Scrutiny of Record for Audit Purpose MCQs

In order to vouch, which of the expenses, the auditor will examine bill of entry

custom

excise duties

sales tax

income tax

Author: rikazzz Comment

While observing a client’s annual physical inventory, an auditor conducted test counts for certain test counts were higher than the recorded quantities in the client’s perpetual records. This situation could be the result of the client’s failure to record

purchase returns

sales returns

goods with consignor

purchase discounts

Author: rikazzz Comment

Scrutiny of Record for Audit Purpose

While vouching wages, auditor should examine whether there is proper segregation of duties. Which of the following activities should not be done by same department

maintaining personnel records and approving changing in wages rates

proposing pay roll summary and disbursement of wages

making salary statements and filing tax returns

comparing time clock records with time reports prepared by supervisors and preparing List of workers employed along with the units of production for each one of them

Author: rikazzz Comment

Scrutiny of Record for Audit Purpose

Which of the following statement is not true regard to auditor’s attendance at stock taking

auditor should attend physical stock taking only if inventory is material

auditor may not attend physical verification of stock by management, if he does not find it Appropriate to rely on it

if inventory is material, even when the auditor is not placing reliance on the physical Verification by the management, he should attend it

the primary objective of an auditor’s observation of an entity’s observation of an entity’s Stock take is to obtain direct knowledge that the stock and has been property counted

Author: rikazzz Comment