Correct Answer:
B. The auditor's procedures will fail to detect a material misstatement
Detection risk depends on the nature, timing and extent of the auditor's procedures, so the auditor can control it.
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
Detection risk is the risk that:
Related MCQs
Annual demand is 3,600 units, ordering cost is Rs. 100 per order and holding cost is Rs. 8 per unit per year. The EOQ is:
A.
300 units
B.
600 units
C.
450 units
D.
90 units
Correct answer is:
A. 300 units
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Who has primary responsibility for the prevention and detection of fraud?
A.
The external auditor only
B.
The shareholders only
C.
The tax authority
D.
Management and those charged with governance
Correct answer is:
D. Management and those charged with governance
Do you agree with this answer?
The normal balance of a revenue account is:
A.
Debit
B.
Zero
C.
Depends on the auditor
D.
Credit
Correct answer is:
D. Credit
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Excess expenditure over the grant approved by the legislature must be:
A.
Ignored
B.
Hidden in other accounts
C.
Regularized through an excess grant approved by the National Assembly
D.
Recovered from the Auditor-General
Correct answer is:
C. Regularized through an excess grant approved by the National Assembly
Do you agree with this answer?
The assertion 'rights and obligations' means that:
A.
All assets are physically present
B.
All sales are cash sales
C.
The entity holds or controls the rights to assets and liabilities are its obligations
D.
Management has the right to appoint the auditor
Correct answer is:
C. The entity holds or controls the rights to assets and liabilities are its obligations
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The Public Account of the Federation is used for:
A.
Paying salaries only
B.
Moneys received by the Government other than the Consolidated Fund, such as deposits and trust funds
C.
Voting on the budget
D.
Collecting customs duty
Correct answer is:
B. Moneys received by the Government other than the Consolidated Fund, such as deposits and trust funds
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