Audit Quiz

What is the origin of the term 'audit'?

• Latin term 'audire'

• Greek term 'audire'

• Spanish term 'audire'

• French term 'audire'

What does auditing refer to?

• A systematic examination of financial statements

• A random examination of financial statements

• A physical evaluation of financial statements

• An emotional evaluation of financial statements

What is the primary purpose of an audit?

• To confuse stakeholders

• To hide financial information

• To provide a true and fair view of financial statements

• To create fraudulent financial statements

What is the role of an auditor in the audit process?

• To create financial statements

• To verify the authenticity of financial statements

• To ignore financial statements

• To manipulate financial statements

What does integrity mean in the context of auditing?

• Dishonesty in work

• Honesty, frankness, and sincerity in work

• Manipulation of financial data

• Ignoring financial data

What is the significance of objectivity and independence for an auditor?

• To be biased in audit work

• To be influenced by personal whims and fancies

• To be objective and independent in audit work

• To be influenced by others

What is the importance of skill and competence for an auditor?

• Having no knowledge of auditing principles

• Being aware of recent developments in auditing

• Being a member of the ICAI is sufficient

• No need for any qualifications

What does confidentiality entail for an auditor?

• Sharing client's affairs with others

• Maintaining secrecy about client's affairs

• Discussing client's affairs openly

• Ignoring client's affairs

What is the purpose of audit planning?

• To start auditing without any plan

• To acquire knowledge about client's business

• To avoid understanding the accounting system

• To skip evaluating internal control system

What are working papers in auditing?

• Evidence that work has not been done

• Evidence that work has been done by the auditor

• Evidence that work is incorrect

• Evidence that work is incomplete