ACC311 FINAL TERM LIVE QUIZ 2023 January 17, 2023 by Dilawar 57 Created on January 17, 2023 By Dilawar ACC311 FINAL TERM LIVE QUIZ 2023 1 / 20 Who should prepare the annual capital expenditure budgets of the company in order to keep effective? Someone directly responsible to the shareholders Someone directly responsible for goods delivery to the customers Someone directly responsible to the board of directors Someone directly responsible to deal with the suppliers 2 / 20 Which one of the following matters should be included in the letter of representation? Existence of any immaterial mistake in the statements Existence of any fraud or error in the statements Company’s growth trend in the future in figures Market value of the company’s stock 3 / 20 Non current assets manufactured or constructed by the company itself should reflect which types of costs in the costing records? Direct costs plus relevant overhead but not include any profit Direct costs plus relevant overhead and any profit earned on it Indirect costs plus relevant overhead but not include any profit Indirect costs plus relevant overhead and any profit earned on it 4 / 20 An Automobile Company hires auditors at the year end. Auditors are at the stage of verification and vouching of company’s financials. Before examining the equity section they develop general aspects concerning the owner’s equity. In your opinion which one of the following aspects may NOT be considered by the auditors during this assessment? Also Read: CS401 IMPORTANT MCQ'S FINAL TERM 23/24 Share capital is properly classified and described in the accounts Capital stock is enough to execute the company’s financial needs Reserves are properly classified and presented Movements in reserves are properly authorized 5 / 20 Which one of the following aspects of assets must be verified? Cost and authorization Value and existence Beneficial investment Presentation in the accounts 6 / 20 Which one of the following may not be any matter relevant to verification of assets? Taxation Vouching Insurance The letter of representation 7 / 20 Which one of the following may NOT consist of any verification methods? Closing balance Acquisitions Disposals Reconciliation 8 / 20 What auditors seek in the register of non current assets for each major group of assets? Details of each item its cost and residual value Details of each item its cost and accumulated depreciation Details of each item its cost and depreciation Details of each item its cost and capital investment expected returns 9 / 20 How often Inventory levels should be checked against the inventory records in order to keep its control effectively? Rarely Periodically Never Daily 10 / 20 Also Read: ECO401 FINAL TERM PAPERS LIVE MCQ'S How often the Bank reconciliations should be prepared? Weekly Monthly Quarterly Annually 11 / 20 Following desc riptions are the examples of substantive testing EXCEPT: Test of account balances to verify the correctness of the amounts Verification that an operating system and/or applications are configured appropriately to the companies needs Review of minutes of directors; meetings and inquiry Use of statistical sampling to determine the accuracy of financial statement figures 12 / 20 The auditors are required to perform tests of controls when The internal controls are operating inefficiently Substantive procedures alone provide sufficient appropriate audit evidence at the assertion level. Substantive procedures alone do not provide sufficient appropriate audit evidence at the assertion level. Analytical procedures alone do not provide sufficient appropriate audit evidence at the assertion level. 13 / 20 Analytical procedures are carried out for which one of the following purposes? To reduce detection risk To assess inherent risk To reduce control risk To determine detection risk 14 / 20 Test of controls comprise of testing of all EXCEPT Design Implementation Operating efficiency Operating effectiveness 15 / 20 Stratification is a process of dividing a population into sub- populations which have Heterogeneous characteristics Nothing in common Lot of sampling units Homogeneous characteristics 16 / 20 Also Read: ACC501 FINAL TERM LIVE QUIZ 2023 The auditor should select sample in such a way that: All important items should be selected All items containing misstatement should be selected All items in the population are selected All items in population have an opportunity of being selected 17 / 20 Where the auditor relies more on the system of internal control the circumstance warrant: He spends more time on audit Effectiveness of the audit is affected Efficiency of the audit is affected Reliability of the results of the tests is affected 18 / 20 Sample risk and sample size have A direct relationship An inverse relationship No relation None of the given options 19 / 20 Tolerable error and sample size have A direct relationship An inverse relationship No relation No relation 20 / 20 Which of the following is needed to be verified at the time of verification of Account Balances? Look over any significant reconciling items of an unusual nature Inspect about outstanding stale cheques Acquire direct bank confirmation All of the given options Your score is The average score is 51% LinkedIn Facebook Twitter VKontakte 0% Restart quiz Related
