Mega file of ACC311 Quiz
During audit of the financial statements, the auditors are concerned with the verification and determination of which one of the following items?
Statements, accuracy, and feasibility
Date, accuracy, and reliability
Policies, value, and reliability
Cycle, policies, and reliability
Which one of the following authorities shall fix the remuneration of the auditors, if auditors are appointed by the SECP? (Companies Ordinance, 1984)?
Directors
Shareholders
Company registrar
SECP
Statements, accuracy, and feasibility
Date, accuracy, and reliability
Policies, value, and reliability
Cycle, policies, and reliability
Which one of the following authorities shall fix the remuneration of the auditors, if auditors are appointed by the SECP? (Companies Ordinance, 1984)?
Directors
Shareholders
Company registrar
SECP
The phrase (Scope of an Audit) refers to which one of the followings?
Engagement letters
Audit procedures
Audit evidence
Reasonable assurance
Engagement letters
Audit procedures
Audit evidence
Reasonable assurance
Following statements are true about the legal requirements of books accounts for the companies EXCEPT: (Companies Ordinance, 1984)
Books of accounts should be preserved for 10 years
Books of accounts are to be kept at the registered office of the company
Directors can review the books of account during the business hours
If a company fails to maintain books of accounts according, it may leads to demolish the entity
Books of accounts should be preserved for 10 years
Books of accounts are to be kept at the registered office of the company
Directors can review the books of account during the business hours
If a company fails to maintain books of accounts according, it may leads to demolish the entity
The factors that affect reasonable assurance include all of the following EXCEP:
Use of testing (Sampling)
Interest limitations of accounting and internal control
Remuneration of the auditor
Persuasive nature of audit evidence
Use of testing (Sampling)
Interest limitations of accounting and internal control
Remuneration of the auditor
Persuasive nature of audit evidence
A well designed Internal Control Questionnaire (ICQ) should incorporate the following EXCEPT:
Be a sufficient source of data for the evaluation of internal controls
Identity the internal control system's strengths and weaknesses
Be organized by individual functional organizations
Should include simple yes or no responses but no narrative responses
Be a sufficient source of data for the evaluation of internal controls
Identity the internal control system's strengths and weaknesses
Be organized by individual functional organizations
Should include simple yes or no responses but no narrative responses
Which one of the following is FALSE about Internal Control Evaluation Checklists (ICEC)?
ICEC is developed to overcome the shortcomings of Internal Control Questionnaire
The rules of constructing ICEC is different than construction of Internal Control Questionnaire
It is designed to determine, whether desirable internal controls are present
It is normally employed where system's information has already been recorded
ICEC is developed to overcome the shortcomings of Internal Control Questionnaire
The rules of constructing ICEC is different than construction of Internal Control Questionnaire
It is designed to determine, whether desirable internal controls are present
It is normally employed where system's information has already been recorded
An auditor's flow chart of an entity's information system is a diagrammatic representation. It depicts what kind of information?
Program for tests of control
Understanding of the system
Understanding of the types of irregularity that are probable given by the present system
Documentation of the study and evaluation of the system
Program for tests of control
Understanding of the system
Understanding of the types of irregularity that are probable given by the present system
Documentation of the study and evaluation of the system
Which one of the following is NOT a factor included in the control environment of an entity?
Integrity and ethical values
Risk assessment
Commitment to competence
Organization structure
Integrity and ethical values
Risk assessment
Commitment to competence
Organization structure
The audit which is a review of any part of an entity's operating procedures and methods is known as:
Financial statement audits
Operational audits
Technical Audits
Compliance audits
Financial statement audits
Operational audits
Technical Audits
Compliance audits
While considering internal control system of an entity, the auditor is basically concerned that the system provides reasonable assurance about which one of the following?
That the management can not override the system
Operational efficiency has been achieved according to management plans
Errors have been prevented or detected
Controls have not been circumvented by collusion
That the management can not override the system
Operational efficiency has been achieved according to management plans
Errors have been prevented or detected
Controls have not been circumvented by collusion
Which one of the following is the source document for staff salaries?
Approved payrolls
Vouchers
Accounting statements
Cash memos
Approved payrolls
Vouchers
Accounting statements
Cash memos
Analytical procedures used in planning an audit should focus on identifying which one of the followings?
Areas that may represent specific risks relevant to the audit
Material weaknesses in the internal control structure
The predictability of financial data form individual transactions
The various assertions that are embodied in the financial report
Areas that may represent specific risks relevant to the audit
Material weaknesses in the internal control structure
The predictability of financial data form individual transactions
The various assertions that are embodied in the financial report
Which one of the following meetings is considered as a 'meeting of directors or management?
General meeting
Extra ordinary general meeting
Board meeting
Management meeting
General meeting
Extra ordinary general meeting
Board meeting
Management meeting
Question No: 1 ( Marks: 1 ) - Please choose one
Which one of the following is an objective of the internal audit?
To report on financial statements
To check accounting system and internal control are operating efficiently
To determine the accuracy of financial statement values and disclosures
To establish a control system in the company
Which one of the following is an objective of the internal audit?
To report on financial statements
To check accounting system and internal control are operating efficiently
To determine the accuracy of financial statement values and disclosures
To establish a control system in the company
Question No: 2 ( Marks: 1 ) - Please choose one
Which one of the following statements is NOT correct in respect of the internal auditor?
The scope of audit performed by internal auditors is primarily in respect of financial report audits
An internal auditor does not require a license to practice
Internal auditors are usually employed by companies and government units
Primary responsibility of the internal auditor is to the board of directors
Which one of the following statements is NOT correct in respect of the internal auditor?
The scope of audit performed by internal auditors is primarily in respect of financial report audits
An internal auditor does not require a license to practice
Internal auditors are usually employed by companies and government units
Primary responsibility of the internal auditor is to the board of directors
Question No: 3 ( Marks: 1 ) - Please choose one
After how many days the Securities and Exchange Commission may appoint the auditors, if the Directors of a company could not appoint the auditors to fill casual vacancy? (Companies Ordinance, 1984)
30 days
60 days
80 days
120 days
After how many days the Securities and Exchange Commission may appoint the auditors, if the Directors of a company could not appoint the auditors to fill casual vacancy? (Companies Ordinance, 1984)
30 days
60 days
80 days
120 days
Question No: 4 ( Marks: 1 ) - Please choose one
Suppose that during audit of a company, an auditor accepted the schedule of bad debts furnished by the client, though it was apparent that debts were not recoverable. The auditor shall be held liable for which one of the following liabilities?
