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Supplementary objective test questions

CHAPTER 4 – CONTROLS

4.1 Which of the following statement/s is/are correct in relation to an external
audit?

1 The purpose of an audit is to enhance the degree of confidence of
the intended users in the financial statement

2 An audit provides reasonable assurance

A 1 only

B 2 only

C Both 1 and 2

D Neither 1 or 2

4.2 Which of the following is not one of the three parties in an external audit
engagement?

A Preparer

B Planner

C User

D Practitioner

4.3 What is the risk that the auditor comes to an incorrect opinion?

A Planning risk

B Engagement risk

C Materiality risk

D Audit risk

4.4 Which type of audit will look at the effectiveness of controls?

A Financial audit

B Operational audit

C Project audit

D None of the above

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