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Flashcards

Audit

cezaan Inglês 118 flashcards

Flashcards do conjunto (118)

  1. 1The main object of an audit is ___ a) Expression of opinion b) Detection and Prevention of fraud and error c) Both (a) and (b) d) Depends on the type of audit.d) Depends on the type of audit.
  2. 2The title of AAS2 issued by Council of ICAI is ___ a) Objective and Scope of the Financial Statements b) Objective and Scope of the Audit of Financial Statements c) Objective and Scope of Business of an Entity d) Objective and Scope of Financial Statements Auditb) Objective and Scope of the Audit of Financial Statements
  3. 3Which of the following is not true about opinion on financial statements? a) The auditor should express an opinion on financial statements. b) His opinion is no guarantee to future viability of business c) He is responsible for detection and prevention of frauds and errors in financial statements d) He should examine whether recognised accounting principle have been consistentlyc) He is responsible for detection and prevention of frauds and errors in financial statements
  4. 4A sale of Rs. 50.000 to A was entered as a sale to B. This is an example of _ a) Error of omission b) Error of commission c) Compensating error d) Error of principleb) Error of commission
  5. 5‘Goods sent on approval basis’ have been recorded as ‘Credit sales’. This is an example of _ a) Error of principle b) Error of commission c) Error of omission d) Error of duplicationa) Error of principle
  6. 6Which of the following statements is not true? a) Management fraud is more difficult to detect than employee fraud b) Internal control system reduces the possibility of occurrence of employee fraud and management fraud c) The auditor’s responsibility for detection and prevention of errors and frauds is similar. d) All statements are correct.b) Internal control system reduces the possibility of occurrence of employee fraud and management fraud
  7. 7As per AAS4 if auditor detects an error then – a) He should inform the management. b) He should communicate it to the management if it is material c) The auditor should ensure financial statements are adjusted for detected errors. d) Both (b) and (c)d) Both (b) and (c)
  8. 8Which of the following is not a limitation of audit as per AAS4? a) Objectivity of auditor’s judgment b) Selective testing c) Persuasiveness of evidence d) Limitations of internal control systema) Objectivity of auditor’s judgment
  9. 9How many principles are listed in AAS1 which govern auditor’s professional obligation? a) Nine b) Fourteen c) Seven d) Eighta) Nine
  10. 10Both auditing and accounting are concerned with financial statements. Which of the following a) Auditing uses the theory of evidence to verify the financial information made available by Accountancy b) Auditing lends credibility dimension and quality dimension to the financial statements prepared by the accountant. c) Auditor should have through knowledge of accounting concepts and convention to enable him to express an opinion on financial statements d) All of the aboveb) Auditing lends credibility dimension and quality dimension to the financial statements prepared by the accountant.
  11. 11The risk of management fraud increases in the presence of : a) Frequent changes in supplies b) Improved internal control system c) Substantial increases in sales d) Management incentive system based on sales done in a quarterd) Management incentive system based on sales done in a quarter
  12. 12Auditing standards differ from audit procedures in that procedures relate to a) Audit assumptions b) acts to be performed c) quality criterion d) methods of workb) acts to be performed
  13. 1313. Which of the following factors likely to be identified as a fraud factor by the auditor? a) The company is planning a initial public offer of quality shares to raise additional capital for expansion. b) Bank reconciliation statement includes depositsintransit. c) Plant and machinery is sold at a loss. d) The company has made political contributionsa) The company is planning a initial public offer of quality shares to raise additional capital for expansion.
  14. 14The most difficult type of misstatement to detect fraud is based on: a) Related party purchases b) Related party sales c) The restatement of sales d) Omission of a sales transaction from being recorded.d) Omission of a sales transaction from being recorded.
  15. 15Which of the following statements is correct concerning the required documentation in working papers of fraud risk assessment undertaken by the auditor? a) All risk factors as mentioned in AAS4, should be considered and documented along with response to them. b) Document the identification of fraud risk factors along with response to them. c) Document material fraud, risk factors and response to them. d) No documentation in required.b) Document the identification of fraud risk factors along with response to them.
  16. 16(1) Double entry book-keeping was fathered by: (a) F.W.Taylor (b) Henry Fayol (c) Lucas Pacioli.(c) Lucas Pacioli.
  17. 17Funds Flow Statement and sources and application statement are:’ (a) Synonymous (b) Antagonistic (c) None of these(a) Synonymous
  18. 18Depreciation in spirit is similar to: (a) Depletion (b) Amortization (c) Depression.(b) Amortization
  19. 19Balance Sheet is always prepared: (a) for the year ended. (b) As on a specified date. (c) None of these.(b) As on a specified date.