Liability for negligence
Liability for misfeasance
Criminal liability
Personal liability
Suppose that during audit of a company, an auditor accepted the schedule of bad debts furnished by the client, though it was apparent that debts were not recoverable. The auditor shall be held liable for which one of the following liabilities?
Liability for negligence
Liability for misfeasance
Criminal liability
Personal liability
Ref: Page no.19
Question No: 5 ( Marks: 1 ) - Please choose one
The books of accounts of a company should be kept at which one of the following offices?(Companies Ordinance, 1984)
Registered office of the company
Accounts office of the company
Record office of the company
Registrar office
The books of accounts of a company should be kept at which one of the following offices?(Companies Ordinance, 1984)
Registered office of the company
Accounts office of the company
Record office of the company
Registrar office
Question No: 6 ( Marks: 1 ) - Please choose one
Which of the following is one of the most fundamental and effective internal controls?
Increased use of computers for recording accounting transactions
Increased reliance on internal auditors to monitor accounting systems
Segregation of incompatible duties across several people
Having internal auditors report only to the Board of Directors
Question No: 7 ( Marks: 1 ) - Please choose one
Which of the following is NOT a major component of an internal control system?
Risk assessment Staffing
Control procedures/activities
Information and communication system
Which of the following is NOT a major component of an internal control system?
Risk assessment Staffing
Control procedures/activities
Information and communication system
Question No: 8 ( Marks: 1 ) - Please choose one
An audit firm audited a Leather Manufacturing company and presented its report addressed to the management. They found significant material misstatements in the company s internal controls system. They strongly recommended that there should be sufficient controls in existence to ensure management can effectively control the business operations. In your opinion, auditors are emphasizing on which one of the following categories of SOAP MAPS?
Authorization
Management and Monitoring
Arithmetic and Accounting
Segregation of duties
Authorization
Management and Monitoring
Arithmetic and Accounting
Segregation of duties
Question No: 9 ( Marks: 1 ) - Please choose one
Which of the following statements best describes the purpose of an internal control questionnaire (ICQ)?
An internal control questionnaire is a series of questions regarding accounting and control policies and procedures that the auditor considers necessary to prevent all misstatements in the financial report.
An internal control questionnaire is a series of questions regarding accounting and control policies and procedures that the auditor considers necessary to prevent material misstatements in the financial report.
An internal control questionnaire is a series of questions regarding accounting and control policies and procedures that the auditor considers necessary to detect material misstatements in the financial report.
An internal control questionnaire is a series of questions prepared by the entity about the entity's accounting and control policies and procedures for which the entity seeks guidance on from the auditor in order to detect material misstatements in the financial report.
Question No: 10 ( Marks: 1 ) - Please choose one
A Beverages company is being audited by an audit firm. Audit procedures are being undertaken in all of its departments. During this, the audit team has to spend more time on physical examination of the company assets to get reliable audit evidence. In your opinion, auditors are considering which type of audit inquiry in this case?
Recalculations Inspection of tangible assets Analytical procedures Confirmations
Existence of any immaterial mistake in the statements
Existence of any fraud or error in the statements
Company s growth trend in the future in figures Market value of the company s stock
Question No: 11 ( Marks: 1 ) - Please choose one
Which one of the following matters should be included in the letter of representation?
Existence of any immaterial mistake in the statements
Existence of any fraud or error in the statements
Company s growth trend in the future in figures
Market value of the company s stock
Which one of the following matters should be included in the letter of representation?
Existence of any immaterial mistake in the statements
Existence of any fraud or error in the statements
Company s growth trend in the future in figures
Market value of the company s stock
Question No: 12 ( Marks: 1 ) - Please choose one
Which one of the following may NOT be a type of control of the purchase cycle of an entity?
Receipt of goods
Invoicing and returns
Invoicing and credit notes
Purchase ledger and suppliers
Ref : Page no.93
Question No: 13 ( Marks: 1 ) - Please choose one
While testing the purchase system of an entity, which one of the following control tests may be applied to the Credit Notes by the auditors?
Evidence of matching credit notes to goods returned notes
Evidence of approval of credit notes
Evidence of a sequence check
Proof of issuance date
While testing the purchase system of an entity, which one of the following control tests may be applied to the Credit Notes by the auditors?
Evidence of matching credit notes to goods returned notes
Evidence of approval of credit notes
Evidence of a sequence check
Proof of issuance date
Question No: 14 ( Marks: 1 ) - Please choose one
During the audit work of testing the purchase system of an entity, which one of the following control tests may be applied to the Payables Ledger by the auditors?
Evidence of authorization of adjustments to payables ledger
Evidence of review of reconciliation of purchase ledger listing
Evidence of authorization of adjustments to payable ledger control account
Evidence of authorization of adjustments to purchase ledger
During the audit work of testing the purchase system of an entity, which one of the following control tests may be applied to the Payables Ledger by the auditors?
Evidence of authorization of adjustments to payables ledger
Evidence of review of reconciliation of purchase ledger listing
Evidence of authorization of adjustments to payable ledger control account
Evidence of authorization of adjustments to purchase ledger
Ref: Page no.93
Question No: 15 (Marks: 1) - Please choose one
Which one of the following possible misstatements related to payroll does not involve the audit objective of Validity?
Payments to fictitious employees
Payments to terminated employees
Payments to valid employees who have not worked
Payments to valid employees at a rate in excess of the authorized amount
Which one of the following possible misstatements related to payroll does not involve the audit objective of Validity?
Payments to fictitious employees
Payments to terminated employees
Payments to valid employees who have not worked
Payments to valid employees at a rate in excess of the authorized amount
Question No: 16 ( Marks: 1 ) - Please choose one
In order to ensure effective control, how often a full inventory count should be held when perpetual inventory records are not kept adequately?
On a daily basis
At least once a year
At least monthly
At least weekly
Ref: Page no.101
Question No: 17 (Marks: 1 ) - Please choose one
An oil exploring company employs 1500 personal in its international market. All of its personnel are paid on monthly basis. The company should compensate them in which form of payment?
Salary
Cheque
Wages
None of the given option
An oil exploring company employs 1500 personal in its international market. All of its personnel are paid on monthly basis. The company should compensate them in which form of payment?
Salary
Cheque
Wages
None of the given option
Question No: 18 ( Marks: 1 ) - Please choose one
For the purpose of keeping effective control in the cash system, who should have no access to the cash or the preparation of the paying-in slip?
Sales ledger personnel
Teller/cashier
Cash officers
Operations manager
Ref: Page no.99
Question No: 19 ( Marks: 1 ) - Please choose one
When should the petty cash book entries be made?
