Which of the following documents is not relevant for vouching cash sales?
Which of the following documents is not relevant for vouching cash sales?
Salesmen’s summary | |
Monthly statements sent to customers | |
Bank statement | |
Daily cash sales summary |
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?
Salesmen’s summary | |
Monthly statements sent to customers | |
Bank statement | |
Daily cash sales summary |
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 | |
2, 3 and 4 only | |
1, 2 and 3 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
Unqualified report with ‘an emphasis of matter’ paragraph; | |
Adverse opinion | |
Qualified opinion | |
Disclaimer of opinion |
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 | |
Estimate of the total likely misstatement is more than materially level | |
Estimates of the total likely misstatement is less than materiality level | |
Estimates of the total likely misstatement cannot be made |
When applying analytical procedures, an auditor could develop independent estimate of an account balance to compare it to___________?
client’s unedited account balance | |
Prior year audited balance | |
Prior year audited balance adjusted for trends in the industry | |
client’s unedited account balance adjusted for trends in the industry |
What sort of assurance is provided in a review engagement?
No assurance | |
High level of assurance | |
Negative assurance | |
Positive assurance |
What is the primary objective of analytical procedures used in the overall review stage of an audit?
To direct attention to potential risk areas | |
To help to corroborate the conclusions drawn from individual components of financial statements | |
To reduce specific detection risk | |
To satisfy doubts when questions arise about a client’s ability to continue |
What is meant by the expression ‘expectation gap’?
The gap between the auditors’ own perception of their duties and how they are set out in the Companies Act | |
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 general public expects them to perform | |
The gap between how the directors of a company perform their duties and how the shareholders expect them to perform |
What is meant by negative assurance?
The auditor cannot give an opinion due to lack of evidence. | |
The auditor did not find anything to indicate that a material misstatement exists. | |
The auditor could not conduct any tests due to lack of controls. | |
The client’s financial statements were found to be materially misstated. |
What are analytical procedures?
Substantive tests designed to study relationships between financial and nonfinancial | |
All of the above | |
Substantive tests designed to assess control risk | |
Substantive tests designed to evaluate the validity of management’s representation letter |
Verification refers to_________?
Examining the journal and ledger | |
Examining the physical existence and valuation of assets. | |
Examination of vouchers related to assets. | |
None of the above. |
To test whether sales have been recorded, the auditor should draw a sample from a file of__________?
sales invoices | |
bill of loading | |
sales orders | |
purchase orders |
The term of the auditor ship of first auditor would be from the date of appointment till________?
the conclusion of statutory meeting | |
the conclusion of first annual general meeting | |
the conclusion of next annual general meeting | |
the date of removal |
The date on auditor’s report should not be____________?
later than the date on which the accounts are approved in board’s meeting | |
Both and | |
earlier than the date on which the accounts are approved by the management | |
the data of AGM |
The branch auditor is appointed by___________?
Board of directors in board meeting | |
Any of the above | |
Shareholders in general meeting | |
Shareholders in an annual general meeting |
The basic assumption underlying the use of analytical procedures is:____________?
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. | |
It helps the auditor to study relationship among elements of financial information |
The authority to remove the first auditor before the expiry of term is with__________?
the shareholders in the first annual General meeting | |
the shareholders in a general meeting | |
the Central Government | |
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 | |
identify cases of unrecorded revenue | |
Any of these | |
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 all transactions recorded | |
Examination of adjusting and closing entries | |
Checking of selected number of transactions |
The term ‘Audit’ is derived from a Latin word “audire” which means___________?
To inspect | |
To hear | |
To examine | |
To investigate |
Stock should be valued at_________?
Cost less depreciation. | |
Cost or Market price whichever is lower. | |
Market price | |
Cost |
Scope of financial audit is__________?
Both (a) and (b) | |
Non-financial information | |
None of these | |
Financial information |
The scope of internal audit is decided by the___________?
Management | |
Shareholders | |
Government | |
Law |
A sale of Rs. 50.000 to A was entered as a sale to B. This is an example of____________?
Compensating error | |
Error of commission | |
Error of principle | |
Error of omission |