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Business English Exercises
 

Auditing

Answers to test questions and links to explanations

Home > Teaching Business English > Business English Lessons, Advanced Level # 71
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auditing answer 1
The purpose of an audit is to gather and evaluate evidence in order to form an opinion on the reliability of a company's financial statements.

Correct answer: (c) reliability

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auditing answer 2
The audit report is usually no more than a page in length and is attached to the financial statements.

Correct answer: (a) report

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 free online word games: noun game toeic preparation test Evaluation versus preparation
auditing answer 3
Auditors are not responsible for the preparation of the financial statements of an company.

Correct answer: (d) preparation

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auditing answer 4
In the financial statements, the company implicitly states that all items, account balances and transactions are materially valid, complete and accurate.

Correct answer: (c) materially

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auditing answer 5
An error in validity is committed when the financial statements include an item that should not be included.

Correct answer: (d) validity

Meaning of business term validity
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auditing answer 6
An error in completeness is committed when the financial statements do not include an item which should be included.

Correct answer: (c) completeness

Meaning of business term completeness
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auditing answer 7
An error in accuracy is committed when the financial statements include incorrect information about an item that should be included.

Correct answer: (a) accuracy

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auditing answer 8
One of the principal goals of the auditor is to add credibility to this assertion.

Correct answer: (b) credibility

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auditing answer 9
Audit risk is the risk that the auditor expresses an inappropriate audit opinion when the financial statements are significantly misstated.

Correct answer: (a) misstated

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auditing answer 10
In addition to the financial statements, the auditor also examines the company's internal control procedures for effectiveness.

Correct answer: (c) control

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