At the day end
Next day
Promptly
Monthly
When should the petty cash book entries be made?
At the day end
Next day
Promptly
Monthly
Question No: 20 ( Marks: 1 ) - Please choose one
How often the physical inspection of non current assets should be carried out?
Rarely
Periodically
Never
Daily
How often the physical inspection of non current assets should be carried out?
Rarely
Periodically
Never
Daily
Question No: 21 ( Marks: 1 ) - Please choose one
In which one of the following ways auditors can choice the verification techniques in a given set of circumstances?
It depends upon the available audit evidence to the auditor
It depends upon the nature of business operations of the entity
It depends upon the audit procedures planned by the auditor
It depends upon the judgmental skills of the auditor
In which one of the following ways auditors can choice the verification techniques in a given set of circumstances?
It depends upon the available audit evidence to the auditor
It depends upon the nature of business operations of the entity
It depends upon the audit procedures planned by the auditor
It depends upon the judgmental skills of the auditor
Question No: 22 ( Marks: 1 ) - Please choose one
Which one of the following may NOT ensure that the movement in share capital of a company is properly authorized and correctly shown and described in accordance with the Companies Ordinance, 1984?
Check that directors were authorized to allot shares
Agree authorized capital with memorandum of association
Consider special rules for allotments of public company shares
Test payments with supporting evidence and trace entries in register
Which one of the following may NOT ensure that the movement in share capital of a company is properly authorized and correctly shown and described in accordance with the Companies Ordinance, 1984?
Check that directors were authorized to allot shares
Agree authorized capital with memorandum of association
Consider special rules for allotments of public company shares
Test payments with supporting evidence and trace entries in register
Question No: 23 ( Marks: 1 ) - Please choose one
Which one of the following testing objectives refers to the management assertion Occurrence in obtaining audit evidence?
Assets shown include all rights under the control of the enterprise
Transactions and events that have been recorded have occurred and pertain to the entity
The amounts at which assets and liabilities are stated is correct
Assets and liabilities included on the balance sheet actually exist
Which one of the following testing objectives refers to the management assertion Occurrence in obtaining audit evidence?
Assets shown include all rights under the control of the enterprise
Transactions and events that have been recorded have occurred and pertain to the entity
The amounts at which assets and liabilities are stated is correct
Assets and liabilities included on the balance sheet actually exist
Question No: 24 ( Marks: 1 ) - Please choose one
Which one of the following certain expense items may be verified in order to keep control of stock-in-trade and stores & spares?
Interest on short term loan
Accumulated depreciation on assets
Director’s fees
Wages and salaries
Which one of the following certain expense items may be verified in order to keep control of stock-in-trade and stores & spares?
Interest on short term loan
Accumulated depreciation on assets
Director’s fees
Wages and salaries
Question No: 25 ( Marks: 1 ) - Please choose one
Which one of the following is NOT an advantage of using statistical sampling?
It aids in the design of an efficient sample
It allows the auditor to measure the sufficiency of the evidential matter obtained
It allows the auditor to greatly reduce substantive testing
It provides means for mathematically measuring the degree of sampling risk
Which one of the following is NOT an advantage of using statistical sampling?
It aids in the design of an efficient sample
It allows the auditor to measure the sufficiency of the evidential matter obtained
It allows the auditor to greatly reduce substantive testing
It provides means for mathematically measuring the degree of sampling risk
Question No: 26 ( Marks: 1 ) - Please choose one
Which one of the following is an underlying feature of random-based selection of items?
Each stratum of the accounting population be given equal representation in the sample
All items in the accounting population be randomly ordered.
Every item in the population should have an opportunity to be selected
Every item must be systematically selected using replacement
Which one of the following is an underlying feature of random-based selection of items?
Each stratum of the accounting population be given equal representation in the sample
All items in the accounting population be randomly ordered.
Every item in the population should have an opportunity to be selected
Every item must be systematically selected using replacement
Question No: 27 ( Marks: 1 ) - Please choose one
Which one of the following matters is generally included in an auditor's engagement letter?
Management's responsibility for the entity's compliance with laws and regulations
The factors to be considered in setting preliminary judgments about materiality
Management's vicarious liability for illegal acts committed by its employees
The auditor's responsibility to search for significant internal control deficiencies
Which one of the following matters is generally included in an auditor's engagement letter?
Management's responsibility for the entity's compliance with laws and regulations
The factors to be considered in setting preliminary judgments about materiality
Management's vicarious liability for illegal acts committed by its employees
The auditor's responsibility to search for significant internal control deficiencies
Question No: 28 ( Marks: 1 ) - Please choose one
What should be the next step of an auditor after establishing the overall audit strategy of an entity?
To develop an audit plan
To define the scope of audit
To determine the focus of engagement team efforts
To determine the objectives of audit
What should be the next step of an auditor after establishing the overall audit strategy of an entity?
To develop an audit plan
To define the scope of audit
To determine the focus of engagement team efforts
To determine the objectives of audit
Question No: 29 ( Marks: 1 ) - Please choose one
The establishment of the overall audit strategy involves the following EXCEPT:
To determine the characteristics of the engagement
To ascertain the reporting objectives of the engagement
To consider the important factors i.e. materiality levels, higher risks of material
misstatement etc.
To guide the development of detailed business activities to occur in future
The establishment of the overall audit strategy involves the following EXCEPT:
To determine the characteristics of the engagement
To ascertain the reporting objectives of the engagement
To consider the important factors i.e. materiality levels, higher risks of material
misstatement etc.
To guide the development of detailed business activities to occur in future
Question No: 30 ( Marks: 1 ) - Please choose one
Which one of the following mainly affects the auditors opinion?
Agreement on accounting policies
Limitation on the scope of the auditors work
Dispute among the members of the company
Future prospects of the company s growth
Which one of the following mainly affects the auditors opinion?
Agreement on accounting policies
Limitation on the scope of the auditors work
Dispute among the members of the company
Future prospects of the company s growth
Question No: 31 ( Marks: 1 ) - Please choose one
Which one of the following matters does NOT affect Auditor s Opinion?
When there is a limitation on the scope of the auditor s work
When there is a disagreement with management regarding the accounting policies selected
When there is a disagreement with management regarding the method of applying accounting policies
When an auditor modify the auditor s report by adding a paragraph to highlight a material matter
Which one of the following matters does NOT affect Auditor s Opinion?
