Auditing Lesson 1: Introduction to Auditing
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Questions and Answers

What is the primary purpose of information system audits in tech companies?

  • To protect company servers and systems from hacking
  • To recommend software and equipment for specific business needs
  • To make sure private customer data is secure (correct)
  • To evaluate data processing technology

What type of audit is often conducted as part of a criminal or civil investigation?

  • Operational audit
  • Forensic audit (correct)
  • Financial audit
  • Compliance audit

What is the primary advantage of an audit to a partnership?

  • Minimization of disputes among partners in profit sharing
  • Receiving audited financial statements
  • Safeguarding of rights of the partners
  • A reasonable assurance to ensure that the financial statements are free from material misstatements (correct)

What is the primary advantage of an audit to shareholders?

<p>To have a reasonable assurance as to the financial statements are free of material misstatements (D)</p> Signup and view all the answers

What is the primary purpose of forensic auditors?

<p>To apply accounting knowledge and investigative procedures (B)</p> Signup and view all the answers

What is the outcome of a forensic audit?

<p>The results may be used as evidence in legal proceedings (B)</p> Signup and view all the answers

What is the primary purpose of an audit in terms of internal control?

<p>To strengthen the system of internal control and detection of error and frauds (A)</p> Signup and view all the answers

What is the primary advantage of an audit in terms of decision making?

<p>To arrive at a decision on extent of capital (Introduction/withdrawn) make easy (B)</p> Signup and view all the answers

What is the primary purpose of an audit in terms of financial statements?

<p>To receive audited financial statements (C)</p> Signup and view all the answers

What is the primary purpose of an audit in terms of partner rights?

<p>Safeguarding of rights of the partners (C)</p> Signup and view all the answers

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