Auditing MCQs - MCQtimes.com

inefficient concern

processing concern

trading concern

manufacturing concern

Author: rikazzz Comment

A cash budget for the six months ended 30 September 2013 shows an anticipated overdraft of approximately Rs. 9,500 which of the following would reduce the expected overdraft?

Allowing customers two month’s credit instead of one month’s credit in which to pay

Supplier’s purchases being made for cash, instead of one month’s credit

Assets being leased, rather than purchased for cash in 2013

Charging depreciation on fixed assets at 25% on the straight-line basis rather than 20%

Author: rikazzz Comment

Settlement of Audit Objections

Which of the following is not a corroborative evidence:

Minutes of meetings

Confirmations from debtors

Information gathered by auditor through observation

Worksheet supporting consolidated financial statements

Author: rikazzz Comment

Settlement of Audit Objections

For what minimum period should audit working papers be retained by audit firm:

For the time period the entity remains a client of the audit firm

For a period of ten years

For a period auditor opines them to be useful in servicing the client

For the period the audit firm is in existence

Author: rikazzz Comment

Settlement of Audit Objections

XYZ Ltd. Conducts quarterly review of operations. It discovers that unrest in a south east Asian country may affect the supply of raw materials to it the next quarter. This is an example of:

risk assessment

control procedure

supervision

control environment

Author: rikazzz Comment

Annual Budget

Which of the following is an example of functional budget?

Flexible budget

Master budget

Production budget

None of these

Author: rikazzz Comment

Annual Budget

An increase in income will:

Lead to a movement along the demand curve

Shift the supply curve

Shift the demand curve

Lead to an extension of demand

Author: rikazzz Comment

Advance Accounting and Auditing

Both the accounts for depreciation expense and accumulated depreciation.

Are closed at the end of the period

Appear in the adjusted trial balance

Appear in the trial balance columns

None of these

Author: rikazzz Comment

Scrutiny of Record for Audit Purpose

Which of the following assets is least likely to be subjected to lien

freehold land

plant and machinery

leasehold property

motor vehicles

Author: rikazzz Comment

Settlement of Audit Objections

What would most appropriately describe the risk of incorrect rejection in terms of substantive testing:

The auditor concludes balance is materially correct when in actual fact it is not

The auditor concludes that the balance is materially misstated when in actual fact it not

The auditor has rejected an item for sample which was material

None of the above

Author: rikazzz Comment