When there is a limitation on the scope of the auditor s work
When there is a disagreement with management regarding the accounting policies selected
When there is a disagreement with management regarding the method of applying accounting policies
When an auditor modify the auditor s report by adding a paragraph to highlight a material matter
Question No: 32 ( Marks: 1 ) - Please choose one
Tracing selected shipments to the sales journal to be sure that each one is included is a test of which of the following?
Accuracy
Classification
Completeness
Existence
Tracing selected shipments to the sales journal to be sure that each one is included is a test of which of the following?
Accuracy
Classification
Completeness
Existence
Question No: 33 ( Marks: 1 ) - Please choose one
Which one of the following best describes the term Input VAT?
Input VAT is charged on a firm when it makes its purchases
Input VAT is charged on a firm when it makes its investments
Input VAT is charged on a firm when it produces highly quality products
Input VAT is charged on a firm when it exports the products
Which one of the following best describes the term Input VAT?
Input VAT is charged on a firm when it makes its purchases
Input VAT is charged on a firm when it makes its investments
Input VAT is charged on a firm when it produces highly quality products
Input VAT is charged on a firm when it exports the products
Question No: 34 ( Marks: 1 ) - Please choose one
The duties of the wages staff should preferably be rotated during the year when the salary payment is made by which of the following systems?
By cheque
In cash
By demand draft
Direct transfer to employees bank account
The duties of the wages staff should preferably be rotated during the year when the salary payment is made by which of the following systems?
By cheque
In cash
By demand draft
Direct transfer to employees bank account
Question No: 35 ( Marks: 1 ) - Please choose one
Which of the following are the three audit objectives that are most important for cash, and that receive the greatest attention during the audit?
Existence, accuracy, and completeness
Existence, cutoff, and presentation
Accuracy, cutoff, and presentation & disclosure
Completeness, realizable value, and cutoff
Which of the following are the three audit objectives that are most important for cash, and that receive the greatest attention during the audit?
Existence, accuracy, and completeness
Existence, cutoff, and presentation
Accuracy, cutoff, and presentation & disclosure
Completeness, realizable value, and cutoff
Question No: 36 ( Marks: 1 ) - Please choose one
Which one of the following is most likely to indicate fraud?
Several overpayments are made for goods received from a supplier
The year end cash balance does not include cash in transit to the company at year-end
A check received after year end was inadvertently recorded as if received before year-end
A documented loan is sanctioned to an officer of the company
Which one of the following is most likely to indicate fraud?
Several overpayments are made for goods received from a supplier
The year end cash balance does not include cash in transit to the company at year-end
A check received after year end was inadvertently recorded as if received before year-end
A documented loan is sanctioned to an officer of the company
Question No: 37 ( Marks: 1 ) - Please choose one
When an auditor increases the assessed level of control risk because certain control activities were determined to be ineffective, which of the following would most likely be increased by the auditor?
Extent of tests of controls
Level of detection risk
Extent of tests of details
Level of inherent risk
When an auditor increases the assessed level of control risk because certain control activities were determined to be ineffective, which of the following would most likely be increased by the auditor?
Extent of tests of controls
Level of detection risk
Extent of tests of details
Level of inherent risk
Question No: 38 ( Marks: 1 ) - Please choose one
Which one of the following statements is TRUE regarding control procedures?
They are not required if the control environment is strong
They should generally be all manual
They should generally be all automated
They can be either manual or automated
Which one of the following statements is TRUE regarding control procedures?
They are not required if the control environment is strong
They should generally be all manual
They should generally be all automated
They can be either manual or automated
Question No: 39 ( Marks: 1 ) - Please choose one
Which one of the following statements does not apply to the Institute of Chartered Accountants of Pakistan (ICAP) in Pakistan?
An autonomous body incorporated under the Chartered Accountants Ordinance 1961
Regulatory body that formulates auditing standards in Pakistan
Its affairs are run by a council which is elected by its member (Chartered Accountants).
ICAP is a member of the International Federation of Accountants (IFAC)
Which one of the following statements does not apply to the Institute of Chartered Accountants of Pakistan (ICAP) in Pakistan?
An autonomous body incorporated under the Chartered Accountants Ordinance 1961
Regulatory body that formulates auditing standards in Pakistan
Its affairs are run by a council which is elected by its member (Chartered Accountants).
ICAP is a member of the International Federation of Accountants (IFAC)
Question No: 40 ( Marks: 1 ) - Please choose one
Which one of the following statements indicates a primary difference between an operational audit and a compliance audit?
Operational audit focuses on business efficiencies and effectiveness, while compliance audit focuses on whether laws and other requirements are being followed
Operational audit focuses on reliability of the financial statements, while compliance audit focuses on whether laws and other requirements are being followed
Operational audit focuses on business growth prospects, while a compliance audit focuses on reliability of the financial statements
Operational audit focuses on business size and potential to grow, while compliance audit focuses on reliability of accounting records
Question No: 41 ( Marks: 1 ) - Please choose one
Which one of the following primary assertions is satisfied when an auditor ensures that there is no false transaction recorded and all recorded transactions have actually taken place?
Occurrence
Completeness
Existence
Rights and obligations
Question No: 42 ( Marks: 1 ) - Please choose one
Following are the points considered during the verification of bank balances EXCEPT:
Obtain direct bank confirmation
Investigate about outstanding stale cheques
Investigate any significant reconciling items of an unusual nature
Ensure that the creditors have been paid for their loan amount
Following are the points considered during the verification of bank balances EXCEPT:
Obtain direct bank confirmation
Investigate about outstanding stale cheques
Investigate any significant reconciling items of an unusual nature
Ensure that the creditors have been paid for their loan amount
1. Standard format of Auditor’s Report as per the Companies Ordinance 1984 is described in which one of the following Legal Forms?
A. Form31A
B. Form32A
C. Form30A
D. Form35A
A. Form31A
B. Form32A
C. Form30A
D. Form35A
http://www.vuzs.net/
2. IFRS stands for which one of the following?
A. International Financial Reporting Standards
B. International Financial Recording Systems
C. International Financial Recording Statements
D. International Financial Reporting Systems
A. International Financial Reporting Standards
B. International Financial Recording Systems
C. International Financial Recording Statements
D. International Financial Reporting Systems
.
2. Which of the following is NOT one of the five major components of internal control?
A. Risk assessment
B. Control activities
C. Information and communication system
D. Human resource background checks
Human resource background checks.
A. Risk assessment
B. Control activities
C. Information and communication system
D. Human resource background checks
Human resource background checks.
4. All of the following should be observed and inspected by the auditors during the risk assessment process of an entity EXCEPT:
A. Observations of Activities and operations
B. Inspection of Documents and records
C. Reading Management reports
D. Visit to other companies in the industry
Visit to other companies in the industry.
