Question 1

Insurance relating to the year 2013-14 was paid in 2012-13 in advance. The same was however booked as expenditure in 2012-13. This does not meet the objective of

Accepted Answer

A)  Existence
B)  Ownership
C)  Completeness
D)  Occurrence D

Question 2

The following types of financial statements are audited in respect of Union, State and UT Governments
i. Finance Accounts
ii. Appropriation Accounts
iii. Balance Sheet
iv. Statements of Expenditure

Accepted Answer

A)  (i)  & (ii)  only
B)  (i)  to (iii)  only
C)  (i)  & (iii)  only
D)  All of the above A

Question 3

The audit of financial statements of Government Companies conducted by the C&AG is called

Accepted Answer

A)  Financial Audit
B)  Supplementary Audit
C)  Attest Audit
D)  Compliance Audit B

Question 4

The Primary objective of a financial audit is to

Accepted Answer

A)  Examine the accounts and records
B)  Srutinize financial statements
C)  Point out overstatements and understatements of account balances
D)  Express an opinion on the financial statements

Question 5

If the monthly accounts of some Treasuries or Public Works Divisions are excluded from the Accounts of a State Government, it affects this objective

Accepted Answer

A)  Existence
B)  Disclosure
C)  Completeness
D)  Occurrence

Question 6

Financial Audit of Government Companies is conducted by

Accepted Answer

A)  Chartered Accountants appointed by the companies
B)  Chartered Accountants appointed by Ministry of Company Affairs
C)  Chartered Accountants appointed by C&AG
D)  C&AG

Question 7

The International Standards of Auditing (ISAs) have been developed by

Accepted Answer

A)  The International Federation of Accountants
B)  The International Auditing Practices Committee
C)  The Internationa Auditing & Accounting Standards Board
D)  The INTOSAI

Question 8

Which of these is the correct set of general financial audit objectives for balance sheet

Accepted Answer

A)  Completeness , Existence , Valuation , Ownership , Disclosure
B)  Completeness , Existence , Measurement , Ownership , Disclosure
C)  Completeness , Occurence , Valuation , Ownership , Disclosure
D)  Completeness , Regularity , Valuation , Ownership , Disclosure

Question 9

Which of these standards regulate the condut of the auditor

Accepted Answer

A)  General Standards
B)  Field Audit Standards
C)  Field Standards
D)  Reporting Standards

Question 10

Financial (attest) audit includes:
i. Examination and evaluaion of financial records
ii. Audit of financial systems and transactions
iii. Audit of intenal control and internal audit functions
iv. Evaluation of Compliance with applicable statutes and regulations

Accepted Answer

A)  (i)  only
B)  (i)  & (ii)  only
C)  (i)  to (iii)  only
D)  All of the above

Question 11

Risks of financial irregularity are always material for the purpose of qualifying audit opinion on the finanicial statements

Accepted Answer

A) True 
 B)False

Question 12

Transaction audit is linked to a specific assurance on an individual set of financial Statements in a particular year

Accepted Answer

A) True 
 B)False

Question 13

Financial (attest) audit includes an evaluation of Compliance with applicable statutes and regulations

Accepted Answer

A) True 
 B)False

Question 14

Which of these standards regulate the audit activity of the auditor

Accepted Answer

A)  General Standards
B)  Field Audit Standards
C)  Field Standards
D)  Reporting Standards

Question 15

The Auditing Standards of the C&AG of India comprise of
I )General Standards
Ii) Field Audit Standards
Iii) Field Standards
Iv) Reporting Standards

Accepted Answer

A)  (i)  to (iii)  only
B)  (i)  & (ii)  only
C)  (i) , (iii)  & (iv)  only
D)  All of the above

Question 16

The general audit objectives are also called

Accepted Answer

A)  Opinions
B)  Assertions
C)  Criteria
D)  None of these

Question 17

A financial audit is intended to give

Accepted Answer

A)  Qualified Assurance
B)  Absolute Assurance
C)  Positive Assurance
D)  None of these

Question 18

Financial (attest) audit is primarily concerned with expression of audit opinion on a set of financial statements.

Accepted Answer

A) True 
 B)False

Question 19

This financial audit objective directly tests for potential overstatement of assets and liabilities

Accepted Answer

A)  Existence
B)  Ownership
C)  Completeness
D)  None of these

Question 20

Materiality is classified by

Accepted Answer

A)  Context
B)  Nature
C)  Value
D)  All of these

Exam 1: Understanding Financial Audit and Standards for Auditors

Insurance relating to the year 2013-14 was paid in 2012-13 in advance. The same was however booked as expenditure in 2012-13. This does not meet the objective of

The following types of financial statements are audited in respect of Union, State and UT Governments i. Finance Accounts ii. Appropriation Accounts iii. Balance Sheet iv. Statements of Expenditure

The audit of financial statements of Government Companies conducted by the C&AG is called

The Primary objective of a financial audit is to

If the monthly accounts of some Treasuries or Public Works Divisions are excluded from the Accounts of a State Government, it affects this objective

Financial Audit of Government Companies is conducted by

The International Standards of Auditing (ISAs) have been developed by

Which of these is the correct set of general financial audit objectives for balance sheet

Which of these standards regulate the condut of the auditor

Financial (attest) audit includes: i. Examination and evaluaion of financial records ii. Audit of financial systems and transactions iii. Audit of intenal control and internal audit functions iv. Evaluation of Compliance with applicable statutes and regulations

Risks of financial irregularity are always material for the purpose of qualifying audit opinion on the finanicial statements

Transaction audit is linked to a specific assurance on an individual set of financial Statements in a particular year

Financial (attest) audit includes an evaluation of Compliance with applicable statutes and regulations

Which of these standards regulate the audit activity of the auditor

The Auditing Standards of the C&AG of India comprise of I ) General Standards Ii) Field Audit Standards Iii) Field Standards Iv) Reporting Standards

The general audit objectives are also called

A financial audit is intended to give

Financial (attest) audit is primarily concerned with expression of audit opinion on a set of financial statements.

This financial audit objective directly tests for potential overstatement of assets and liabilities

Materiality is classified by