PGT (Commerce previous year questions) (HTET) (Part – III)Total Questions: 10051. Audit programme is prepared by:A. The auditorB. The clientC. The audit assistantsD. The auditor and his audit assistantsCorrect Answer: D. The auditor and his audit assistants52. The working papers which auditor prepares for financial statements audit are:A. Evidence for audit conclusionsB. Owned by the clientC. Owned by the auditorD. Retained in auditor's office until a change in auditorsCorrect Answer: C. Owned by the auditor53. The quantity of audit working papers complied on engagement would most be affected by:A. Management's integrityB. Auditor's experience and professional judgmentC. Auditor's qualificationD. Control riskCorrect Answer: B. Auditor's experience and professional judgment54. Which of the following best describes the primary purpose of audit programme preparation?A. To detect errors or fraudB. To comply with GAAPC. To gather sufficient appropriate evidencеD. To assess audit riskCorrect Answer: C. To gather sufficient appropriate evidencе55. Which of the following is not an advantage of the preparation of working paper?A. To provide a basis for review of audit workB. To provide a basis for subsequent auditsC. To ensure audit work is being carried out as per programmeD. To provide a guide for advising another client on similar issuesCorrect Answer: D. To provide a guide for advising another client on similar issues56. The auditor's permanent working paper file should not normally, include:A. Extracts from client's bank statementsB. Past year's financial statementsC. Attorney's lettersD. Debt agreementsCorrect Answer: A. Extracts from client's bank statements57. For what minimum period should audit working papers be retained by audit firm?A. For the time period the entity remains a client of the audit firmB. For a period of ten yearsC. For a period auditor opines them to be useful in servicing the clientD. For the period the audit firm is in existenceCorrect Answer: C. For a period auditor opines them to be useful in servicing the client58. Which of the following factors would least likely affect the quantity and content of an auditor's working papers?A. The assessed level of control riskB. The possibility of peer reviewC. The nature of auditor's reportD. The content of management representation letterCorrect Answer: D. The content of management representation letter59. Which of the following statement is true regarding an auditor's working papers?A. They document the level of independence maintained by the auditorB. They should be considered as the principle support for the auditor's reportC. They should not contain details regarding weaknesses in the internal control systemD. They help the auditor to monitor the effectiveness of the audit firm's quality controlCorrect Answer: B. They should be considered as the principle support for the auditor's report60. Which of the following statement best describes the understanding with respect to ownership and custody of working papers prepared by an auditor?A. The working papers may be obtained by third parties when they appear to be relevant to issues raised in litigationB. The safe custody of working papers is the responsibility of client, if kept at his premisesC. The working papers must be retained by an audit firm for a period of 10 yearsD. Successor auditors may have access to working papers of the predecessor auditors. The approval of client is not required.Correct Answer: A. The working papers may be obtained by third parties when they appear to be relevant to issues raised in litigationSubmit Quiz« Previous12345678910Next »