A. Observations of Activities and operations
B. Inspection of Documents and records
C. Reading Management reports
D. Visit to other companies in the industry
Visit to other companies in the industry.
5. Which one of the following audit techniques ordinarily provides an auditor with the least assurance about the operating effectiveness of an internal control activity?
A. Inquiry of client personnel
B. Inspection of documents and reports
C. Observation of client personnel
D. Preparation of system flowcharts
Inspection of documents and reports.
A. Inquiry of client personnel
B. Inspection of documents and reports
C. Observation of client personnel
D. Preparation of system flowcharts
Inspection of documents and reports.
6. Which one of the following opinions advocates that the auditor should form an opinion only after obtaining sufficient audit evidence instead of blindly accepting any information given by the management?
A. Auditor’s liability
B. Professional ethics
C. Professional Skepticism
D. Auditor’s opinion
Professional ethics.
A. Auditor’s liability
B. Professional ethics
C. Professional Skepticism
D. Auditor’s opinion
Professional ethics.
7. Which one of the following is NOT required as part of the audit process?
A. Substantive procedures
B. Tests of control
C. Assessment of materiality
D. Procedures to obtain an understanding of the internal control structure
Procedures to obtain an understanding of the internal control structure.
A. Substantive procedures
B. Tests of control
C. Assessment of materiality
D. Procedures to obtain an understanding of the internal control structure
Procedures to obtain an understanding of the internal control structure.
8. SECP stands for which one of the following?
A. Securities and Exchange Collaboration of Pakistan
B. Securities and Exchange Consortium of Pakistan
C. Securities and Exchange Commission of Pakistan
D. Securities and Exchange Constitution of Pakistan
A. Securities and Exchange Collaboration of Pakistan
B. Securities and Exchange Consortium of Pakistan
C. Securities and Exchange Commission of Pakistan
D. Securities and Exchange Constitution of Pakistan
9. One type of analytical procedure is the ‘Trend Analysis’. Which one of the following is the best example of trend analysis?
A. Comparison of company financial ratios to that of its competitors
B. Comparison of accounting records to budgeted amounts
C. Comparison of inventory levels over the past 3 years
D. Comparison of interest expenses to outstanding loan balances
Comparison of inventory levels over the past 3 years.
A. Comparison of company financial ratios to that of its competitors
B. Comparison of accounting records to budgeted amounts
C. Comparison of inventory levels over the past 3 years
D. Comparison of interest expenses to outstanding loan balances
Comparison of inventory levels over the past 3 years.
10. While conducting operational audit, which one of the following auditing procedures does the auditor primarily rely upon?
A. Inquiry and observation
B. Analytical procedures
C. Physical inspection
D. Tracing and vouching
Analytical procedures.
A. Inquiry and observation
B. Analytical procedures
C. Physical inspection
D. Tracing and vouching
Analytical procedures.
11. Which one of the following helps to achieve reasonable assurance about the fairness of financial statements during an audit process?
A. Audit report
B. Audit evidence
C. Audit engagement
D. Audit program
Audit report.
A. Audit report
B. Audit evidence
C. Audit engagement
D. Audit program
Audit report.
For better assessing the audit risk, auditor inquires different groups in the organizations EXCEPT:
Board of governance and top level management
Legal counsel
Middle level management
Stakeholders
Board of governance and top level management
Legal counsel
Middle level management
Stakeholders
Internal sources of audit evidence for an entity includes the following EXCEPT:
Associated companies of the entity
Accounting systems, records and documents
Non-financial data and records
Management representation and discussion
Associated companies of the entity
Accounting systems, records and documents
Non-financial data and records
Management representation and discussion
Associated company is not internal source.
An “Associated Company” is an entity in which the Company has significant influence, but not a controlling interest, over the operating and financial management policy decisions of the entity. Associated Companies are accounted for using the equity method. Significant influence is generally presumed when the Company holds between 20 percent and 50 percent of the voting rights.
Which of the following is the least concern to an auditor regarding the client’s internal control system?
Efficiency and effectiveness of operations
Controls related to the reliability of financial reporting
Controls over classes of transactions
Auditors are equally concern with each of the given issues
Reference
During test of control procedure its design can easily tested with the help of:
ICQs and walk through tests
ICQs and judgment sample
ICQs and random sample
ICQS and ICEC
Efficiency and effectiveness of operations
Controls related to the reliability of financial reporting
Controls over classes of transactions
Auditors are equally concern with each of the given issues
Reference
During test of control procedure its design can easily tested with the help of:
ICQs and walk through tests
ICQs and judgment sample
ICQs and random sample
ICQS and ICEC
Lesson no.21 Handouts
Testing the Design:
– Proper design of internal control is tested through ICQs and ICEC.
– Proper design of internal control is tested through ICQs and ICEC.
Which of the following is TRUE?
The audit profession is unregulated
The audit profession is regulated by its own professional body
Outside bodies sometimes become involved in the regulation of audit profession
The audit profession is regulated only by the government
Auditing firms do not describe themselves as auditors. They describe themselves as Chartered Accountants.
In Pakistan auditing profession is allied with the Institute of Chartered Accountants of Pakistan (ICAP). It is an autonomous body incorporated under the Chartered Accountants Ordinance 1961.
ICAP is a regulatory body that enjoys a self regulatory status. Its affairs are run by a council which is elected by its member (Chartered Accountants).
In Pakistan auditing profession is allied with the Institute of Chartered Accountants of Pakistan (ICAP). It is an autonomous body incorporated under the Chartered Accountants Ordinance 1961.
ICAP is a regulatory body that enjoys a self regulatory status. Its affairs are run by a council which is elected by its member (Chartered Accountants).
The small audit firms provide the following services EXCEPT:
Liquidation and receivership work, fraud auditing
Financial management and system consultancy
Financial system planning and preparation
Tax management and statutory form filling
The small chartered accountant firms especially may spend more time on other services than on
auditing.
The other services may include:
a. Writing up books of accounts (Book keeping)
b. Balancing books of accounts (Extracting trial balance)
c. Preparing final accounts
d. Tax management
e. Statutory form filling
f. Financial consultancy
g. Management and system consultancy
h. Liquidation and receivership work
i. Investigations (Fraud audit)
auditing.
The other services may include:
a. Writing up books of accounts (Book keeping)
b. Balancing books of accounts (Extracting trial balance)
c. Preparing final accounts
d. Tax management
e. Statutory form filling
f. Financial consultancy
g. Management and system consultancy
h. Liquidation and receivership work
i. Investigations (Fraud audit)
Which of the following is not included in the category of cash?
