ACC311-MIDTERM PAPER
SOLVED BY AHSAN
Question:
Which
one of the following persons are responsible for the preparation
of Audit
Engagement later?
Options: Auditor Client
Company registrar
Company secretary
Question:
Who
is responsible for designing and preparing the financial statements?
Options: Auditor Management
Accountant
Company secretary
Question:
Which
one of the following is the method
of assessing the
internal control system
of an
entity?
Options:
Audit
procedures Audit
evidence Compliance audit
Technical analysis
Question:
The purpose of engagement letter includes
the following EXCEPT:
Options:
To defines the auditor’s responsibilities clearly
To minimize misunderstandings
between the client
and auditors
To educate the cliet
To help the auditor in preparing
audit report
Question:
A manufacturing
company wants
to hire external
auditors
who examine the activities
operations procedures and processes
of each
department
of the company. The company follows the local and international laws rules ad
regulations and also has set standards for
the efficiency and effectiveness. The
company shall have to
provide the access
of all kind of operational information that will be required
to the auditors as audit evidences. Considering the above situation
select the most suitable type of audit which the company should opt?
Options:
Compliance audit Operational audit Technology audit
Financial audit
Question:
Which
one of the following is considered
as the formal opinion
or disclaimer thereof
issued by an independent auditor
as a
result of audit or evaluation performed on a
legal entity?
Options:
Financial
report
Financial statement
Director’s
report
Auditor's
report
Question:
Which
of the following statements is true?
Options:
The auditing profession is unregulated
The auditing profession is regulated only by its
own professional body
Outside bodies sometimes
become involved
in
the regulation of the
audit
profession
The auditing profession is regulated only by the government
Question:
Which
one of the following primary assertions is
satisfied when an auditor ensures
that
there are no
unrecorded
assets liabilities transactions
or events or undisclosed
items
in the
client’s financial
records?
Options: Valuation Completeness
Existence
Rights and obligations
Question:
Internal
control is primarily established
within a company to
do which of the following?
Options:
To prevent fraud
in the company affairs
To provide reasonable assurance that
the company's ob jectives will be achieved
To catch all errors
that may occur in the company
To aid in the effective auditing of
the company
Fixation of remuneration of
auditors
can be determined by the following authorities
EXCEPT: (Companies Ordinance 1984)
Options:
Directors
Company secretary Commission
Members
Question:
A leather goods manufacturing company has
started
its operations in year 2001.
After
five years of
conducting successful business it has become a
listed company recently. Now
the company is
required
to hire its first auditors
but neither the directors
nor the members could appoint the auditors
during the past 4 months
since the incorporation of
the company. Select among the following authorities who can appoint the auditors in this
situation? (Companies
Ordinance 1984)
Options:
Company secretary Company registrar
Commission
Institute of Chartered Accountants
of Pakistan (ICAP)
Question:
A company has
hired
auditors who
have performed the audit process in
accordance with
the auditing standards
but they fail to present its
report. According to the Company law
1984 the auditors
shall be liable
for which one
of the following liabilities?
Options:
Criminal liability Liability for misfeasance
Liability for negligence Accounting liability
Question:
DBMSes & Databa ses are same
things.
Options: false true
Question:
Audit
sampling conducted
Options:
On selected number of items
On Whole population On specific
no of items All of the given options
Question:
Advantages
of Audit Sampling
Options:
Economical
Time Saving
More Practical
All of the given
options
Question:
Which
of the following is
the component of audit risk?
Options:
Inherent
risk Control risk Detection
risk
All of the given options
Question:
Which
of the following is
not needed to be verified
at the time
of verification of Equity?
Options:
Share capital’s classification
Movement in share capital
Preliminary expenses
are properly write off
Movements in reserves
*
Question:
Which
of the following is
needed to be verified at
the
time of verification
of Account
Balances?
Options:
Look over
any significant
reconciling items
of an unusual nature
Inspect about outstanding stale cheques
Acquire direct
bank confirmation
All of the given
options
Question:
Tolerable error and sample size have
Options:
Homogeneous
characteristics
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