CIS | Lesson 9

What are audit objectives in accounting?

• To ignore legal regulations

• To ensure financial statements are free from material misstatements

• To promote internal control weaknesses

• To maximize profits for the organization

What is the responsibility of auditors regarding fraud and errors?

• Detect instances of material fraud and errors

• Ignore any fraud or errors found

• Cover up fraud and errors

• Encourage fraud and errors

What is the purpose of developing an audit opinion?

• To avoid compliance with regulations

• To hide financial information

• To form an opinion on the accuracy of financial statements

• To ignore organizational operations

What is the main goal of examining financial statements during an audit?

• To ensure they are complete and accurate

• To create fraudulent financial statements

• To avoid compliance with regulations

• To ignore internal controls

What is the purpose of conducting audit procedures?

• To avoid risk assessment

• To ignore internal control evaluation

• To evaluate an organization's financial records

• To increase financial misstatements

What is the final step in the audit process?

• Risk Assessment

• Reporting

• Internal Control Evaluation

• Audit Testing

What is a key technique for gathering audit evidence?

• Not recalculating

• Avoiding external confirmations

• Ignoring financial documents

• Inspection of Records

What is the importance of proper documentation in accounting?

• Avoiding audit quality

• Ignoring relevant standards and regulations

• Creating confusion and inefficiency

• Ensuring compliance, accuracy, and efficiency

What should be done to maintain a consistent filing system for financial documents?

• Establish subcategories and chronological order

• Avoid organizing files

• Keep documents scattered

• Ignore updating documentation

Why is it important to keep documentation updated during the audit process?

• To create inconsistencies

• To ensure audit programs are tailored to the client's unique risks

• To ignore new risks identified

• To avoid compliance with standards