Question 1

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

Accepted Answer

False

Question 2

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

Accepted Answer

Financial (attest) audits include the examination and evaluation of financial records, audit of financial systems and transactions, audit of internal control and internal audit functions, and evaluation of compliance with applicable statutes and regulations.

Question 3

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

Accepted Answer

Financial (attest) audits often include an evaluation of an entity's compliance with applicable statutes and regulations to ensure that financial transactions and management practices adhere to legal and regulatory requirements.

Question 4

Transaction audit essentially seeks to address the following issues of risks to:
i. Regularity
ii. Performance
iii. Propriety
iv. Financial Control
A)All of the above
B)(i), (ii) & (iii) only
C)(i), (iii) & (iv) only
D)(i), (ii) & (iv) only

Accepted Answer

Transaction audit focuses on regularity, propriety, and financial control to ensure transactions are conducted according to rules, are appropriate, and are properly controlled. Performance is typically assessed in performance audits, not transaction audits.

Question 5

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

Accepted Answer

Transaction audit focuses on the verification and examination of specific transactions within a given period, not necessarily linked to the assurance on an entire set of financial statements for a particular year.

Question 6

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

Accepted Answer

Risks of financial irregularity are considered material if they could reasonably influence the economic decisions of users taken on the basis of the financial statements. Not all risks of financial irregularity will lead to a qualification of the audit opinion; it depends on their nature and magnitude in relation to the financial statements as a whole.

Question 7

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

Accepted Answer

Finance Accounts and Appropriation Accounts are the types of financial statements audited for Union, State, and UT Governments. Balance Sheets and Statements of Expenditure are not typically audited in this context.

Question 8

Financial Audit of Government Companies is conducted by
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

Accepted Answer

The answer of Financial Audit of Government Companies is conducted...

Question 9

The audit of financial statements of Government Companies conducted by the C&AG is called
A)Financial Audit
B)Supplementary Audit
C)Attest Audit
D)Compliance Audit

Accepted Answer

The audit of financial statements of Government Companies conducted by the Comptroller and Auditor General (C&AG) is referred to as a Supplementary Audit. This is because the primary audit is conducted by an independent auditor, and the C&AG performs an additional or supplementary review.

Question 10

Financial Audit of Autonomous Bodies receiving financial assistance is governed by ______ of CAG's DPC Act 1971
A)13 & 14
B)14 & 15
C)13 & 15
D)16

Accepted Answer

Sections 14 and 15 of the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971, govern the financial audit of autonomous bodies receiving financial assistance.

Question 11

The International Standards of Auditing (ISAs) have been developed by
A)The International Federation of Accountants
B)The International Auditing Practices Committee
C)The Internationa Auditing & Accounting Standards Board
D)The INTOSAI

Accepted Answer

The International Standards of Auditing (ISAs) are developed by the International Federation of Accountants (IFAC) through its independent standard-setting body, the International Auditing and Assurance Standards Board (IAASB).

Question 12

The Auditing Standards of the C&AG of India comprise of
I )General Standards
Ii) Field Audit Standards
Iii) Field Standards
Iv) Reporting Standards
A)(i) to (iii) only
B)(i) & (ii) only
C)(i), (iii) & (iv) only
D)All of the above

Accepted Answer

The answer of The Auditing Standards of the C&AG of...

Question 13

Which of these standards regulate the condut of the auditor
A)General Standards
B)Field Audit Standards
C)Field Standards
D)Reporting Standards

Accepted Answer

General Standards regulate the conduct of the auditor.

Question 14

Which of these standards regulate the audit activity of the auditor
A)General Standards
B)Field Audit Standards
C)Field Standards
D)Reporting Standards

Accepted Answer

The answer of Which of these standards regulate the audit...

Question 15

The Primary objective of a financial audit is to
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

Accepted Answer

The primary objective of a financial audit is to express an opinion on the financial statements, assessing whether they present a true and fair view of the organization's financial position and performance in accordance with the applicable financial reporting framework.

Question 16

The general audit objectives are also called
A)Opinions
B)Assertions
C)Criteria
D)None of these

Accepted Answer

The general audit objectives are often referred to as assertions. These are statements made by management regarding the financial statements, which auditors evaluate for accuracy and completeness during an audit.

Question 17

Which of these is the correct set of general financial audit objectives for income & expenditure account
A)Completeness, Occurrence, Measurement, Disclosure, Regularity
B)Completeness, Occurrence, Measurement, Disclosure, Existence
C)Completeness, Occurrence, Existence, Disclosure, Regularity
D)Completeness, Ownership, Measurement, Disclosure, Regularity

Accepted Answer

The correct set of general financial audit objectives for income & expenditure account includes Completeness (all transactions and accounts that should be presented are indeed presented), Occurrence (transactions and events that have been recorded have occurred and pertain to the entity), Measurement (transactions and events have been recorded in the proper amounts), Disclosure (all relevant information is disclosed to users of the financial statements), and Regularity (transactions and events conform to the laws and regulations).

Question 18

Which of these is the correct set of general financial audit objectives for balance sheet
A)Completeness , Existence , Valuation , Ownership , Disclosure
B)Completeness , Existence , Measurement , Ownership , Disclosure
C)Completeness , Occurence , Valuation , Ownership , Disclosure
D)Completeness , Regularity , Valuation , Ownership , Disclosure

Accepted Answer

The correct set of general financial audit objectives for balance sheet accounts includes Completeness, Existence, Valuation, Ownership, and Disclosure. These objectives ensure that all transactions and accounts are complete, exist at the balance sheet date, are valued correctly, are owned by the entity, and are properly disclosed in the financial statements.

Question 19

The legal right to sue and recover an account receivable is the test of
A)Existence
B)Ownership
C)Completeness
D)None of these

Accepted Answer

The legal right to sue and recover an account receivable tests ownership, as it demonstrates the entity's right to the asset.

Question 20

This financial audit objective directly tests for potential overstatement of assets and liabilities
A)Existence
B)Ownership
C)Completeness
D)None of these

Accepted Answer

Existence tests whether assets or liabilities of the company actually exist at a given date, directly addressing the risk of overstatement.

Quiz 1: Understanding Financial Audit and Standards for Auditors

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

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

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

Transaction audit essentially seeks to address the following issues of risks to: i. Regularity ii. Performance iii. Propriety iv. Financial Control

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

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

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

Financial Audit of Government Companies is conducted by

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

Financial Audit of Autonomous Bodies receiving financial assistance is governed by ______ of CAG's DPC Act 1971

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

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

Which of these standards regulate the condut of the auditor

Which of these standards regulate the audit activity of the auditor

The Primary objective of a financial audit is to

The general audit objectives are also called

Which of these is the correct set of general financial audit objectives for income & expenditure account

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

The legal right to sue and recover an account receivable is the test of

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