Which of the following documents is not relevant for vouching cash sales?
Which of the following documents is not relevant for vouching cash sales?
Daily cash sales summary | |
Salesmen’s summary | |
Monthly statements sent to customers | |
Bank statement |
پاک اسٹڈی لائبریری اپنی خدمات کو بہتر کرنے کے لئے نئے سوفٹ وئیر انسٹال کررہی ہے ۔ اس لئے آئندہ کچھ دن آپ کو کچھ صفحات تک رسائی میں مشکلات کا سامنا ہوسکتا ہے ۔ جس کے لئے ہم معذرت خواہ ہیں۔
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Which of the following documents is not relevant for vouching cash sales?
Daily cash sales summary | |
Salesmen’s summary | |
Monthly statements sent to customers | |
Bank statement |
Which of the following are fundamental ethical principles for professional accountants? 1 Competence 2 Compliance 3 Integrity 4 Objectivity
1, 2 and 4 only | |
1, 3 and 4 only | |
1, 2 and 3 only | |
2, 3 and 4 only |
When restrictions that significantly affect the scope of the audit are imposed by the client, the auditor generally should issue which of the following
Disclaimer of opinion | |
Adverse opinion | |
Qualified opinion | |
Unqualified report with ‘an emphasis of matter’ paragraph; |
When issuing unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the_____________?
Amount of known misstatement is documented in working papers | |
Estimates of the total likely misstatement cannot be made | |
Estimates of the total likely misstatement is less than materiality level | |
Estimate of the total likely misstatement is more than materially level |
When applying analytical procedures, an auditor could develop independent estimate of an account balance to compare it to___________?
client’s unedited account balance adjusted for trends in the industry | |
Prior year audited balance | |
client’s unedited account balance | |
Prior year audited balance adjusted for trends in the industry |
What sort of assurance is provided in a review engagement?
High level of assurance | |
Positive assurance | |
Negative assurance | |
No assurance |
What is the primary objective of analytical procedures used in the overall review stage of an audit?
To reduce specific detection risk | |
To direct attention to potential risk areas | |
To satisfy doubts when questions arise about a client’s ability to continue | |
To help to corroborate the conclusions drawn from individual components of financial statements |
What is meant by the expression ‘expectation gap’?
The gap between the public perception of the role of company auditors and their statutory role and responsibilities | |
The gap between how the directors of a company perform their duties and how the shareholders expect them to perform | |
The gap between the auditors’ own perception of their duties and how they are set out in the Companies Act | |
The gap between how the directors of a company perform their duties and how the general public expects them to perform |
What is meant by negative assurance?
The auditor cannot give an opinion due to lack of evidence. | |
The auditor could not conduct any tests due to lack of controls. | |
The client’s financial statements were found to be materially misstated. | |
The auditor did not find anything to indicate that a material misstatement exists. |
What are analytical procedures?
Substantive tests designed to assess control risk | |
Substantive tests designed to study relationships between financial and nonfinancial | |
All of the above | |
Substantive tests designed to evaluate the validity of management’s representation letter |
Verification refers to_________?
None of the above. | |
Examination of vouchers related to assets. | |
Examining the physical existence and valuation of assets. | |
Examining the journal and ledger |
To test whether sales have been recorded, the auditor should draw a sample from a file of__________?
sales invoices | |
purchase orders | |
bill of loading | |
sales orders |
The term of the auditor ship of first auditor would be from the date of appointment till________?
the date of removal | |
the conclusion of first annual general meeting | |
the conclusion of next annual general meeting | |
the conclusion of statutory meeting |
The date on auditor’s report should not be____________?
earlier than the date on which the accounts are approved by the management | |
the data of AGM | |
Both and | |
later than the date on which the accounts are approved in board’s meeting |
The branch auditor is appointed by___________?
Shareholders in an annual general meeting | |
Shareholders in general meeting | |
Board of directors in board meeting | |
Any of the above |
The basic assumption underlying the use of analytical procedures is:____________?
It helps the auditor to study relationship among elements of financial information | |
Relationship among data exist and continue in the absence of known condition to the contrary | |
Analytical procedures will not be able to detect unusual relationships | |
None of the above. |
The authority to remove the first auditor before the expiry of term is with__________?
the shareholders in a general meeting | |
the Central Government | |
the shareholders in the first annual General meeting | |
the board of directors |
The auditor should examine subsequent realization of revenue such as dividends, interest,commission, etc to:_____________?
ensure proper disclosure in the balance sheet | |
Any of these | |
identify cases of unrecorded revenue | |
recompute accrued income on the data of balance sheet |
The auditor has a right to___________?
Both and | |
Obtain information and explanation | |
Obtain information and explanation necessary for the purpose of audit | |
Obtain information and explanation from the employees and officers |
Test Checking refers to___________?
Testing of accounts and records | |
Checking of selected number of transactions | |
Checking of all transactions recorded | |
Examination of adjusting and closing entries |
The term ‘Audit’ is derived from a Latin word “audire” which means___________?
To hear | |
To examine | |
To inspect | |
To investigate |
Stock should be valued at_________?
Cost | |
Market price | |
Cost or Market price whichever is lower. | |
Cost less depreciation. |
Scope of financial audit is__________?
Financial information | |
Both (a) and (b) | |
None of these | |
Non-financial information |
The scope of internal audit is decided by the___________?
Government | |
Law | |
Management | |
Shareholders |
A sale of Rs. 50.000 to A was entered as a sale to B. This is an example of____________?
Error of commission | |
Error of principle | |
Compensating error | |
Error of omission |