Deposit with banks
Checks
Postdated checks
Money orders
Deposit with banks
Checks
Postdated checks
Money orders
Which of the following letter should be included in the letter of representation?
Existence of immaterial mistake in the statement
Existence of any fraud or any error in the statement
Company's growth trend in the future in figures
Market value of the company's stock
Lesson No.34
The contents of the letter of representation should not include routine matters, for example, that all fixed assets exist and are the property of the company or that stock is valued at the lower of cost and net realizable value.
The letter should include only matters which:
a. are material to the financial statements, and
b. the auditors cannot obtain independent corroborative evidence.
For measuring the quality of audit evidence auditors used the tool of appropriateness; in case if auditor wants to measure quantity of audit evidence which tools from the following should be adopted?
Relevance
Reliability
Sufficiency
Effectiveness
Lesson No. 22
Sufficient appropriate Audit Evidence
Sufficiency: The measure of quantity of audit evidence.
Appropriateness: The measure of quality i.e. relevance and reliability in providing support of detecting misstatements in account balance classes of transactions and disclosures and relevant assertions.
Which statement cannot be highlighted as a merit of audit process?
(a)It settles the dispute between management
(b)It helps the auditor to give more constructive advice top management
(c)Its help to restrict sole proprietor to by changing some fee
(d)It gives strength to the company for acquiring the finance
(b)It helps the auditor to give more constructive advice top management
(c)Its help to restrict sole proprietor to by changing some fee
(d)It gives strength to the company for acquiring the finance
When the cash sales should be recorded by the companies in order to achieve control objectives?
(a)Record the cash sales when purchase order is received from the customer
(b)Record the cash sales at the point they are made
(c)Record the cash sales after some period
(d)Record the cash sales weekly
(a)Record the cash sales when purchase order is received from the customer
(b)Record the cash sales at the point they are made
(c)Record the cash sales after some period
(d)Record the cash sales weekly
Controls over Cash Sales:
a) Cash sales should be recorded at the point the sale is made. Usually this is by means of a Cash Till or the use of cash sale invoices or receipts.
a) Cash sales should be recorded at the point the sale is made. Usually this is by means of a Cash Till or the use of cash sale invoices or receipts.
Auditors conduct auditing in accordance with :
(a)International Financial Reporting Standards
(b)Local pronouncements/Legislations
(c)Financial Accounting Standards Board
(d)All of the given options
True and fair presentation means that the financial statement are prepared and presented in accordance with the requirements of the applicable International Financial Reporting Standards (IFRS) and local pronouncements/legislations.
Which of the following primary assertions is satisfied when an auditor ensures that there are no unrecorded assets, liabilities, transactions or events or undisclosed items in the client s financial records?
(a)International Financial Reporting Standards
(b)Local pronouncements/Legislations
(c)Financial Accounting Standards Board
(d)All of the given options
True and fair presentation means that the financial statement are prepared and presented in accordance with the requirements of the applicable International Financial Reporting Standards (IFRS) and local pronouncements/legislations.
Which of the following primary assertions is satisfied when an auditor ensures that there are no unrecorded assets, liabilities, transactions or events or undisclosed items in the client s financial records?
(a) Valuation
(b)Completeness
(c)Existence
(d)Rights and obligations
(b)Completeness
(c)Existence
(d)Rights and obligations
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Question # 1 of 20 ( Start time: 10:41:36 PM )
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Books of account refer to which one of the followings?
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Question # 2 of 20 ( Start time: 10:42:47 PM )
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Which one of the following statements is true regarding control procedures?
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Question # 3 of 20 ( Start time: 10:43:23 PM )
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Which one of the following is generally considered as the weakest form of audit evidence?
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Question # 4 of 20 ( Start time: 10:44:54 PM )
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Who has the responsibility of establishing and maintaining an entity's internal control structure?
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Question # 5 of 20 ( Start time: 10:46:13 PM )
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John is responsible for custody of the finished goods in the warehouse. If his company wishes to maintain strong internal control, which one of the following responsibilities is mismatched with his primary job?
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Question # 6 of 20 ( Start time: 10:47:44 PM )
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Which of the following is one of the most fundamental and effective internal controls?
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Question # 7 of 20 ( Start time: 10:49:12 PM )
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Which one of the following titles is used by the auditors for recognizing themselves in a ‘team of audit professionals’?
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Question # 8 of 20 ( Start time: 10:50:08 PM )
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Which one of the following is TRUE about Narrative Notes?
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Question # 9 of 20 ( Start time: 10:51:21 PM )
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Following are the types of financial statements EXCEPT:
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Question # 10 of 20 ( Start time: 10:53:01 PM )
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Financial information is generated initially through which one of the following sources?
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Question # 11 of 20 ( Start time: 10:54:37 PM )
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Which one of the following is a diagrammatical representation of an accounting system?
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Question # 12 of 20 ( Start time: 10:55:55 PM )
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The phrase “Scope of an Audit” refers to which one of the followings?
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Question # 13 of 20 ( Start time: 10:57:22 PM )
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All of the following should be observed and inspected by the auditors during the risk assessment process of an entity EXCEPT:
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Question # 14 of 20 ( Start time: 10:58:42 PM )
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While considering internal control system of an entity, the auditor is basically concerned that the system provides reasonable assurance about which one of the following?
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Question # 15 of 20 ( Start time: 11:00:04 PM )
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Trend analysis and vertical analysis are two important examples of:
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Question # 16 of 20 ( Start time: 11:01:25 PM )
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The basic purpose of financial statements audit is to enable the auditor to:
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Question # 17 of 20 ( Start time: 11:02:54 PM )
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Which liability shall be imposed, if auditors fail to certify the receipts and payments accounts in the statutory report?
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Question # 18 of 20 ( Start time: 11:04:25 PM )
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Which one of the following conditions should be met in case of ‘Negligence’ under the Law of Tort?
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Question # 19 of 20 ( Start time: 11:05:58 PM )
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What do you understand by the settlement term 5/20, n/60:
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Question # 20 of 20 ( Start time: 11:08:06 PM )
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Which one of the following is NOT a factor included in the control environment of an entity?
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Question # 3 of 20 ( Start time: 08:56:33 PM )
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While performing a financial statement audit, auditors of the company would be least interested in which one of the following?
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The management is forced to adopt the Auditing process for avoiding the factors exists in financial statements EXCEPT?
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The quantifiable information for compliance audit is available through which one of the following records?
