Globalization
Q30. Since —-, IFRS has become accepted or been adopted for public reporting purposes in over 100 countries, including the 27 member-states of the European Union.
Answer: 2001
Q31. Theoretically, the term “GAAP” does not cover the entire accounting industry, rather than only the US.
(a) True
(b) False
Answer: (b) False
Q32. The APB operated from 1970 through 1973 and issued 31 Accounting Principles Board Opinions (APBOs), various Interpretations, and four Statements.
(a) True
(b) False
Answer: (b) False
Q33. Again, it has to be remembered that GAAP are not a rigid set of rules.
(a) True
(b) False
Answer: (a) True
Q34. The evolvement of GAAP is based on four fundamental qualities the financial statements must possess.
(a) True
(b) False
Answer: (a) True
Q35. The US GAAP features four basic assumptions to meet its objectives.
(a) True
(b) False
Answer: (a) True
Q36. —- stipulate stringent accounting treatment as well as disclosure norms, whereas their Indian GAAP in many cases have relaxed requirements.
Answer: US GAAP
Q37. Under —- Financial statements are prepared in accordance with the principle of conservatism which basically means “Anticipate no profits and provide for all possible losses”.
Answer: Indian GAAP
Q38. Under US GAAP —- is not considered, if it leads to deliberate and consistent understatements.
Answer: Conservatism
Q39. Under Indian GAAP, financial statements are prepared in accordance with the presentation requirements of Schedule VI to the Companies Act, —-
Answer: 1956
Q40. Under Indian GAAP (AS 13), —- are classified as current and long term.
Answer: Investments
Q41. Because of federal character of —- there are multiples accounting and other bodies making accounting statements and pronouncements.
Answer: US Govt.
Q42. The —- follows a consultative process in the formulation of accounting standards which ensures participation of all interest groups through Accounting Standards Board (ASB).
Answer: ICAI
Q43. The ICAI has issued —- Accounting Standards till date.
Answer: 29
Q44. Financial Accounting Standard Board (FASB) is the main body which formulates the —-
Answer: US GAAP
Q45. US GAAP refers to accounting principles, which are generally accepted accounting practices in USA and were set in the year —-
Answer: 1973
Q46. Effective internal control is not a built-in part of the management process.
(a) True
(b) False
Answer: (b) False
Q47. Internal control is the process designed to ensure reliable financial reporting, effective and efficient operations, and compliance with applicable laws and regulations.
(a) True
(b) False
Answer: (a) True
Q48. Safeguarding assets against theft and unauthorized use, acquisition, or disposal is not the part of internal control.
(a) True
(b) False
Answer: (b) False
Q49. In order to identify and establish effective controls, management must continually assess the risk, monitor control implementation, and modify controls as needed.
(a) True
(b) False
Answer: (a) True
Q50. Top managers of publicly held companies must sign a statement of responsibility for internal controls and include this statement in their annual report to stockholders.
(a) True
(b) False
Answer: (a) True
Q51. Accounting entries should not be allowed without a —- document.
Answer: Supporting
Q52. Persons having the custody or control of assets and those responsible for the —- in respect of them should not be same.
Answer: Accounting
Q53. The internal audit activity is led by the —-
Answer: Chief Audit Executive (CAE)
Q54. The purpose of internal audit is to evaluate the —-
Answer: Internal check system
Q55. Internal checking is an accounting procedure or physical control to safeguard —- due to fraud or other irregularities.
Answer: Assets against loss
Q56. An effective internal —- can provide assurance to other stakeholders such as regulators, employees, providers of finance, and shareholders.
Answer: Audit Activity
Q57. The basic objectives of evaluating internal control system arise from the fact that internal control system has certain —- to fulfil.
Answer: Purposes
Q58. The objective of evaluating internal control system is to reduce the auditor-s work and Notes save his time and also —- of the organization.
Answer: Resources
Q59. The auditor should understand the internal control system with the purpose to have an idea of the flow of —- and the various control procedures.
Answer: Transactions
Q60. The objective of compliance tests is to provide a fair —- to the auditor that the internal control procedures are being effective as prescribed
Answer: Confidence
Q61. The selection of a particular —- is a matter of the auditor-s judgment.
Answer: Technique
Q62. Two most common techniques of internal control evaluation are the —- and the internal control questionnaires.
Answer: Flow Charts
Q63. A properly drawn up flow chart can provide a neat visual picture of the whole activities of the section or department involving flow of —- and activities.
Answer: Documents
Q64. For actual drawing of the flow chart, the auditor has to formulate his —- to reflect the flow and the connected details.
