JOIN ADRE 2.0 Telegram Group

Auditing General Knowledge Quiz | Auditing General Knowledge Short Questions & Answers

Questions
41 Floating assets are valued at____________?
A cost
B Market price
C Cost or market price whichever is lower
D Cost less depreciation

Answer: Cost or market price whichever is lower
42 Stock should be valued at_________?
A Cost
B Market price
C Cost or Market price whichever is lower.
D Cost less depreciation.

Answer: Cost or Market price whichever is lower.
Advertisement
Article and Schedule Quiz Start Test!

DOWNLOAD CURRENT AFFAIRS PDF FROM APP

43 Verification refers to_________?
A Examining the physical existence and valuation of assets.
B Examining the journal and ledger
C Examination of vouchers related to assets.
D None of the above.

Answer: Examining the physical existence and valuation of assets.
44 Which of the following statements is most closely associated with analytical procedure applied at substantive stage?
A It helps to study relationship among balance sheet accounts
B It helps to discover material misstatements in the financial statements
C It helps to identify possible oversights
D It helps to accumulate evidence supporting the validity of a specific account balance

Answer: It helps to accumulate evidence supporting the validity of a specific account balance
45 Analytical procedures issued in the planning stage of an audit, generally
A Helps to determine the nature, timing and extent of other audit procedures
B Directs attention to potential risk areas
C Indicates important aspects of business
D All of the above

Answer: All of the above
46 In determining the level of materiality for an audit, what should not be considered?
A Prior year’s errors
B The auditor’s remuneration
C Adjusted interim financial statements
D Prior year’s financial statements

Answer: The auditor’s remuneration
47 When issuing unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the___________?
A Amount of known misstatement is documented in working papers
B Estimates of the total likely misstatement is less than materiality level
C Estimate of the total likely misstatement is more than materially level
D Estimates of the total likely misstatement cannot be made

Answer: Estimates of the total likely misstatement is less than materiality level
48 ______the audit risks_______the materiality and_________the audit effort.
A Lower, Higher, Lower
B Lower, Lower, Higher
C Higher, Lower, Lower
D Lower, Higher, Higher

Answer: Lower, Higher, Lower
49 Test Checking refers to___________?
A Testing of accounts and records
B Checking of selected number of transactions
C Examination of adjusting and closing entries
D Checking of all transactions recorded

Answer: Checking of selected number of transactions
50 Window dressing implies_______________?
A Curtailment of expenses
B Checking of Wastages
C Under valuation of assets
D Over Valuation of assets

Answer: Over Valuation of assets
51 Errors of Omission are_____________?
A Technical errors
B Errors of principle
C Compensating errors
D None of the above

Answer: Technical errors
52 Internal check is carried on by___________?
A Staff specially appointed for the purpose
B Internal auditor
C Supervisor of the staff
D Members of the staff

Answer: Members of the staff
53 Which of the following statements is not true about continuous audit?
A It is conducted at regular interval
B It may be carried out on daily basis
C It is needed when the organization has a good internal control system
D It is expensive

Answer: It is needed when the organization has a good internal control system
54 Institute of Chartered Accountants of Pakistan was established in____________?
A 1949
B 1956
C 1961
D 1972

Answer: 1961
55 Goods sold on the basis of ‘sales or return ‘ should:
A Be included in the stock
B Not be included in the stock
C Not be checked by auditor
D None of the above

Answer: Be included in the stock
56 Of the following, which is the least persuasive type of audit evidence?
A Bank statements obtained from the client
B Documents obtained by auditor from third parties directly.
C Carbon copies of sales invoices inspected by the auditor
D Computations made by the auditor

Answer: Carbon copies of sales invoices inspected by the auditor
57 Which of the following statements is, generally, correct about the reliability of audit evidence?
A To be reliable, evidence should conclusive rather than persuasive
B Effective internal control system provides reliable audit evidence
C Evidence obtained from outside sources routed through the client
D All are correct

Answer: Effective internal control system provides reliable audit evidence
58 In an audit of financial statements, substantive tests are audit procedures that __________?
A May be eliminated for an account balance under certain conditions
B Are designed to discover significant subsequent events
C Will increase proportionately when the auditor decreases the assessed level of control risk
D May be test of transactions, test of balance and analytical procedures

Answer: May be test of transactions, test of balance and analytical procedures
59 The nature, timing and extent of substantive procedures is related to assessed level of control risk
A Randomly
B Disproportionately
C Directly
D Inversely

Answer: Directly
60 Which of the following is not corroborative evidence?
A Minutes of meetings
B Confirmations from debtors
C Information gathered by auditor through observation
D Worksheet supporting consolidated financial statements

Answer: Worksheet supporting consolidated financial statements

ADRE 2.0 FULL LENGTH MOCK TEST

Take Mock Tests

Missiles Mock Test Start Test!
SSC MTS Mock Test Start Test
IBPS CLERK MOCK TEST Start Test
SSC MTS 2022 JULY 26 Shift 1 (ENGLISH) Start Test!
SSC GD Previous Year Paper 2021 Nov 17 Shift - I (Hindi) Start Test!
SSC CGL Tier - 1 PYP 2022 April 21 Shift- 1 (ENGLISH) Start Test!
MPSC PAPER I MOCK TEST 1 (ENGLISH) Start Test!
IB Security Assistant Mock test 1 (english) Start Test!
UP POLICE CONSTABLE MOCK TEST 1 Start Test!
DELHI POLICE CONSTABLE MOCK TEST 1 (HINDI) Start Test!
Advertisement
Assam Direct Recruitment Test Series