  20. 20In Insurance, the following Profit and Loss Accounts are prepared: (a) Separate for Fire, Marine, and Accidents etc. (b) Consolidated for Fire, Marine, and Accidents etc. (c) None of these.(b) Consolidated for Fire, Marine, and Accidents etc.
  21. 21Partners in Pakistan can today be fixed at the following numbers: (a) 20 (b) 50 (c) 75.(a) 20
  22. 22Flexible budget is a budget with the following features: (a) Changes with volume of production. (b) Changes with variable expenses (c) Changes in Direct material.(a) Changes with volume of production.
  23. 23(8) Break Even can be calculated as under: (a) ______VC_______ FC- TR TC (b) FC I- VC TR (c) None of these.(b) FC I- VC TR
  24. 24Quick Ratio can be computed as under: (a) Quick . Assets/Quick Liabilities (b) Quick . Liabilities Current Assets (c) Current Assets/ Current LiabilitiesCurrent Assets/ Current Liabilities
  25. 25In straight line method of depreciation, the written down value of a fixed asset will be at the end of the life of the asset as under: (a) Rupee one (b) Rupee zero (c) None of these.(b) Rupee zero
  26. 26) Sales budget must be prepared: (a) Independently (b) Depending on production capacity (c) Based on Sales forecasts of market.(c) Based on Sales forecasts of market.
  27. 27Consolidation of subsidiary accounts in the balance sheet of a unlisted Holding company is at present in Pakistan: (a) Compulsory (b) Voluntary (c) Required.(c) Required.
  28. 28Retained earning is synonymous to: (a) Accumulated profit and loss account (b) Profit for the year (c) None of these.(a) Accumulated profit and loss account
    (b) Profit for the year
  29. 29The requirements of an audit report for a Banking Company in Pakistan is under: (a) Under the Banking Companies Ordinance, 1962. (b) Under the Companies Ordinance, 1984. (c) Under (a) and (b) above.(c) Under (a) and (b) above.
  30. 30Deferred Taxation is: (a) Fixed asset (b) Fixed liabilities (c) Part of Owners Equity.(c) Part of Owners Equity.
  31. 31Investment Corporation of Pakistan follows: (a) Open-end mutual funds (b) Closed-end mutual funds (c) None of these.(c) None of these.
  32. 32Directors Report is ---- in respect of financial report constituent. (a) Mandatory for a limited Company (b) Voluntary for a limited Company (c) None of these.(a) Mandatory for a limited Company
  33. 33Every limited Company in Pakistan is required by law to include the following along with financial reports: (a) Ratio Analysis (b) Chairman’s Review (c) None of these(b) Chairman’s Review
  34. 34Cash budget excludes the following: (a) Non-Cash items (b) Cash items (c) Purchase on Credit items.(a) Non-Cash items
  35. 35NGOs are legally required to: (a) Prepare accounts in a prescribed manner under the law. (b) Prepare accounts as desired by donors. (c) None of these.(a) Prepare accounts in a prescribed manner under the law.
  36. 36. Fixed Cost: a. Changes with production b. Never changes even if production capacity is doubled. c. None of the aboveb. Never changes even if production capacity is doubled
  37. 37Conversion cost is: a. Material Cost + Overhead Cost b. Direct Labour + Material Cost c. Labour Cost + Overhead Costc. Labour Cost + Overhead Cost
  38. 38Process Costing is relevant to: a. Cement industry b. Job Order cost oriented Projects c. None of the abovea. Cement industry
  39. 39Operating Profit is: a. Profit after deducting financial costs b. Profit after deducting taxes c. Profit after deducting normal operating expenses including depreciationc. Profit after deducting normal operating expenses including depreciation
  40. 40A good Cost Accounting System is: a. If it computes estimated cost only b. If it cannot be reconciled with financial accounts c. If it enables management to increase productivity and rationalize cost structurec. If it enables management to increase productivity and rationalize cost structure
  41. 41Verification includes: a. Checking Vouchers b. Examining audit report c. None of the abovec. None of the above
  42. 42Stratified audit sample means: a. Randomly selected items for audit b. Purposively selected items for audit c. Items carefully selected from each groupa. Randomly selected items for audit
  43. 43Internal Control is totally synonymous with: a. Internal check b. Internal audit c. None of abovec. None of above
  44. 44Audit of a bank is generally conducted through: a. Routine checking b. Couching c. Balance sheet audita. Routine checking
  45. 45An auditor is liable for his annual audit of accounts to: a. Creditors b. Bankers c. Ownersc. Owners
  46. 46Income Tax is levied on: a. Agricultural Income b. Presumptive Income c. None of aboveb. Presumptive Income
  47. 47If a firm has paid super-tax, its partners may follow any one of the following behaviours: a. No need to pay income tax, even if the income exceeds the taxable limit. b. Pay income tax, even if the income does not exceed the taxable income. c. Pay income tax as required under the law.c. Pay income tax as required under the law.