Answer: Symbols
Q65. A questionnaire usually consists of several separate —- devoted to areas such as purchases, sales, debtors, creditors, wages etc.
Answer: Sections
Q66. The questionnaire is intended to be filled by the company —- who are in charge of various areas.
Answer: Executives
Q67. Drafting a scheme of internal control is similar to drafting an internal control —-
Answer: Questionnaire
Q68. There are various advantages of —- employees on different job periodically.
Answer: Rotating
Q69. Methodology for internal evaluation include: —- ; —- and —-
Answer: Appraisal by workflow; appraisal by duties; appraisal by questionnaire
Q70. Answers of internal control questionnaire are compiled by the auditor on the basis of his —- with the auditee.
Answer: Observations and personal interaction
Q71. The corrective action taken for rectification by the management and its periodic assessment through —- method enables the fulfilment of the principal objectives of internal control procedures.
Answer: the Systems Control Evaluation
Q72. Internal audit is an independent activity.
(a) True
(b) False
Answer: (a) True
Q73. Internal audit is basically an evaluation and reporting function of financial areas only.
(a) True
(b) False
Answer: (b) False
Q74. It is said that the internal audit functions as an eye of the management.
(a) True
(b) False
Answer: (a) True
Q75. Internal audit is not concerned with the correctness of accounts.
(a) True
(b) False
Answer: (b) False
Q76. Internal auditor should have the liberty to directly communicate with the —- auditor.
Answer: External
Q77. The internal auditor should exercise due —- care in fulfilling his responsibilities.
Answer: Professional
Q78. The main purpose of internal audit is to help the management to achieve its objectives.
(a) True
(b) False
Answer: (a) True
Q79. Operational audit includes assessment of budgetary standard setting.
(a) True
(b) False
Answer: (a) True
Q80. An —- audit will feature a report outlining the auditor-s findings.
Answer: External
Q81. Auditors start by gaining an understanding of the organisation-s —-
Answer: Activities
Q82. Auditors perform —- and obtain evidence to satisfy the requirements of the audit program.
Answer: Testing
Q83. The more important feature of an —- audit is the conclusion of the auditor.
Answer: External
Q84. External audits are typically conducted once a —- at the end of the company-s or government-s fiscal year.
Answer: Year
Q85. Internal audit and external audits are concerned with evaluation of —- control system.
Answer: Internal
Q86. The external auditor should assess the quality of work done by —- before relying upon the work of the latter.
Answer: Internal auditor
Q87. Internal check is an important process of internal control system.
(a) True
(b) False
Answer: (a) True
Q88. Prevention of errors and frauds is an important objective of internal check.
(a) True
(b) False
Answer: (a) True
Q89. —- occurs when the auditor determines that a type of receipt, deduction, exemption or other item does not need to be tested.
Answer: Zero Percent Examination
Q90. The —- is adopted by the auditor in cases where the sample does not follow a structured technique.
Answer: haphazard sampling technique
Q91. —- involves the auditor to split items included in a sample into their different sections.
Answer: stratified sampling technique
Q92. —- is also referred as ‘interval- sampling.
Answer: systematic sampling
Q93. The —- and the —- lie on the auditor who can reduce the sampling risk by picking up the reasonable or the correct small part of the population or the sample.
Answer: effectiveness; efficiency
Q94. Carefully selected sample will —- the rate of sampling risk.
Answer: decrease
Q95. Risk that procedures will not find errors is known as —- Notes
Answer: audit risk
Q96. —- is the probability that the sample results are not representative of the entire population.
Answer: Sampling risk
Q97. The sampling error can be found by deducting the value of a —- from the value of a statistic.
Answer: parameter
Q98. The —- and the —- can be considered as an example of random sampling error.
Answer: bottleneck effect; founder effect
Q99. It is more difficult to quantify —- errors than the —- errors.
Answer: non-sampling; sampling
Q100. Statistical sampling allows the user to measure the —- associated with the procedure.
Answer: Sampling risk
Q101. —- usually require more training for auditors and more time to apply.
Answer: Statistical applications
Q102. The decision to apply a statistical or non-statistical sampling application to a particular audit test is a matter of —-
Answer: Cost effectiveness
Q103. —- is used to reach a conclusion about a population in terms of an amount.
Answer: Variables sampling
Q104. —- is used when the auditor is only concerned with acceptance or rejection of a hypothesis.
Answer: Attribute sampling
Q105. —- are used by tax auditors to determine if controls which ensure the accuracy of records are in place and working correctly.
Answer: Compliance tests
Q106. Non-homogeneous populations require —- size samples.
Answer: Larger
Q107. The hardware and software are becoming obsolete in no time.
