A. Computations made by the auditor

B. Documents obtained by auditor from third parties directly.

D. Bank statements obtained from the client

A. He should examine whether recognised accounting principle have been consistently

B. His opinion is no guarantee to future viability of business

C. The auditor should express an opinion on financial statements.

A. The auditor concludes the balance is materially misstated when in actual fact is not

C. He applies random sampling on data which is inaccurate and inconsistent

D. The auditor has rejected an item from sample which was not supported by documentary evidence

B. Expenses paid on installation of a plant.

C. The fees paid to engineer who constructed the plant.

D. Cost of dismantling a building in case a new building is to be constructed on the land

A. The nature of auditors report

B. The assessed level of control risk

C. The possibility of peer review

B. None of these

C. Continuous audit

D. Internal check system

B. Standards on Review Engagement

C. Standards on Assurance Engagement

D. Standards on Auditing

B. The quantity of audit evidence

C. The objectivity and integrity of the auditor

D. The independence of the source of evidence

A. None of the above

C. Not be included in the stock

D. Not be checked by auditor

A. The safe custody of working papers is the responsibility of client, if kept at his premises

C. The working papers must be retained by an audit firm for a period of 10 years

D. Successor auditors may have access to working papers of the predecessor auditors. The approval of client is not required.

A. Adjusted interim financial statements

C. Prior years financial statements

D. Prior years errors

A. All of the above

B. Directors of the company

D. The Central Government

A. Comparing the actual costs with standard costs

B. Comparing aggregate wages paid to number of employees

C. All of them are analytical procedure

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

A. By independent auditor

B. By a government auditor

C. Statutorily appointed auditor

A. Managements integrity

B. Auditors qualification

C. Control risk

B. Books and accounts of a company

C. Notices and documents of the company

D. Books, accounts and documents of the company

A. Cost of raising a loan

B. Expenses incurred for laying of sewers on land purchased

C. Insurance premium paid at the time of registration of the ship

A. distribution overhead.

B. works on cost.

D. selling overhead.

A. the potential use of internal audit

C. the timing of the audit

D. last years audit

A. The audit assistants

C. The client

D. The auditor

A. Expression of opinion

B. Detection and Prevention of fraud and error

C. Both (A) and (B)

A. The auditor has rejected an item from sample which was not supported by documentary evidence

B. He applies random sampling on data which is inaccurate and inconsistent

D. The auditor concludes the balance is materially misstated when in actual fact is not

A. They should not contain details regarding weaknesses in the internal control system

C. They document the level of independence maintained by the auditor

D. They help the auditor to monitor the effectiveness of the audit firms quality control

B. Undervaluation of closing stock

C. Charging higher rates of depreciation on fixed assets than actually required

D. Charging capital expenditure to revenue

A. unqualified opinion

C. disclaimer of opinion

D. qualified opinion

A. Disproportionately

C. Inversely

D. Randomly

A. Protect the interests of the minority shareholders

B. Detect and prevent errors and fraud

C. Assess the effectiveness of the companys performance

B. Accounts Payable

C. Inventory

D. Expenses

B. The auditors responsibility for detection and prevention of errors and frauds is similar.

C. All statements are correct.

D. Management fraud is more difficult to detect than employee fraud

A. the Central Government

C. the shareholders in the first annual General meeting

D. the board of directors

A. The timing of the audit

B. Analytical review

D. Last years written representation letter

A. the data of AGM

B. later than the date on which the accounts are approved in boards meeting

D. Both A. and B.

A. Income and expense accounts where appropriate

B. Assets

C. Liabilities

A. Retained in auditors office until a change in auditors

B. Owned by the client

C. Evidence for audit conclusions

A. Prior year audited balance

B. clients unedited account balance adjusted for trends in the industry

C. clients unedited account balance

A. It may be carried out on daily basis

B. It is expensive

D. It is conducted at regular interval

A. When auditor collects and evaluates it independently

B. When it constitutes entire population

C. When it is objective and relevant

A. Daily cash sales summary

B. Salesmens summary

D. Bank statement

A. Authenticated copy of relevant minutes of meetings may be regarded as management representation

B. It should be addressed to the auditor

C. It may be dated prior to the report date

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 eliminated for an account balance under certain conditions

A. To reduce specific detection risk

C. To direct attention to potential risk areas

D. To satisfy doubts when questions arise about a clients ability to continue

B. The auditor has rejected an item for sample which was material

C. None of the above

D. The auditor concludes balance is materially correct when in actual fact it is not

A. The risk of the auditor carrying out a test the wrong way round

C. The risk of the auditor reaching the wrong conclusions from testing

D. The risk of reliance on unsuitable audit evidence

B. Checking of Wastages

C. Curtailment of expenses

D. Under valuation of assets

A. Lower, Lower, Higher

B. Lower, Higher, Higher

D. Higher, Lower, Lower

B. sales orders

C. bill of loading

D. purchase orders

B. Speak at the AGM/EGM where the removal is proposed

C. Receive notification of the AGM/EGM where the removal is proposed

D. Circulate representations to members

B. Estimate of the total likely misstatement is more than materially level

C. Amount of known misstatement is documented in working papers

D. Estimates of the total likely misstatement cannot be made

A. randomly

C. disproportionately

D. inversely