Tests of controls Audit MCQs

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Tests of control should be seen within the context of Risks, Control objectives, Controls and Tests of those controls
Tests of controls MCQs

Tests of controls

Tests of control should be seen within the context of Risks, Control objectives, Controls and Tests of those controls. Here on MCQs.club we have prepared easy Multiple-Choice Questions (MCQs) on Tests of controls that cover MCQs on test of controls vs substantive tests, examples of tests of controls, audit sampling methods for tests of controls. These MCQ on Tests of controls are useful for Professional accountancy exams, Business management exams and Competitive exams.

  1. The auditor takes a systems-based approach wherever possible. If the systems and the controls are satisfactory, the figures produced by the systems should be reliable. What conditions are necessary before the auditor can adopt a systems-based approach?
    1. The systems and controls in place should be designed to minimise the risks of misstatements.
    2. The systems and controls should actually operate effectively. The auditor gains evidence that the controls operate in practice by performing tests of control.
    3. Both A&B
    4. None
  1. Where systems are IT based, specialised techniques of obtaining audit evidence may be required. These are known as computer-assisted audit techniques (CAATs).
    1. True
    2. False
  1. Which of the following statement is correct?
    1. CAATs are often necessary in the audit of IT systems because these systems may not provide an adequate audit trail.
    2. The auditor needs to „get inside the computer‟ to check the completeness and accuracy of the processing. CAATs allow the auditor to achieve this.
    3. Both A&B
    4. None
  1. Commonly-used types of CAATs are:
    1. audit software
    2. test data (which is of most relevance to tests of control)
    3. Both A&B
    4. None
  1. The costs (disadvantages) related to the use of CAATs may include:
    1. purchasing or developing the programs
    2. keeping programs up-to-date for changes in hardware and software
    3. training audit staff in the use of computer systems to run the CAATs. CAATs are of no value unless auditors are properly trained in how to use them.
    4. All of the above
  1. Tests of control should be seen within the context of:
    1. Risks
    2. Control objectives
    3. Controls and Tests of those controls.
    4. All of the above

Sales system

  1. The objectives of controls in the sales system are to ensure that:
    1. All orders are processed.
    2. All orders are despatched.
    3. Invoices are raised accurately.
    4. Revenue is recorded in the period to which it relates.
    5. All of the above
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