  48. 48A resident multinational company need not: a. Pay income tax, if it s caused under Double Taxation agreement. b. If it is not enjoying tax exemption under the Income Tax Ordinance, 1979 (Second Schedule). c. None of abovec. None of above
  49. 49Income Tax rates are the same for: a. Limited Companies b. Banking Companies c. None of aboveb. Banking Companies
  50. 50Income Tax rates are the same for: a. Limited Companies b. Banking Companies c. None of aboveb. Banking Companies
  51. 51Super Tax on companies is: a. In vogue in Pakistan b. Not in vogue in Pakistan c. None of aboveb. Not in vogue in Pakistan
  52. 52Current Ratio is calculated as: a. Fixed Assets/Current Liabilities b. Current Liabilities/Current Assets c. Current Assets/Current Liabilitiesc. Current Assets/Current Liabilities
  53. 53Short-term loan can be described as: a. If the period is three years b. If the period is less than one year c. If the period is over one yearb. If the period is less than one year
  54. 54Combination can be best described as: a. Restructuring of Capital of a Company b. Reduction of Capital of a Company c. Amalgamation of two different types of businessesc. Amalgamation of two different types of businesses
  55. 55Sources of funds can be increased by: a. Decreasing selling prices b. Increasing expenditure c. None of abovec. None of above
  56. 561) Books of original entry are called: (a) Ledger (b) Work sheets (c) Journal (d) None of these(c) Journal
  57. 57For preparing balance sheets prepaid expenses are shown as part of: (a) Liability (b) Equities (c) Assets (d) None of these(c) Assets
  58. 58Unpaid and unrecorded expenses are called: (a) Prepaid expenses (b) Accrued expenses (c) Additional expenses (d) None of these(b) Accrued expenses
  59. 59Amount, cash, or other assets removed from business by owner is: (a) Capital (b) Drawings (c) Assets (d) None of these(b) Drawings
  60. 60Under the diminishing balance method, depreciation amount is: (a) Payment (b) Receipt (c) Expenditure (d) None of these(c) Expenditure
  61. 61Users of accounting information include: (a) The tax authorities (b) Investors (c) Creditors (d) All of these(d) All of these
  62. 62(7) The business form(s) in which the owner(s) is (are) personally liable is (are) the: (a) Partnership only (b) Proprietorship (c) Corporation only (d) Partnership and proprietorship (e) None of thesed) Partnership and proprietorship
  63. 63The investment of personal assets by the owner: (a) Increases total assets and increases owner’s equity (b) Increases total assets only (c) Has no effect on assets but increases owner’s equity(a) Increases total assets and increases owner’s equity
  64. 64All of the following are forms of organizations except: (a) Proprietorship (b) Corporation (c) Retailer (d) Partnership (e) None of these(c) Retailer
  65. 65Economic resources of a business that are expected to be of benefit in the future are referred to as: (a) Liabilities (b) Owner’s equity (c) Withdrawals (d) Assets (e) None of these(d) Assets
  66. 66An owner investment of land into the business would: (a) Decrease withdrawals (b) Increase liabilities (c) Increase owner’s equity (d) Decrease assets (e) None of these(c) Increase owner’s equity
  67. 67A cash purchase of supplies would: (a) Decrease owner’s equity (b) Increase liabilities (c) Have no effect on total assets (d) None of these(c) Have no effect on total assets
  68. 68An owner investment of each into the business would: (a) Increase assets (b) Decrease liabilities (c) Increase withdrawals (d) Decrease owner’s equity (e) None of these(a) Increase assets
  69. 69The payment of rent each month for office space would: (a) Decrease total assets (b) Increase liabilities (c) Increase owner’s equity (d) None of these(a) Decrease total assets
  70. 70Real accounts are related to: (a) Assets (b) Expenses and incomes (c) Customers and Creditors etc. (d) None of these(a) Assets
  71. 71Which one of the following accounts would usually have a debit balance? (a) Cash (b) Creditors (c) Accounts payable (d) Salaries Expenses (e) None of these(a) Cash
  72. 72Quick assets include which of the following? (a) Cash (b) Accounts Receivable (c) Inventories (d) Only (a) and (b) (e) None of these(d) Only (a) and (b)
  73. 73Net income plus operating expenses is equal to: (a) Net sales (b) Cost of goods available for sale (c) Cost of goods sold (d) Gross profit (e) None of these(d) Gross profit
