Practice Pakistan's most useful MCQs for competitive exams

Which one of the following is NOT a duty of the auditor?

• (A)  Duty to report to the company’s bankers
• (B)  Duty to report to the members
• (C)  Duty to sign the audit report
• (D)  Duty to report on any violation of law

Answer

Submitted By :Ali Uppal

When an auditor is proposed for removal from office, which one of the following is he NOT permitted to do?

• (A)  Circulate representations to members
• (B)  Apply to the court to have the proposal removed
• (C)  Speak at the AGM/EGM where the removal is proposed
• (D)  Receive notification of the AGM/EGM where the removal is proposed

Answer

Submitted By :Ali Uppal

A sale of Rs. 50.000 to A was entered as a sale to B. This is an example of____________?

• (A)  Error of omission
• (B)  Error of commission
• (C)  Compensating error
• (D)  Error of principle

Answer

Submitted By :Ali Uppal

Which of the following is not true about opinion on financial statements?

• (A)  The auditor should express an opinion on financial statements.
• (B)  His opinion is no guarantee to future viability of business
• (C)  He is responsible for detection and prevention of frauds and errors in financial statements
• (D)  He should examine whether recognised accounting principle have been consistently

Answer

Submitted By :Ali Uppal

International auditing standards are issued by the______________?

• (A)  International Accounting Standards Board
• (B)  International Federation of Accountants
• (C)  International Standards Board
• (D)  Auditing Practices Board

Answer

Submitted By :Ali Uppal

Which of the following is NOT the responsibility of a company’s directors?

• (A)  Reporting to the shareholders on the accuracy of the accounts
• (B)  Establishment of internal controls
• (C)  Keeping proper accounting records
• (D)  Supplying information and explanations to the auditor

Answer

Submitted By :Ali Uppal

The degree of effectiveness of an internal control system depends on:

• (A)  The design of the internal control system and the implementation of the controls
• (B)  The design of the internal controls and the implementation of the control system
• (C)  The implementation of the controls and the correctness of the accounting records
• (D)  The design of the internal control system and the correctness of the accounting records

Answer

Submitted By :Ali Uppal

Which of the following is normally the most reliable source of audit evidence?

• (A)  Internal audit
• (B)  Suppliers’ statements
• (C)  Board minutes
• (D)  Analytical review

Answer

Submitted By :Ali Uppal

According to ISA 500, the strength of audit evidence is determined by which two qualities?

• (A)  Appropriateness & competence
• (B)  Sufficiency & appropriateness
• (C)  Reliability & extensiveness
• (D)  Objectivity & independence

Answer

Submitted By :Ali Uppal

Which of the following are you unlikely to see in the current file of auditors’ working papers?

• (A)  Memorandum & articles of association
• (B)  Audit planning memorandum
• (C)  Summary of unadjusted errors
• (D)  Details of the work done on the inventory count

Answer

Submitted By :Ali Uppal