Auditing Multiple Choice Test - Level 2 (CRA)

Answers are provided at the bottom of this document.

Questions

1. Which of the following is a good reason why the auditor should properly plan an audit?
   1. to enable the auditor to obtain sufficient appropriate audit evidence
   2. to complete the audit in a timely fashion
   3. to enable the disclosure of the scope and purpose of the audit
   4. all of the above
2. The following are ways in which a client can be contacted to arrange an audit, EXCEPT for one of the following. Which one?
   1. by telephone
   2. in writing
   3. a surprise visit
   4. contacting the client's authorized representative

3. In which order should the following four steps be taken when an auditor evaluates a client's internal control?

   I. determine internal controls that should prevent or detect errors and other irregularities

   II. identify weaknesses to determine their effect on the extent of auditing procedures to apply

   III. determine whether the necessary procedures are being followed satisfactorily

   IV. consider the type of errors or fraud and other irregularities that could occur

   1. I, II, III and IV
   2. I, III, IV and II
   3. IV, I, III and II
   4. III, IV, I and II
4. An audit manual:
   1. is a guide for the conduct of an examination
   2. takes the place of professional judgment
   3. applies to specific industries
   4. should be updated after each audit
5. A tour of a company's premises:
   1. is not important, as the books and records suffice for the audit
   2. is not important, as the tour is time-consuming
   3. is important, as it provides additional information
   4. does not affect the audit results

Answers

1. d
2. c
3. c
4. a
5. c