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
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. Thecompany 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 aresult of audit or evaluation performed on alegal 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 inthe regulation of the audit profession
The auditing profession is regulated onlyby 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 CompletenessExistence
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 ofconducting successful business it has become alisted company recently. Nowthe 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 oneof 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 specificno 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 thetime 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