  74. 74The measurable value of an alternative use of resources is referred to as: (a) An opportunity cost (b) An imputed cost (c) A different cost (d) A sunk cost (e) None of these(a) An opportunity cost
  75. 75A quantitative expression of management objectives is an: (a) Organizational chart (b)Management chart (c) Budget (d) Procedural chart (e) None of these(c) Budget
  76. 76A cost center is: (a) A unit of production in relation to which costs are ascertained (b) A location which is responsible for controlling direct costs (c) Part of the factory overhead system by which costs are gathered (d) Any location or department which incurs cost (e) None of these(d) Any location or department which incurs cost
  77. 77At break-even point of 400 units sold the variable costs were Rs. 400 and the fixed costs were Rs.200. What will be the 401 units sold contributing to profit before income tax? (a) Rs. 0.00 (b) Rs. 0.50 (c) Rs. 1.00 (d) Rs. 1.50 (e) None of these(b) Rs. 0.50
  78. 78In considering a special order situation that will enable a company to make use of currently idle capacity, which of the following cost will be irrelevant: (a) Materials (b) Depreciation (c) Direct labour (d) Variable factory overhead (e) None of these(b) Depreciation
  79. 79A fixed cost: (a) May change in total when such change is not related to changes in production (b) Will not change in total because it is not related to changes in production (c) Is constant per unit for each unit of change in production (d) May change in total, depending on production with the relevant range (e) None of these(b) Will not change in total because it is not related to changes in production
  80. 80Completion of a job is result in: (a) DR finished goods …….. CR WIP (b) DR Cost of goods ……... CR finished goods (c) DR WIP ……………..….….. CR FOH control (d) DR FOH control …….….. CR FOH applied (e) None of theseDR finished goods …….. CR WIP
  81. 81Operating cost in often named as: (a) Manufacturing cost plus commercial expenses (b) Prime cost plus factory overheads (c) Direct material plus direct labour (d) Selling plus administrative expenses (e) None of these(d) Selling plus administrative expenses
  82. 82Expenses such as rent and depreciation of a building are shared by several departments these are: (a) Indirect expenses (b) Direct expenses (c) Joint expenses (d) All of the above (e) None of these(a) Indirect expenses
  83. 83If under applied FOH is closed to cost of goods sold, the journal entry is: (a) DR Cost of goods sold …….. CR FOH control (b) DR FOH control ……..……….. CR Cost of goods sold (c) DR FOH control ……..……….. CR Profit % loss account (d) None of thesea) DR Cost of goods sold …….. CR FOH control
  84. 84Re-order quantity …… 3600 units Maximum consumption ...… 900 units per week Minimum comsumption …....300 units per week Re-order period …………….….5 weeks Based on this data Re-order level is: (a) 4500 units (b) 3900 units (c) 1200 units (d) 400 units (e) None of these(a) 4500 units
  85. 85The time lag between indenting and receiving material is called: (a) Lead time (b) Idle time (c) Stock out time (d) None of these(a) Lead time
  86. 86A credit balance remaining in FOH Control account is called: (a) Over-applied overhead (b) Under-applied overhead (c) Actual overhead (d) None of these(a) Over-applied overhead
  87. 87Direct material cost plus direct labour cost is called: (a) Prime cost (b) Conversion cost (c) Product cost (d) All of these (e) None of these(a) Prime cost
  88. 88Productivity means: (a) The ability to produce (b) All units produced (c) Good units produced (d) None of these(a) The ability to produce
  89. 89A segment of the business that generates both revenue and cost is called: (a) Profit Center (b) Cost Center (c) Cost driver (d) All of these (e) None of these(a) Profit Center
  90. 90Verification includes: (a) Checking vouchers (b) Examining audit report (c) None of these(c) None of these
  91. 91Audit of a bank is generally conducted through: (a) Routine checking (b) Vouching (c) Balance sheet audit (d) None of these(a) Routine checking
  92. 92Preparation of final financial reports is governed in Pakistan under: (a) No law (b) Companies Ordinance 1984 (c) None of these(b) Companies Ordinance 1984
