Interview Test 11 Test 11 Welcome to AADVIKMS! Empowering Finance Careers Connect with top finance professionals and employers for exciting opportunities. Total Number of Questions: 40 Time: 40 Minutes All the best... Kind Regards CMA Madhuri Kashyap & CMA Sandeep Kumar - Founder - International Navodaya Chamber of Commerce Name Email Phone State 1. Which of the following best describes auditing? A systematic examination of records and financial statements An analysis of budget variances A strategy for managing expenses A method for preparing financial reports None 2. The primary objective of an audit is to: Detect fraud and errors Provide assurance on financial statements Prepare financial statements Control costs None 3. Which of the following is not a type of audit? Compliance audit Performance audit Legal audit Tax audit None 4. What is a statutory audit? A mandatory audit required by law An audit conducted by internal auditors A voluntary audit An audit focusing only on tax compliance None 5. The process of verifying whether financial statements comply with accounting standards is known as: Review Compliance audit Verification Assurance None 6. What is audit evidence? All information used by the auditor to arrive at conclusions -Information provided by management Financial data only Data related to tax compliance None 7. Which type of opinion is issued when financial statements are free from material misstatement? Qualified opinion Adverse opinion Unqualified opinion Disclaimer of opinion None 8. A qualified opinion is issued when: Financial statements are misleading There is a material misstatement, but it is not pervasive There is no material misstatement The audit cannot be completed None 9. Which of the following is not considered an internal control? Segregation of duties Proper authorization of transactions External audits Reconciliation of accounts None 10. What is vouching? Examining documents to verify authenticity Preparing financial statements Conducting tax audits Auditing internal controls None 11. Which of these best describes an adverse opinion? No issues with the financial statements Financial statements are materially misstated and misleading The auditor could not complete the audit There is a minor misstatement None 12. The term "audit trail" refers to: Evidence collected by the auditor The chronological sequence of transactions Financial statement preparation Legal compliance documents None 13. Which standard governs the internal audit function? SA 500 SA 600 SA 610 SA 620 None 14. The primary responsibility for preparing financial statements lies with: Auditor Management Shareholders Internal auditor None 15. The materiality concept in auditing refers to: Significant financial items affecting decision-making Accurate financial reporting Internal control importance Statutory compliance None 16. Which audit approach focuses on examining key risks? Risk-based audit Statutory audit Compliance audit Tax audit None 17. SA 700 deals with: Audit planning Forming an opinion and reporting on financial statements Conducting an internal audit Preparing management reports None 18. What is the main purpose of audit sampling? To reduce audit costs To evaluate a portion of data to infer the quality of the whole To check for fraud To review all transactions None 19. An external auditor's responsibility is primarily to: The company’s management Shareholders and external users Internal audit department Tax authorities None 20. When an auditor examines financial transactions for authenticity, it is called: Verification Vouching Reconciliation Inspection None 21. The term "going concern" refers to: A company’s ability to continue operating in the foreseeable future Company liquidation Tax compliance Restructuring None 22. SA 240 specifically addresses: Responsibilities of auditors for fraud detection Internal control systems Compliance with tax regulations Financial reporting standards None 23. Which of the following is not an audit procedure? Inquiry Observation Verification Execution None 24. Audit planning is governed by: SA 300 SA 700 SA 520 SA 600 None 25. When auditors are unable to form an opinion, they issue: Qualified opinion Adverse opinion Disclaimer of opinion Unqualified opinion None 26. What is analytical review? Evaluating financial information through analysis Preparing reports Conducting compliance tests Testing internal controls None 27. Audit documentation refers to: Working papers supporting the audit report Financial statements Management reports Tax documents None 28. SA 530 deals with: Audit sampling Financial reporting Tax compliance Internal control evaluation None 29. A compliance audit focuses on: Financial statement accuracy Adherence to regulatory requirements Evaluating management performance Testing risk management None 30. SA 600 covers: Audit of group financial statements Internal control systems Tax compliance Going concern assessment None 31. What is substantive testing? Testing transactions to identify material misstatements Assessing internal controls Evaluating audit sampling Conducting compliance reviews None 32. Which is not an element of audit risk? Inherent risk Detection risk Control risk Equity risk None 33. Which standard covers "Written Representations"? SA 580 SA 510 SA 600 SA 520 None 34. Which of the following is a substantive procedure? Test of controls Vouching of income and expenses Inventory count None of the above None 35. An audit report with significant uncertainties affecting financial statements may include: Emphasis of matter paragraph Disclaimer Qualified opinion Adverse opinion None 36. Who issues auditing standards in India? SEBI ICAI RBI Ministry of Finance None 37. Which audit procedure tests the existence of assets? Confirmation Analytical review Vouching Observation None 38. An internal control system should primarily ensure: Accurate reporting Detection of fraud All of the above Compliance with laws None 39. Verification is concerned with: Examining accuracy of accounts Checking existence, ownership, and valuation of assets Review of internal control Detecting fraud None 40. Which standard covers "Written Representations"? SA 580 SA 510 SA 600 SA 520 None Thank you for participating in our test series! We hope it boosted your knowledge and prepared you well for finance job interviews. Keep leveraging what you've learned to build confidence and excel. 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