1111. The scope of work of statutory audit for a company is decided by the :
A. Shareholders
B. Management
C. Government
D. Company law *
1112. The object of internal audit is :
A. To prevent errors and frauds
B. To detect errors and frauds
C. To improve financial control
D. All of the above *
1113. Internal auditor can be removed by the :
A. Government
B. Shareholders
C. Management *
D. None of the above
1114. Control and management of audit profession is in the hands of :
A. Government
B. Regulatory bodies
C. The Chartered Accountants’ Association of Pakistan
D. The Pakistani Institute of Cost and Management Accountants
1115. Internal check is carried on by :
A. Staff specially appointed for the purpose
B. Internal auditor
C. The members of the staff among themselves *
D. Supervisor of the staff
1116. Internal check is essential for :
A. Petty traders
B. Cash transactions in a significant business
C. A concern using automatic equipments
D. None of the above
1117. The risk that material errors may occur in the preparation of financial statements is known as :
A. Audit risk
B. Control risk
C. Inherent risk *
D. Detection risk
1118. The auditors main objective in making a preliminary evaluation of internal control is to :
A. Assess whether the management has met its responsibility to establish an effective system
B. Determine the extent to which internal controls will be relied upon *
C. Determine which internal controls he might want to rely on.
D. Determine which system flaws should be reported to management.
1119. The nature , timing and extent of substantive procedure are influenced by the level of :
A. Inherent risk
B. Control risk
C. Both A and B *
D. None of the above
1120. Internal control system includes :
A. Financial controls
B. Administrative controls
C. Both A and B *
D. None of the above