FREE CGAP Auditing & Corporate Governance Questions and Answers

Question 1

The division of labor among employees so that, while a transaction is being carried out, recorded, and processed, the work of one employee is automatically inspected by another.

Accepted Answer

Internal check

Answer

Internal control

Answer

Vouching

Answer

Internal audit

Question 2

Internal auditing's goal is to

Accepted Answer

To detect frauds and errors

Answer

To prevent frauds and errors

Answer

Both (a) and (b)

Answer

Both (a) and (b)

Question 3

The process of looking at a document that backs up a recorded transaction to confirm the legitimacy and validity of that transaction

Accepted Answer

Vouching

Answer

Internal check

Answer

Auditing

Answer

Audit planning

Question 4

Which of the following does not apply to the vouching process for cash sales:

Accepted Answer

Examine balance sheet

Answer

Examine cash memos

Answer

Examine cash book

Answer

Examine the counterfoil of pay in slops

Question 5

Who is in charge of examining the assets?

Accepted Answer

Auditor

Answer

Director

Answer

Management

Answer

None of the above

Question 6

Which of the following items does the auditor not check when examining the liabilities?

Accepted Answer

All of the above

Answer

Completeness

Answer

Existence

Answer

Obligation

Question 7

When one clerk's work is automatically reviewed by another, it is referred as as

Accepted Answer

Internal check.

Answer

Internal audit.

Answer

Internal control.

Answer

None of the above.

Question 8

Which of the following doesn't qualify as an audit?

Accepted Answer

None of these.

Answer

Continuous, final, Interim, Cash, Cost and Management audit.

Answer

Statutory and private audit.

Answer

Government and continuous audit.

Question 9

The audit that a statute makes required is known as __________ .

Accepted Answer

Statutory audit.

Answer

Partial audit.

Answer

Continuous audit.

Answer

Complete audit.

Question 10

This type of audit is typically undertaken between two annual audits _______ .

Accepted Answer

Interim audit.

Answer

Continuous audit.

Answer

Final audit.

Answer

Internal audit.