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Question # 6 of 20 ( Start time: 09:00:08 PM )
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An auditor is a person who involves in auditing process, a part from that auditor can also spend some time to perform other activities. Highlight the activities which can be performed by auditor EXCEPT:
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Question # 7 of 20 ( Start time: 09:01:23 PM )
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During audit process auditor is responsible to take care of:
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Question # 8 of 20 ( Start time: 09:02:45 PM )
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In Pakistan, the profession of auditing is allied with which one of the following institutions?
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Question # 9 of 20 ( Start time: 09:04:12 PM )
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Which one of the following is necessary to obtain for ICAP members in order to become eligible for doing audit of an entity?
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Question # 10 of 20 ( Start time: 09:04:29 PM )
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Which one of the following stages does not come in the audit process?
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Question # 11 of 20 ( Start time: 09:05:52 PM )
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Which one of the following is the most favorable type of audit report opinion for the client to receive?
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Question # 12 of 20 ( Start time: 09:07:03 PM )
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Which paragraph of the standard audit opinion states that the financial statements are the responsibility of the company's management?
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Question # 13 of 20 ( Start time: 09:08:32 PM )
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The auditor’s opinion is based upon which one of the following?
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Question # 14 of 20 ( Start time: 09:09:55 PM )
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Total Marks: 1
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IAPS stands for:
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Question # 15 of 20 ( Start time: 09:11:12 PM )
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Which one of the following opinions advocates that the auditor should form an opinion only after obtaining sufficient audit evidence instead of blindly accepting any information given by the management?
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Question # 16 of 20 ( Start time: 09:12:35 PM )
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Total Marks: 1
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Which one of the following titles is used by the auditors for recognizing themselves as a ‘team of audit professionals’?
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Select correct option:
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Question # 17 of 20 ( Start time: 09:13:59 PM )
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The factors that affect reasonable assurance include all of the following EXCEPT:
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Question # 18 of 20 ( Start time: 09:15:27 PM )
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Total Marks: 1
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Who has the responsibility of establishing and maintaining an entity's internal control structure?
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Select correct option:
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Question # 19 of 20 ( Start time: 09:16:57 PM )
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SECP stands for which one of the following?
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Question # 20 of 20 ( Start time: 09:18:23 PM )
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According to Companies Ordinance 1984, any casual vacancy shall be filled by which one of the following authorities? (Companies Ordinance, 1984)
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ACC311
Fundamental of auditing
Solved MCQz
Question:
Which one of the following persons is responsible for the preparation of Audit engagement later?
Which one of the following persons is responsible for the preparation of Audit engagement later?
Options:
Auditor
Client
Company registrar
Company secretary
Question:
Who is responsible for designing and preparing the financial statements?
Who is responsible for designing and preparing the financial statements?
Options:
Auditor
Management
Accountant
Company secretary
Question:
Which one of the following is the method of assessing the internal control system of an entity?
Which one of the following is the method of assessing the internal control system of an entity?
Options:
Audit procedures
Audit evidence
Compliance audit
Technical analysis
Question:
The purpose of engagement letter includes the following EXCEPT:
The purpose of engagement letter includes the following EXCEPT:
Options:
To defines the auditor responsibilities clearly
To minimize misunderstandings between the client and auditors
To educate the client
To help the auditor in preparing audit report
Question:
A manufacturing company wants to hire external auditors who examine the activities operations procedures and processes of each department of the company. The company follows the local and international laws rules ad regulations and also has set standards for the efficiency and effectiveness. The company shall have to provide the access of all kind of operational information that will be required to the auditors as audit evidences. Considering the above situation select the most suitable type of audit which the company should opt?
A manufacturing company wants to hire external auditors who examine the activities operations procedures and processes of each department of the company. The company follows the local and international laws rules ad regulations and also has set standards for the efficiency and effectiveness. The company shall have to provide the access of all kind of operational information that will be required to the auditors as audit evidences. Considering the above situation select the most suitable type of audit which the company should opt?
Options:
Compliance audit
Operational audit
Technology audit
Financial audit
Question:
Which one of the following is considered as the formal opinion or disclaimer thereof issued by an independent auditor as a result of audit or evaluation performed on a legal entity?
Which one of the following is considered as the formal opinion or disclaimer thereof issued by an independent auditor as a result of audit or evaluation performed on a legal entity?
Options:
Financial report
Financial statement
Director report
Auditor's report
Question:
Which of the following statements is true?
Which of the following statements is true?
Options:
The auditing profession is unregulated
The auditing profession is regulated only by its own professional body
Outside bodies sometimes become involved in the regulation of the audit profession
The auditing profession is regulated only by the government
Question:
Which one of the following primary assertions is satisfied when an auditor ensures that there are no unrecorded assets liabilities transactions or events or undisclosed items in the client financial records?
Which one of the following primary assertions is satisfied when an auditor ensures that there are no unrecorded assets liabilities transactions or events or undisclosed items in the client financial records?
Options:
Valuation
Completeness
Existence
Rights and obligations
Question:
Internal control is primarily established within a company to do which of the following? Options:
Internal control is primarily established within a company to do which of the following? Options:
To prevent fraud in the company affairs
To provide reasonable assurance that the company's objectives will be achieved
To catch all errors that may occur in the company
To aid in the effective auditing of the company
The following authorities can determine fixation of remuneration of auditors EXCEPT: (Companies Ordinance 1984)
Options:
Directors
Company secretary
Commission
Members
Question:
A leather goods manufacturing company has started its operations in year 2001. After five years of conducting successful business, it has become a listed company recently. Now the company is required to hire its first auditors but neither the directors nor the members could appoint the auditors during the past 4 months since the incorporation of the company. Select among the following authorities who can appoint the auditors in this situation? (Companies Ordinance 1984)
A leather goods manufacturing company has started its operations in year 2001. After five years of conducting successful business, it has become a listed company recently. Now the company is required to hire its first auditors but neither the directors nor the members could appoint the auditors during the past 4 months since the incorporation of the company. Select among the following authorities who can appoint the auditors in this situation? (Companies Ordinance 1984)
Options:
Company secretary
Company registrar
Commission
Institute of Chartered Accountants of Pakistan (ICAP)
Question:
A company has hired auditors who have performed the audit process in accordance with the auditing standards but they fail to present its report. According to the Company law 1984 the auditors shall be liable for which one of the following liabilities?
A company has hired auditors who have performed the audit process in accordance with the auditing standards but they fail to present its report. According to the Company law 1984 the auditors shall be liable for which one of the following liabilities?
Options:
Criminal liability
Liability for misfeasance
Liability for negligence
Accounting liability
Question:
DBMSes & Databa ses are same things.