(a) True
(b) False
Answer: (a) True
Q108. Improper use of Decision Support System does not have serious repercussions.
(a) True
(b) False
Answer: (b) False
Q109. Auditors are increasingly using computers in planning and performing audit work.
(a) True
(b) False
Answer: (a) True
Q110. Audit software can not be used to examine quality of data.
(a) True
(b) False
Answer: (b) False
Q111. Present day organizations have a different security system for various risks to computer systems.
(a) True
(b) False
Answer: (a) True
Q112. The vulnerabilities in IT arise as creation and authentication of financial transactions on computer systems is done —-
Answer: Electronically
Q113. The principle of least privilege means that every individual is given access to the —- information strictly on the need to know basis.
Answer: Sensitive
Q114. The most common type of single user operating system is —-
Answer: DOS (Disk Operating System)
Q115. —- auditors use General Audit Software like ACL or IDEA or high-level languages like Structured Query Language (SQL) and industry specific or embedded audit software tools.
Answer: Worldwide
Q116. Quality of data reflects the quality of —- who developed the system.
Answer: Personnel
Q117. General Audit Software (Gas) has limited ability to verify —- Logic of an application system.
Answer: Processing
Q118. Expert systems provide a —- to add broad support and increased functionality to audit work paper tools.
Answer: Opportunity
Q119. Record selection criteria may be based on —- audits.
Answer: Prior
Q120. Audit effectiveness is a —- of both standards and performance.
Answer: Function
Q121. An internal auditing system must have the —- of senior management.
Answer: Commitment
Q122. In a partnership audit it is necessary for a firm to get its accounts audited.
(a) True
(b) False
Answer: (b) False
Q123. The audit fee for the year must be shown in the Profit and Loss Account of the company in case of company audit.
(a) True
(b) False
Answer: (a) True
Q124. Company audit is statutory responsibility of a specified and definite nature.
(a) True
(b) False
Answer: (a) True
Q125. A letter of engagement is a —- of acceptance of offer made by the company.
Answer: Confirmation
Q126. A copy of the letter of engagement is also sent to the company for —- as an acknowledgement of agreement as to terms.
Answer: Signature
Q127. The auditor should confirm that the —- issued by the Securities and Exchange Board of India (SEBI) had been duly followed.
Answer: Guidelines
Q128. The auditor must verify that the amount of the —- allotted do not exceed the authorized or nominal capital of the company.
Answer: Shares
Q129. In view of the utility of auditing, it is essential for every form of business organization to get its accounts audited.
(a) True
(b) False
Answer: (b) False
Q130. If a company is passing through a financial crisis, it need not get its accounts- audited for a few years.
(a) True
(b) False
Answer: (b) False
Q131. Examine whether the Articles of Association is in —- for company to issue redeemable preference shares
Answer: Accordance
Q132. If there is any premium on —- that was provided from either out of the Share Premium Account or out of divisible profits of the company.
Answer: Redemption
Q133. Alteration of share capital involves —- fully-paid up shares into stock or vice versa.
Answer: Converting
Q134. Auditor should examine the cancelled share certificates and tally the same with the —- of new certificates issued.
Answer: Counterfoils
Q135. A public company limited by shares may convert its fully-paid up shares into share warrant.
(a) True
(b) False
Answer: (a) True
Q136. A share warrant entitles the bearer to the shares specified therein, and it may be transferred merely by delivery of possession.
(a) True
(b) False
Answer: (a) True
Q137. The auditor needs to ensure that the procedure prescribed by the —- regarding transmission of shares has been strictly followed.
Answer: Articles
Q138. The auditor must confirm that the —- testifying the authority of the legal representative have been properly verified.
Answer: Documents
Q139. In the case of redeemable preference shares, the terms of redemption or conversion should also be stated, together with the earliest date of redemption or conversion.
(a) True
(b) False
Answer: (a) True
Q140. The amount originally paid-up on forfeited shares, not yet reissued, should be shown separately.
(a) True
(b) False
Answer: (a) True
Q141. The source from which bonus shares are issued need not be specified in disclosure of share capital.
(a) True
(b) False
Answer: (b) False
Q142. The Indian Audit and Accounts Department functions under the —-
Answer: Comptroller and Auditor General
Q143. —- forms an indispensable part of the financial administration.
Answer: Audit
Q144. —- aims to ensure accountability of the executive in respect of public revenue and expenditure.
Answer: Government audit
Q145. Initially government auditing in India is primarily —- oriented.
Answer: Expenditure
Q146. The auditor of a Government Company shall be appointed or reappointed by the Central Government on the advice of the —- of India.
