ACC311 Quiz NO :4 by VU Friends

MY TODAY  QUIZ NO. 4

Question # 1 of 20 ( Start time: 10:42:36 PM )     Total Marks: 1
Which one of the following best illustrates the concept of sampling risk?
Select correct option:
        A randomly chosen sample may not be representative of the population as a whole
    An auditor may select audit procedures that are not appropriate to achieve the specific objective
    The documents related to the chosen sample may not be available for inspection
    An auditor may fail to recognize deviations in the documents examined

Question # 2 of 20 ( Start time: 10:43:36 PM )     Total Marks: 1
Which one of the following testing objectives refers to the assertion “Completeness” in obtaining audit evidence?
Select correct option:
        All transactions and events that should be recorded have been recorded
    Transactions arising during the period are reflected in the period's financial statements
    The amounts at which assets and liabilities are stated is correct
    Assets and liabilities included on the balance sheet actually exist

Question # 3 of 20 ( Start time: 10:44:56 PM )     Total Marks: 1
In which one of the following ways reconciliation of closing balance is carried out for verification of Stores and Spares?
Select correct option:
    Opening balance - Purchases + Purchases Return - Cost of Sales
        Opening balance + Purchases -Purchases Return - Cost of Sales
    Opening balance + Purchases -Purchases Return + Cost of Sales
    Opening balance - Purchases -Purchases Return - Cost of Sales

Question # 4 of 20 ( Start time: 10:46:04 PM )     Total Marks: 1
Which one of the following may NOT consist of any asset verification methods?
Select correct option:
    Closing balance
        Acquisitions
    Disposals
    Reconciliation

Question # 5 of 20 ( Start time: 10:47:21 PM )     Total Marks: 1
Which one of the following is NOT the advantage of Judgmental Sampling?’
Select correct option:
    No special knowledge of statistics is required in this type
        It tends to cause uniform standards among different audit firms
    No time is spent on playing with mathematics
    This approach has been well understood and refined by the experience over years
    
Question # 6 of 20 ( Start time: 10:48:24 PM )     Total Marks: 1
Monetary unit sampling is not useful if the auditor is concerned with which one of the followings?
Select correct option:
    Understatements
    Overstatements
    Misstatements
        None of the above

Question # 7 of 20 ( Start time: 10:49:18 PM )     Total Marks: 1
Which one of the following substantive procedures may NOT be carried out in the verification of stock in trade?
Select correct option:
    Observe counting of inventory at the selected location
    Check final summary of stocks prepared from the stock count sheets
        Check that slow moving, damaged and obsolete inventories are combined
    Ensure that inventories are presented in accordance with the requirements of the law and IAS-2

Question # 8 of 20 ( Start time: 10:50:41 PM )     Total Marks: 1
Auditor has a duty to verify all the assets appearing on the balance sheet. Which aspects they must verify about the assets out of the followings stated?
Select correct option:
    Classification of assets
        Cost, authorization and value
    Nature of assets
    Depreciation of assets

Question # 9 of 20 ( Start time: 10:51:46 PM )     Total Marks: 1
In sampling, stratification is the process of dividing a population into sub-populations which have:
Select correct option:
    Heterogeneous chrematistics
    Nothing in common
    Lot of sampling units
        Homogenous characteristic

Question # 10 of 20 ( Start time: 10:52:13 PM )     Total Marks: 1
Letter of confirmation may include the following information EXCEPT:
Select correct option:
    Full title of account and balances thereon
    Accounts opened during the period
        Interest charged during the period
    Details of security and charges

Question # 11 of 20 ( Start time: 10:53:19 PM )     Total Marks: 1
Which one of the following is a common approach to increase the audit efficiency in sampling?
Select correct option:
    Selective testing
    Stratification
    Systematic selection
        Random selection

Question # 12 of 20 ( Start time: 10:53:55 PM )     Total Marks: 1
The letter of representation should be signed by which one of the following authorities?
Select correct option:
    Finance manager
    Chartered accountants
    Accounts manager
        Chief executive

Question # 13 of 20 ( Start time: 10:54:33 PM )     Total Marks: 1
Which of the following matters should be included in the letter of representation?
Select correct option:
        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 # 14 of 20 ( Start time: 10:55:32 PM )     Total Marks: 1
When auditor obtains management’s representation about the cost of an asset acquired, he should:
Select correct option:
    Accept it as final evidence
        Seek evidence of such cost which is ordinarily available
    Disclose the fact of having received management’s representation in the financial statements
    Disclose the fact of having received the management’s representation in his report

Question # 15 of 20 ( Start time: 10:56:38 PM )     Total Marks: 1
How often the physical inspection of non current assets should be carried out?
Select correct option:
    Rarely
        Periodically
    Never
    Everyday

Question # 16 of 20 ( Start time: 10:57:01 PM )     Total Marks: 1
Which one of the following best describes the purpose of letter of confirmation from the bank?
Select correct option:
        To confirm the bank balances and other matters to the auditor directly
    To check the bank balances in order to ensure the financial health of the company
    To check the bank balances in order to finally give true and fair view
    To confirm the bank balances and other matters before the audit process start in a company

Question # 17 of 20 ( Start time: 10:57:52 PM )     Total Marks: 1
When the auditor ensures that inventories are presented in accordance with the requirements of the law and International Auditing Standards -2 (IAS-2), it refers to which one of the following?
Select correct option:
        Substantive procedures for verification of stock in trade
    Substantive procedures for verification of stores and spares
    Substantive procedures for verification of certain inventory expenses items
    Substantive procedures for verification of stocks of associated parties

Question # 18 of 20 ( Start time: 10:59:00 PM )     Total Marks: 1
Which one of the following best defines the term “stratification”?
Select correct option:
        A process of grouping data according to a common characteristic
    A process of collecting data according to a common characteristic
    A process of retrieving data according to a common characteristic
    A process of analyzing data according to a common characteristic

Question # 19 of 20 ( Start time: 11:00:27 PM )     Total Marks: 1
A building company constructs its own office block. How the company should identify this asset in the costing records?
Select correct option:
    Record the asset separately in costing records
    Record the asset in separately in liabilities
        Record the asset in capital investments
    Record the asset with intangible fixed assets

Question # 20 of 20 ( Start time: 11:01:36 PM )     Total Marks: 1
Which of the following points may NOT be considered during verification of debtors’ balances?
Select correct option:
        Obtain confirmation from creditors
    Check accuracy and completeness of debtors' listing
    Verify nature, amount and classification of credit balance
    Check credit note cut-off, if material

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