DBMSes & Databa ses are same things.
Options: false true
Question:
Audit sampling conducted
Audit sampling conducted
Options:
On selected number of items
On Whole population
On specific no of items
All of the given options
Question:
Advantages of Audit Sampling
Advantages of Audit Sampling
Options:
Economical
Time Saving
More Practical
All of the given options
Question:
Which of the following is the component of audit risk?
Which of the following is the component of audit risk?
Options:
Inherent risk
Control risk
Detection risk
All of the given options
Question:
Which of the following is not needed to be verified at the time of verification of Equity? Options:
Which of the following is not needed to be verified at the time of verification of Equity? Options:
Share capital classification
Movement in share capital
Preliminary expenses are properly write off
Movements in reserves
Question:
Which of the following is needed to be verified at the time of verification of Account Balances?
Which of the following is needed to be verified at the time of verification of Account Balances?
Options:
Look over any significant reconciling items of an unusual nature
Inspect about outstanding stale cheques
Acquire direct bank confirmation
All of the given options
Question:
Tolerable error and sample size have
Tolerable error and sample size have
Options:
A direct relationship
An inverse relationship
No relation
None of the given options
Question:
Sample risk and sample size have
Sample risk and sample size have
Options:
A direct relationship
An inverse relationship
No relation
None of the given options
Question:
Where the auditor relies more on the system of internal control the circumstance warrant: Options:
Where the auditor relies more on the system of internal control the circumstance warrant: Options:
He spends more time on audit
Effectiveness of the audit is affected
Efficiency of the audit is affected
Reliability of the results of the tests is affected
Question:
The auditor should select sample in such a way that:
The auditor should select sample in such a way that:
Options:
All important items should be selected
All items containing misstatement should be selected
All items in the population are selected
All items in population have an opportunity of being selected
Question:
Stratification is a process of dividing a population into sub- populations which have Options:
Stratification is a process of dividing a population into sub- populations which have Options:
Heterogeneous characteristics
Nothing in common
Lot of sampling units
Homogeneous characteristics
Question:
Test of controls comprise of testing of all EXCEPT
Test of controls comprise of testing of all EXCEPT
Options:
Design
Implementation
Operating efficiency
Operating effectiveness
Question:
Analytical procedures are carried out for which one of the following purposes?
Analytical procedures are carried out for which one of the following purposes?
Options:
To reduce detection risk
To assess inherent risk
To reduce control risk
To determine detection risk
Question:
Nature of audit procedure refers to which one of the following desc ription?
Nature of audit procedure refers to which one of the following desc ription?
Options:
It refers to the purpose i.e. (tests of controls or substantive procedures) and their type that is inspections observation inquiry confirmation recalculation re-performances or analytical procedures
. It refers when audit procedures are to be performed or the period or date to which the audit evidence applies
. It refers to sample size or number of observations of a control activity (quantity of audit evidence)
. It refers to the nature of testing and their procedures that is designing structuring and compiling work to be done
Question:
The auditors are required to perform tests of controls when
The auditors are required to perform tests of controls when
Options:
The internal controls are operating inefficiently
Substantive procedures alone provide sufficient appropriate audit evidence at the assertion level.
Substantive procedures alone do not provide sufficient appropriate audit evidence at the assertion level.
Analytical procedures alone do not provide sufficient appropriate audit evidence at the assertion level.
Question:
Following descriptions are the examples of substantive testing EXCEPT:
Following descriptions are the examples of substantive testing EXCEPT:
Options:
Test of account balances to verify the correctness of the amounts
Verification that an operating system and/or applications are configured appropriately to the companies needs
Review of minutes of directors; meetings and inquiry
Use of statistical sampling to determine the accuracy of financial statement figures
Question:
How often the Bank reconciliations should be prepared?
How often the Bank reconciliations should be prepared?
Options:
Weekly
Monthly
Quarterly
Annually
Question:
How often Inventory levels should be checked against the inventory records in order to keep its control effectively?
How often Inventory levels should be checked against the inventory records in order to keep its control effectively?
Options:
Rarely
Periodically
Never
Daily
Question:
What auditors seek in the register of non current assets for each major group of assets? Options:
What auditors seek in the register of non current assets for each major group of assets? Options:
Details of each item its cost and residual value
Details of each item its cost and accumulated depreciation
Details of each item its cost and depreciation
Details of each item its cost and capital investment expected returns
Question:
Which one of the following may NOT consist of any verification methods?
Which one of the following may NOT consist of any verification methods?
Options:
Closing balance
Acquisitions
Disposals
Reconciliation
Question:
Which one of the following may not be any matter relevant to verification of assets? Options:
Which one of the following may not be any matter relevant to verification of assets? Options:
Taxation
Vouching
Insurance
The letter of representation
Question:
Which one of the following aspects of assets must be verified?
Which one of the following aspects of assets must be verified?
Options:
Cost and authorization
Value and existence
Beneficial investment
Presentation in the accounts
Question:
An Automobile Company hires auditors at the year end. Auditors are at the stage of verification and vouching of company financials. Before examining the equity section they develop general aspects concerning the owner equity. In your opinion which one of the following aspects may NOT be considered by the auditors during this assessment?
An Automobile Company hires auditors at the year end. Auditors are at the stage of verification and vouching of company financials. Before examining the equity section they develop general aspects concerning the owner equity. In your opinion which one of the following aspects may NOT be considered by the auditors during this assessment?
Options:
Share capital is properly classified and described in the accounts
Capital stock is enough to execute the company financial needs
Reserves are properly classified and presented
Movements in reserves are properly authorized
Question:
Non current assets manufactured or constructed by the company itself should reflect which types of costs in the costing records?
Non current assets manufactured or constructed by the company itself should reflect which types of costs in the costing records?
Options:
Direct costs plus relevant overhead but not include any profit
Direct costs plus relevant overhead and any profit earned on it
Indirect costs plus relevant overhead but not include any profit
Indirect costs plus relevant overhead and any profit earned on it
Question:
Which one of the following matters should be included in the letter of representation? Options:
Which one of the following matters should be included in the letter of representation? Options:
Existence of any immaterial mistake in the statements
Existence of any fraud or error in the statements
Company growth trend in the future in figures
Market value of the company stock
Question:
Who should prepare the annual capital expenditure budgets of the company in order to keep effective?
Who should prepare the annual capital expenditure budgets of the company in order to keep effective?
Options:
Someone directly responsible to the shareholders
Someone directly responsible for goods delivery to the customers
Someone directly responsible to the board of directors
Someone directly responsible to deal with the suppliers
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