Answer: Comptroller and Auditor General
Q147. The annual report on the working and affairs of the company shall be prepared within —- months of the annual general meeting.
Answer: Three
Q148. The —- Act, 1974 has enlarged the concept of Government Company for the purposes of audit.
Answer: Companies- Amendment
Q149. —- is essential to government accountability to the public.
Answer: Auditing
Q150. Conducting audit work in accordance with —- is a matter of personal and Notes organizational responsibility.
Answer: Ethical principles
Q151. A —- is the verification of the financial statements of a legal entity, with a view to express an audit opinion.
Answer: Government Financial Audit
Q152. —- is not attainable because of the nature of audit evidence and the characteristics of fraud.
Answer: Absolute assurance
Q153. GAGAS establish reporting standards for financial audits in addition to the standards contained in the —- standards.
Answer: AICPA
Q154. Formation and expression of the independent audit opinion are conducted in compliance with the —- .
Answer: International auditing standards
Q155. Statutory auditors with whom a contract for independent financial audit is signed may be dismissed only if —- exist.
Answer: Appropriate reasons
Q156. The acceptance of obligation for performance of independent financial audit is documented with a —- of audit engagement.
Answer: Letter of acceptance
Q157. The seal of the —- has an ellipsoid form.
Answer: Statutory auditor
Q158. —- is considered at the financial statement level during the audit planning process.
Answer: Audit Risk
Q159. Audit risk is the risk that an —- may give an inappropriate opinion on financial information that is materially misstated.
Answer: Auditor
Q160. —- Sampling in auditing stands for the technique of forming an opinion about a group of items on the basis of an examination of a few of the items.
Answer: Statistical
Q161. The —- of assets like land the buildings should be verified by examining title deeds.
Answer: Ownership
Q162. The auditor has to satisfy himself that the —- exhibit a true and fair state of affairs having regard to all material aspects.
Answer: Statements
Q163. —- special audit report is commissioned from outside the company.
Answer: External
Q164. A —- company that owns subsidiaries in foreign countries may commission a special audit of these subsidiaries so as to determine their viability.
Answer: Multinational
Q165. A qualified —- special audit report is issued when an auditor discovers anomalies in the financial statements of an organization.
Answer: Opinion
Q166. There are profound differences between the private and —- sectors, as well as similarities.
Answer: Public
Q167. In determining the scope of an audit of —- auditors should consider all key factors influencing the relationship between goods and services produced and the resources used to produce them.
Answer: Efficiency
Q168. A results-oriented audit —- should be followed wherever possible, because it can usually accomplish the audit objectives at least cost.
Answer: Approach
Q169. —- and capital resources are generally measured in dollars.
Answer: Material
Q170. Efficiency information is necessary for —- to determine whether the level of efficiency achieved meets an acceptable standard.
Answer: Management
Q171. Auditing efficiency can directly or indirectly help departments and agencies to identify —- to provide more or better services at the same or lower cost.
Answer: Opportunities
Q172. —- is expressed as the percentage of the available capacity that is actually used.
Answer: Utilization
Q173. Under the Act of 1971, the scope and extent of audit is determined by the —- .
Answer: Comptroller and Auditor General
Q174. Audit is an instrument of —- .
Answer: Accountability
Q175. —- includes audit of provisions of funds, sanctions, compliances and propriety.
Answer: Fiscal Accountability
Q176. —- includes audit of efficiency, economy and effectiveness
Answer: Managerial Accountability
Q177. A banking company requires maintaining the books of account in accordance with section 209 of the Companies Act —-
Answer: 1956
Q178. The financial position of a bank is depended on the condition of assets, loan, investment, cash balanced and those of its —-
Answer: Liabilities and fund
Q179. The large PSBs having balance sheet size (assets + liabilities) of above —- can exercise managerial autonomy in regard to appointment of SBAs from the year 2008- 09 onwards.
Answer: 1 lac crore
Q180. The consent given by an audit firm will be treated as —-
Answer: Irrevocable
Q181. The auditors of the State Bank of India are to be appointed by the —- in consultation with the Central Government.
Answer: Reserve Bank of India
Q182. Internal control evaluation is an important element of —-
Answer: Audit process
Q183. Co-operative Society shall not make a loan to any person other than a —-
Answer: Member
Q184. —- main role is preparation of financial statements and auditor-s report of insurance companies.
Answer: IRDA
Q185. —- is the actual claims paid less adjustments for reinsurance recoveries on them and provisions for claims outstanding as on the date of financial reporting.