  93. 93Depreciation is based on: (a) Economic life of asset (b) Declared life of asset by supplier (c) Normal life of asset (d) None of these(a) Economic life of asset
  94. 94Inventory turnover is calculated as under: (a) Cost of Goods sold/Closing Inventory (b) Gross profit/Closing Inventory (c) Sales/Opening Inventory (d) None of these(a) Cost of Goods sold/Closing Inventory
  95. 95Deferred Revenue is: (a) Liability (b) Asset (c) None of these(a) Liability
  96. 96Preparation of annual report of a firm is governed under: (a) Partnership Act 1932 (b) Under partnership Deed (c) None of these(c) None of these
  97. 97Deferred Taxation amount be treated as: (a) Foot note (b) An item in the Balance Sheet on asset side (c) None of these(b) An item in the Balance Sheet on asset side
  98. 98Return of Equity will be calculated as under: (a) Operating Profit x 100/Equity (b) Net profit x 100/Paid up Capital only (c) None of these(b) Net profit x 100/Paid up Capital only
  99. 99Current maturity of long term loan is: (a) Current Liability (b) Long Term Liability (c) None of these(a) Current Liability
  100. 100Prime cost is calculated as under: (a) Manufacturing Cost/Cost of Goods Sold (b) Direct Method plus factory overheads (c) Direct labour + Direct Material (d) None of these(c) Direct labour + Direct Material
  101. 101Process Cost is very much applicable in: (a) Construction Industry (b) Pharmaceutical Industry (c) Air line company (d) None of these(a) Construction Industry
  102. 102Random sampling in auditing means: (a) Selection through convenience sampling (b) Selection through scientific sampling approach (c) None of these(b) Selection through scientific sampling approach
  103. 103Increase in income constitutes: (a) Inflows (b) Outflows (c) None of these(a) Inflows
  104. 104M & A stands for: (a) Mergers & Analysis (b) Mergers & Acquisitions (c) Mergers & Allocation (d) None of these(b) Mergers & Acquisitions
  105. 105An endowment insurance policy can be taken in respect of: (a) Fire insurance (b) Accident insurance (c) Life insurance (d) None of these(c) Life insurance
  106. 106(9) Audit and special audit are the same: (a) In Insurance Company (b) In Banking Company (c) None of these(c) None of these
  107. 107Acid test is the same as: (a) Quick test (b) Liquid test (c) None of these(a) Quick test
  108. 108Acid Test Ratio is calculated as under: (a) Current Assets/Current Liabilities (b) Fixed Assets/Current Liabilities (c) Liquid Assets/Current Liabilities (d) None of these(c) Liquid Assets/Current Liabilities
  109. 109Deferred cost is a: (a) Liability (b)Asset (c) None of these(b)Asset
  110. 110Work Sheet is: (a) Balance Sheet (b) Fund Flows Statement (c) A combination of Profit and Loss Account and Balance Sheet items (d) None of these(c) A combination of Profit and Loss Account and Balance Sheet items
  111. 111Banks, for the preparation of financial statements, are governed under: (a) Banking Companies Ordinance, 1962 (b) State Bank of Pakistan Act (c) None of thesea) Banking Companies Ordinance, 1962
  112. 112Return on investment is computed: (a) Investment/Profit x 100 (b) Profit x 100/Investment (c) None of these(b) Profit x 100/Investment
    (c) None of these
  113. 113Rent of the premises constitutes variable expenses for cost allocation: (a) True (b) False(b) False
  114. 114Current maturity of long term loan is: (a) Current Liability (b) Long Term Liability © None of these(a) Current Liability
  115. 115An auditor is liable under the following circumstances: (a) Third Party Liabilities (b) Fraud perpetrated in highly sophisticated circumstances (c) None of these(a) Third Party Liabilities
    (b) Fraud perpetrated in highly sophisticated circumstances
  116. 116Principal and markup payment within one year constitutes long term liability for disclosure in the balance sheet of a company. (a) True (b) False(b) False
  117. 117Working Capital finance can be termed as “Running Finance” in a limited company. (a) True (b) False(a) True
  118. 118Income from Capital gains arising out of trading on a stock strange in Pakistan is taxable these days: (a) True (b) False(a) True

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Descrição
FlashCards sobre Audit, criado por cezaan em 19-10-2014.
Criado por
cezaan · out 2014
Atualizado
10 ago 2016
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