What auditors seek in the register of non current assets for each major group of assets?

• A) Details of each item, its cost and depreciation
• B) Details of each item, its cost and accumulated depreciation
• C) Details of each item, its cost and residual value
• D) Details of each item, its cost and capital investment expected returns

Mathematical accuracy of documents or records can be performed for the purpose of obtaining audit evidence with which one of the following resources?

• A) Company resources
• B) Auditor resources
• C) Information technology
• D) Mechanical devices

According to the requirements of auditing standards, the opening of the significant cash receipts by post should be done in the presence of how many responsible officials(s)?

• A) Two individuals
• B) Three individuals
• C) Four individuals
• D) One official

Work in process inventory is directly comparable with;

• A) Total capacity of machine
• B) Total units produced in actual
• C) Input supplied
• D) Required output

Verification of equity is done according to which one of the following law?

• A) International accounting laws
• B) Companies ordinance, 1984
• C) Generally accepted accounting principles
• D) International auditing laws

Which one from the following is a most convenient method to pay salaries and wages of an employee electronically?

• A) All of them
• B) Bank transfer
• C) By cheque
• D) By cash

Which one of the following tests may be applied to the goods returned notes?

• A) Evidence of approval of requisitions
• B) Evidence of a sequence check
• C) Proof of issuance date
• D) Adherence to authority limits

According to the requirements of International Auditing Standards (ISAs), the authority to write off a bad debt should be in which form?

• A) Verbal
• B) Using a legal paper
• C) Photo copied
• D) Written

For getting strong control over cash system salesmen and other personals are required to remit cash and report sales at:

• A) Regular intervals
• B) The end of month
• C) The end of sales target achieved
• D) The end of fulfills the order by customer

Types of control procedures over purchases and payables include the following EXCEPT:

• A) Receipt of goods
• B) Invoicing and returns
• C) Purchase ledger and suppliers
• D) Dispatch of goods

Which of the following should be done with the copies of cancelled invoices in sales system?

• A) Should be dispatched to the customers
• B) Should be discarded
• C) Should be retained
• D) Should be dispatched to the suppliers

Which one of the following control tests may be applied by the auditors to the Payables Ledgers Control Account while testing the purchase system of an entity?

• A) Evidence of authorization of adjustments to payables ledger
• B) Evidence of authorization of controlling transactions
• C) Evidence of authorization of preparing payable ledger entries
• D) Evidence of authorization of adjustments to purchase ledger control account

For maintaining strong inventory control many procedures were adopted. Highlight the procedure which is NOT valid for maintaining strong inventory control;

• A) Control over goods inwards
• B) Control over goods outwards
• C) Control over inventory level
• D) Control over the person who counts the inventory daily

Pay slip of an employee could also show some additional information such as:

• A) All of them
• B) Employee’s social security number
• C) Employee’s National tax number
• D) Employee’s payroll number

When it is more reliable to perform substantive procedures?

• A) Monthly
• B) Weekly
• C) Year end
• D) Bi-monthly

Copies of Purchase order should be retained by the company with the purpose:

• A) To ensure that goods has been properly received
• B) To ensure the “follow up method” in case of late deliveries
• C) Of setting the re-order level
• D) Of evidence used for sales cycle

The letter of representation should be signed by which one of the following authorities?

• A) Chief executive
• B) Finance manager
• C) Chartered accountants
• D) Accounts manager

How often the Bank reconciliations should be prepared?

• A) On a regular basis, at least monthly
• B) On a regular basis, at least weekly
• C) On annual basis
• D) On an interim basis, at least after four months

Which of the following is an integral part of audit at the stage of checking and evaluation of information?

• A) Final report
• B) Internal control questionnaire
• C) Plan of the audit task
• D) None of the given options

If an auditor perform a process such as “compares the production cost with previous month’s cost” than this process is called as;

• A) Test of details
• B) Test of control
• C) Walk through tests
• D) Analytical procedures