MCQ On Auditing

Reviewed by Editorial Team
The ProProfs editorial team is comprised of experienced subject matter experts. They've collectively created over 10,000 quizzes and lessons, serving over 100 million users. Our team includes in-house content moderators and subject matter experts, as well as a global network of rigorously trained contributors. All adhere to our comprehensive editorial guidelines, ensuring the delivery of high-quality content.
Learn about Our Editorial Process
| By Shiningstars
S
Shiningstars
Community Contributor
Quizzes Created: 4 | Total Attempts: 3,097
| Attempts: 1,536
SettingsSettings
Please wait...
  • 1/10 Questions

    An audit is usually conducted in three steps:(1) A pre-examination or opening meeting with the auditee marks the beginning of the process.(2) involves a suitability audit of the documented procedures against the selected reference standard.(3) the auditor examines in depth the implementation of the quality system

    • True
    • False
Please wait...
About This Quiz

This MCQ quiz on Auditing covers various aspects of quality audits, including types, classifications, and comprehensive system audits. It assesses knowledge on audit processes, roles of involved parties, and reporting requirements, making it essential for learners in quality management and auditing.

MCQ On Auditing - Quiz

Quiz Preview

  • 2. 

    When the auditor is an employee of the organization being audited (auditee), the audit is classified as an ........ quality audit.

    • Internal

    • External

    • Compliance

    • Both A & B

    Correct Answer
    A. Internal
    Explanation
    When the auditor is an employee of the organization being audited, the audit is classified as an internal quality audit. This means that the audit is conducted by someone within the organization, rather than by an external party. Internal audits are typically performed to assess the effectiveness and efficiency of internal controls, identify areas for improvement, and ensure compliance with internal policies and procedures. They provide valuable insights and recommendations for the auditee to enhance their operations and achieve their objectives.

    Rate this question:

  • 3. 

    The time required and costs involved in an external audit are much higher as compared to internal audits.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    External audits are conducted by independent third-party auditors who are not affiliated with the organization being audited. These auditors charge fees for their services, which can be quite high due to their expertise and the thoroughness of their work. Additionally, external audits require more time as the auditors need to familiarize themselves with the organization's operations and financial records. On the other hand, internal audits are conducted by employees within the organization who are already familiar with its operations, resulting in lower costs and less time required. Therefore, it is true that the time required and costs involved in an external audit are much higher compared to internal audits.

    Rate this question:

  • 4. 

    Various types of quality audits are:

    • Product

    • Process

    • Management (system)

    • Registration (certification)

    • All of above

    Correct Answer
    A. All of above
    Explanation
    The correct answer is "All of above." This means that all of the mentioned types of quality audits, including product audits, process audits, management (system) audits, and registration (certification) audits, are included.

    Rate this question:

  • 5. 

    Each of the three parties involved in an audit ......................... plays a role that contributes to its success.

    • The client, the auditor, and the auditeer

    • The client, the auditor, and the audite

    • The client, the moderator, and the auditee

    • The client, the auditor, and the auditee

    Correct Answer
    A. The client, the auditor, and the auditee
    Explanation
    The correct answer is the client, the auditor, and the auditee. In an audit, the client is the organization being audited, the auditor is the independent professional conducting the audit, and the auditee is the individual or department within the client organization that is being audited. Each of these parties has a specific role and responsibility in the audit process, and their collaboration and cooperation are essential for the success of the audit. The client provides the necessary information and access to the auditor, the auditor conducts the audit and assesses the client's compliance or performance, and the auditee is responsible for addressing any findings or recommendations made by the auditor.

    Rate this question:

  • 6. 

    The most comprehensive type of audit is the ......... system audit, which examines suitability and effectiveness of the system as a whole.

    • Quantity

    • Quality

    • Preliminary

    • Sequential

    Correct Answer
    A. Quality
    Explanation
    A quality system audit is the most comprehensive type of audit as it evaluates the suitability and effectiveness of the system as a whole. This type of audit assesses various aspects such as processes, procedures, documentation, and overall performance to ensure that the system meets the required quality standards. By examining the quality of the system, this audit provides a thorough evaluation of its overall functionality and effectiveness.

    Rate this question:

  • 7. 

    Audit is a fact-finding process that compares actual results with 

    • Specified standards and plans

    • Expected results

    • Premature results

    • Preliminary results

    Correct Answer
    A. Specified standards and plans
    Explanation
    Audit is a process that involves comparing actual results with specified standards and plans. This means that during an audit, the objective is to verify whether the outcomes achieved align with the predetermined benchmarks and expectations. By examining the actual results against the specified standards and plans, auditors can identify any discrepancies or deviations that may exist. This comparison allows organizations to assess their performance, identify areas for improvement, and ensure compliance with established guidelines. Therefore, the correct answer is "specified standards and plans."

    Rate this question:

  • 8. 

    For the benefit of the organisation, quality auditing should only report non-conformances and corrective actions, but should not highlight areas of good practice.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Quality auditing should not only focus on identifying non-conformances and corrective actions, but also on highlighting areas of good practice within an organization. By acknowledging and promoting areas of good practice, the organization can further improve its overall quality management system and enhance its performance. This approach encourages continuous improvement and recognizes the efforts and achievements of the organization in maintaining high-quality standards. Therefore, the statement that quality auditing should not highlight areas of good practice is false.

    Rate this question:

  • 9. 

    The audit final report should include, at a minimum, the following:(choose the one NOT required)1. Type of audit conducted2. Characteristics of audit3. Identification of involved parties: auditor, auditee, and third party4. Audit team members5. Critical nonconformities and other observations6. Audit standards and reference documents used7. Determination of proper corrective action(s)8. Duration of audit

    • 1

    • 2

    • 4

    • 8

    Correct Answer
    A. 2
    Explanation
    The characteristics of the audit are not required to be included in the final report. The other options listed are all necessary components of the audit final report.

    Rate this question:

  • 10. 

    The ......... is also expected to provide the resources needed and select staff members to accompany the auditors.

    • Auditor

    • Client

    • Internal auditor

    • Auditee

    Correct Answer
    A. Auditee
    Explanation
    The auditee is expected to provide the resources needed and select staff members to accompany the auditors. The auditee is the entity or organization being audited, and they have the responsibility to cooperate with the auditors and facilitate the audit process. They are also responsible for ensuring that the necessary resources are available for the auditors to conduct their work effectively. Additionally, the auditee may choose to have their own internal auditors accompany the external auditors during the audit process.

    Rate this question:

Quiz Review Timeline (Updated): Mar 22, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 22, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • May 24, 2016
    Quiz Created by
    Shiningstars
Back to Top Back to top
Advertisement
×

Wait!
Here's an interesting quiz for you.

We have other quizzes matching your interest.