ACC311 – Quiz 02 Winter Fundamentals of Auditing

VUSRQuiz 02Winter Semester Fundamentals of Auditing ACC311Marks 10=1x10Student ID/ Login ID: —————————Student Name: —————————Please read the following instructions carefully before attempting Quiz:• This Quiz covers Lesson no. 15 to 20.• Due date of Quiz no 02 is April 1, 2016. It means that you can submit your solution file till 12 O’clock mid night April 1, 2016• All instructions will be considered during marking of quiz. So, must consider all instructions carefully• To attempt a quiz, students MUST submit their solution files (word documents) in the following format:Question # Correct Options1 e.g C2 A3 B• Quiz file must be in Word document, all other would be marked ZERO• Submit your answer in the Tabular Format given above, answerssubmitted in other than tabular format will be marked ZERO• Give answers according to the question• Use only the BLACK font color• Don’t rely only on handouts, read your recommended books as well• Avoid choosing more than one option• Make sure that you upload the solution before due date. No solution will be accepted through E-mailafter the due date• Before clicking on the button “upload assignment”, make sure that you are uploading your own file andof the relevant subject. Wrongly uploaded file may not be replaced afterwards• Cheating or copying of solution is strictly prohibited; No credit will be given to copied Quiz• Once you upload the quiz on LMS, it will not be replaced under any conditionwww.VUSR.nethttp://lms.vusr.netVUSRFundamentals of Auditing ACC311 Quiz 02Winter Semester 2016Choose the correct/best option from given MCQs and put your answer in tabularform as drawn above.1. Which one of the following is FALSE about Internal Control Evaluation Checklists(ICEC)?a. ICEC is developed to overcome the shortcomings of Internal ControlQuestionnaireb. The rules of constructing ICEC is different than construction of InternalControl Questionnairec. It is designed to determine; whether desirable internal controls are presentd. It is normally employed where system’s information has already beenrecorded2. Which one of the following examples constitutes the most reliable piece of auditevidence available to an auditor?a. A written confirmation from a bankb. A supplier’s invoice kept in the client’s recordsc. A duplicate sales receipt dated and signedd. A receipted shipping document3. Inquiries of warehouse personnel concerning possible obsolete or slow-movinginventories provide assurance about which one of the following management’sassertions?a. Completenessb. Existencec. Valuationd. Presentation4. A well designed Internal Control Questionnaire (ICQ) should incorporate thefollowing EXCEPT:a. Be a sufficient source of data for the evaluation of internal controlsb. Be organized by individual functional organizationsc. Identify the internal control system’s strengths and weaknessesd. Should include simple yes or no responses but not narrative responses5. Test of controls comprise of testing all of the following three things EXCEPT:a. Designb. Operating efficiencyc. Implementationd. Operating effectivenesswww.VUSR.nethttp://lms.vusr.netVUSR6. Which one of the following is an alternative name for ‘Test of controls’?a. Analytical proceduresb. Compliance testsc. Control proceduresd. Substantive tests7. Techniques of Audit Tests include all of the following EXCEPT:a. Inspectionb. Observationc. Examinationd. Computation8. Reliability of audit evidence is influenced by all of the following factors EXCEPT:a. Source of the informationb. Timelinessc. Quantityd. Objectivitye.9. Auditors can use several types of audit procedures to test controls. Which one of thefollowing type of audit procedures is least likely to be used during tests of controls?a. Inquiries of client personnelb. Examination of documents, records, and reportsc. Physical examination of assetsd. Observation of control-related activities10. The various methods of ascertaining and documenting the internal control system ofan entity include all of the following EXCEPT:a. Organization chartsb. Organization process graphc. Internal control questionnaires (ICQs)d. Internal control evaluation checklists (ICEC)