Stock should be valued at_________?
A. Cost B. Market price C. Cost or Market price whichever is lower. D. Cost less depreciation. The correct answer to the question: “Stock should be valued at_________?” is “Cost”.
Auditing MCQs with Answers
Floating assets are valued at____________?
A. cost B. Market price C. Cost or market price whichever is lower D. Cost less depreciation The correct answer to the question: “Floating assets are valued at____________?” is “Cost or market price whichever is lower”.
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 The correct answer to the question: “Goods sold on the basis of ‘sales or return ‘ should:” is “Be included in the stock”.
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. The correct answer to the question: “Which of the following statements is, generally, correct about the reliability of audit evidence?” is “Effective … Read more
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
The nature, timing and extent of substantive procedures is related to assessed level of control risk
A. Randomly B. Disproportionately C. Directly D. Inversely The correct answer to the question: “The nature, timing and extent of substantive procedures is related to assessed level of control risk” is “Directly”.
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
What would most appropriately describe the risk of incorrect rejection in terms of substantive testing?
A. The auditor concludes balance is materially correct when in actual fact it is not B. The auditor concludes that the balance is materially misstated when in actual fact it not C. The auditor has rejected an item for sample which was material D. None of the above The correct answer to the question: “What … Read more
Audit programme is prepared by____________?
A. The auditor B. The client C. The audit assistants D. The auditor and his audit assistants The correct answer to the question: “Audit programme is prepared by____________?” is “The auditor”.
The working papers which auditor prepares for financial statements audit are___________?
A. Evidence for audit conclusions B. Owned by the client C. Owned by the auditor D. Retained in auditor’s office until a change in auditors The correct answer to the question: “The working papers which auditor prepares for financial statements audit are___________?” is “Owned by the auditor”.