Answer: Incurred Claims
Q186. A new concept called ‘Premium Deficiency- was brought in by IRDA as a measure for augmenting policyholders- funds, it mandated that if the sum of expected claims costs, related expenses etc. exceed the —- the said excess is to be recognized as Premium Deficiency.
Answer: URR
Q187. The aims of the society should not be inconsistent with the principles of social justice, and its bylaws not contrary to the provisions of the —-
Answer: KCS Act and Rules
Q188. With sanction of —- Co-operative societies may also borrow from credit agencies subject to the limits and conditions prescribed.
Answer: State Government
Q189. While the main object of a —- is to earn profit, the object of a —- is to render service to its members.
Answer: Joint Stock Company; Co-operative Society
Q190. Proper classification of assets and provisioning of cooperative institutions are based on —-
Answer: IRAC Norms
Q191. A member in part-time practice is not entitled to perform —- functions including tax audit.
Answer: Attest
Q192. While doing the audit the auditor is expected to follow general principles of auditing as mentioned in Auditing and —- Standards.
Answer: Assurance
Q193. While the auditor has to apply the basic principles of audit he has to keep in mind that the requirements of —- audit are different and accordingly he should design his audit programme.
Answer: VAT
Q194. The results of the audit procedure adopted by the auditor should be such as will give him a reasonable assurance regarding the —- of sales reported in the returns.
Answer: Figures
Q195. The auditor is also required to comment on the timely —- of the returns under the VAT law.
Answer: Filing
Q196. The auditor has to take a judgement of his own regarding the —- and —- of the audit checks to be applied.
Answer: Adequacy, appropriateness
Q197. While performing the audit under VAT law the auditor is expected to conduct the audit presuming himself to be the tax —-.
Answer: Assessor
Q198. The auditor is also expected to give the —- of additional tax liability/additional refund arising on his verification of the returns together with the books of account.
Answer: Summary
Q199. A cost accounting system designed to exercise control over cost may be different from the one if the —- is to fix price.
Answer: Objective
Q200. The cost auditor should examine whether the methods laid down for ascertaining expenses as —- or —- are cases in point.
Answer: Direct, indirect
Q201. Cost audit, apart from having all the normal —- of audit namely vouching, verification etc. has within its compass elements of efficiency audit.
Answer: Ingredients
Q202. The principal object of cost audit is to see that the cost data placed before the management are —- and reliable.
Answer: Verified
Q203. Cost audit is often introduced for the purpose of —- of prices.
Answer: Fixation
Q204. In most of the countries the concept of cost audit as such is also non-existent and the objectives, whatever they may be, are achieved by properly designing the scope and —- of internal audit.
Answer: Depth
Q205. The records are broadly based on the elements of —-
Answer: Cost
Q206. —- involves an intelligent scrutiny of the books of account of a company, with reference to documents, vouchers and other relevant records.
Answer: Audit operation
Q207. —- is a process which measures the internal and external consistency of an organisation-s values base.
Answer: Ethical auditing
Q208. In relation to the specific factors of the ethical environment, studies on codes of ethics have dominated the —- and auditing literature.
Answer: Ethical accounting
Q209. —- does not include personal misconduct by those charged with governance, management or employees of the entity.
Answer: Non-compliance
Q210. The mission of —- is to serve the public interest, strengthen the worldwide accountancy profession and contribute to the development of strong international economies.
Answer: IFAC
Q211. —- does not apply to other assurance engagements in which the auditor is specifically engaged to test and report separately on compliance with specific laws or regulations.
Answer: International Standard on Auditing (ISA)
Q212. The auditor is responsible for obtaining reasonable assurance that the financial statements, taken as a whole, are free from —-
Answer: Material misstatement
Q213. The —- are required to make qualification in their report in case any item is treated differently from the prescribed Accounting Standard.
Answer: Statutory auditors
Q214. —- enacted by parliament is likely to have profound influence on auditing e.g. Public Procurement Act 2004, Money Laundering Act.
Answer: Statute laws
Q215. The —- determination has been made that auditing is central to public confidence in our capital markets.
Answer: Political
Q216. In E-commerce, documents such as invoices are exchanged using a standard method known as —-
Answer: Electronic Data Interchange (EDI)
Q217. —- means “suitable for use in a court of law”, and it is to that standard and potential outcome that forensic accountants generally have to work.
Answer: Forensic
Q218. —- can be defined as accounting/auditing skills to situations that have legal consequences.
Answer: Forensic accounting/auditing
Q219. The purpose of —- audit is to review and provide feedback, assurances and suggestions.
Answer: IT
Q220. Assurances about an —- can be obtained only if all the components are evaluated and secured.
Answer: Information system
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