National College of Business Administration & Economics

BUC Campus, Bahawalpur

Class:
5th Semester [MBA (Executive)]
Date: 24-04-2016
Subject:
Audit
Hassan Ali
Term:
Mid Term
Time Allowed: 15 Min
Name: _____________________

Instructor: Mr.
Max Marks:
Roll #

10
Total
____________

Section A
Objective
Multiple Choice Questions:

1. Which of the following is not one of the Five elements of an assurance engagement:
a) A written report in an appropriate form b) Suitable Criteria c) Three Party relationship d)
Sufficient, Appropriate Evidence
2. Which of the following is NOT one of the types of Assurance report:
a)
Positive Assurance b) Neutral Assurance c) Negative Assurance
3. Choose whether the following statement is true or false:
Assurance Engagement can relate only to financial Measures and results
a) True
b) False
4. Which of the following is the correct definition of Corporate Governance:
a) System by which companies are directed and controlled b) Part of the board is made
up of NEDs c) System by which Board of Directors are managed and controlled.
5. Which of the following is NOT one of the Fundamental ethical principle
a) Professional Behavior b) Objectivity c) Professional competence and due care d)
Honesty
6. Which of the following are threats to Independence and Objectivity as set out in
ethical code:
1) Self awareness

7.
a)
8.
a)

2) Self Interest

3) Familiarity

4) Self Review

a) 1,2,3,4 b) 2,3,4 c) 3,4 d) 1,4

If an Auditor perceives an ethical threat, then this threat must be
Reduced to an acceptably low level b) Completely Eliminated
Which of the following is not implied by an unqualified Audit report:
Proper records have been kept b) All necessary explanations have been received

National College of Business Administration & Economics

BUC Campus, Bahawalpur
c) Company is safe to invest in

d) Directors report is consistent with the Financial

statement
9. Materiality depends on
a) Only the size of error b) the size (quantitative factors) and type of errors (qualitative
errors)
10. Disclaimer of opinion is
a) When the auditor has sufficient and appropriate audit evidence
not have the sufficient and appropriate audit evidence

b) When the Auditor did

c) When the Auditor access is

restricted.

Class:
5th Semester [MBA (Executive)]
2016
Subject:
Audit
Mr. Hassan Ali
Term:
Mid Term
Name:

_____________________

Section B
Short questions
I)

Define Materiality?

II)

Define Performance Materiality?

(4*2)

Date: 24-04Instructor:
Max Marks:
15
Total Time Allowed: 45 min
Roll # ____________

National College of Business Administration & Economics

BUC Campus, Bahawalpur
III)

Name Five Fundamental Ethical Principles?

IV)

List two roles of Audit Committee?

Section C
Long Question

1. Explain Threats to Professional Ethics?

Marks: 7