Audit Knowledge Quiz

What is the main purpose of an audit?

• To prepare financial statements

• To verify the accuracy of financial statements

• To sell company products

• To manage company operations

Who usually performs an external audit?

• The company's internal accountant

• A member of the company's management

• An independent audit firm

• The company's marketing team

What does "materiality" in auditing refer to?

• The audit report's length

• The importance of financial errors

• The number of auditors on the team

• The cost of auditing

Which document is typically audited?

• Marketing plan

• Financial statements

• Business strategy

• Employee handbook

What does an auditor's "opinion" on financial statements indicate?

• The auditor's personal view of the company

• The accuracy and fairness of the financial statements

• The company's future performance

• The audit firm's reputation

What is the role of internal controls?

• To enhance company marketing

• To ensure accurate financial reporting and prevent fraud

• To manage employee performance

• To increase company sales

Which type of audit is conducted to check the compliance with laws and regulations?

• Financial audit

• Compliance audit

• Operational audit

• Performance audit

What is the main objective of a performance audit?

• To evaluate the accuracy of financial statements

• To assess the efficiency and effectiveness of operations

• To review compliance with laws

• To determine market trends

What is "independence" in auditing?

• The ability of auditors to work from home

• The need for auditors to be free from any influences that could affect their judgment

• The size of the audit team

• The number of hours spent on an audit

Who is responsible for the financial statements' accuracy?

• The auditor

• The company's management

• The audit committee

• The shareholders