This is Auditing MCQs section with detailed explanations for preparation of screening tests, interviews for government jobs. In this section candidate will learn MCQs on variety of topics from the subject.
Minutes of meetings
Confirmations from debtors
Information gathered by auditor through observation
Worksheet supporting consolidated financial statements
See Answer
Added By: Ak Aamir
Answer
: Worksheet supporting consolidated financial statements
Explanation
: N/A
Risk of over reliance
Risk of incorrect rejection
Risk of incorrect acceptance
Both and C.
: Both A. and C.
Authenticated copy of relevant minutes of meetings may be regarded as management representation
It should always be in working
It may be dated prior to the report date
It should be addressed to the auditor
: It should always be in working
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
: The auditor concludes that the balance is materially misstated when in actual fact it not
The auditor has ascertained that the balance is materially correct when in actual fact it is not
The auditor concludes the balance is materially misstated when in actual fact is not
The auditor has rejected an item from sample which was not supported by documentary evidence
He applies random sampling on data which is inaccurate and inconsistent
: The auditor has ascertained that the balance is materially correct when in actual fact it is not
The reliability of audit evidence and its relevance in meeting the audit objective
The objectivity and integrity of the auditor
The quantity of audit evidence
The independence of the source of evidence
: The reliability of audit evidence and its relevance in meeting the audit objective
Cost of raising a loan
Cost of accessories of motor vehicles spent at the time of purchase
Expenses incurred for laying of sewers on land purchased
Insurance premium paid at the time of registration of the ship
: Cost of accessories of motor vehicles spent at the time of purchase
effluxion of time
use
obsolescence through technology be market changes
remarket expectation
: remarket expectation
Undervaluation of closing stock
Charging capital expenditure to revenue
Goods sent on consignment being shown as actual sales
Charging higher rates of depreciation on fixed assets than actually required
: Goods sent on consignment being shown as actual sales
Capital redemption reserve
Security premium account
Debenture redemption reserve
Capital reserve
: Debenture redemption reserve
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