611. Inspection report/receiving report supports entries in
A. sales book and sales return book
B. purchase book and sales return book
C. cash book and purchase book
D. Sales book and purchase return book
612. Tests of control are not concerned with_
A. Existence of controls
B. Effectiveness of controls
C. Continuity of controls
D. Designing of controls
613. Which of the following is not an inherent limitation of internal control system?
A. Management override
B. Collusion among employees
C. Inefficiency of internal auditor
D. Abuse of authority
614. An auditor should study and evaluate internal controls to
A. determine whether assets are safeguarded
B. Suggest improvements in internal control
C. Plan audit procedures
D. express and opinion
615. XYZ Ltd. Conducts quarterly review of operations. It discovers that unrest in a south east Asian country may affect the supply of raw materials to it the next quarter. This is an example of :
A. risk assessment
B. control procedure
C. supervision
D. control environment
616. If the auditor assesses control risk as high….
A. Document the conclusions
B. documents the reasons along with conclusions
C. perform tests of control
D. perform walk through tests
617. The overall attitude and awareness of an entity’s board of directors concerning the importance of internal control is reflected in
A. accounting controls
B. control environment
C. control procedures
D. supervision
618. Which of the following are included in test of control?
A.Reperformance and observation
B. Inquiry and analytical procedures
C. Comparison and conformation
D. Inspection and verification
619. In comparison to the independent auditor, an internal auditor is more likely to be concerned with
A. cost accounting system
B. internal control system
C. legal compliance
D. accounting system
620. When an independent auditor decides that the work performed by internal auditors may have bearing on the nature, timing and extent of planned audit procedures, the independent auditor should evaluate objectivity of the internal auditor. The most important factor influencing it would be
A. organizational level to which he reports
B. system of quality control of his work
C. qualification of internal auditor
D. all of the above