Stock should be valued at_________?

Related Mcqs:

1. Floating assets are valued at____________?

   A. cost
   B. Market price
   C. Cost or market price whichever is lower
   D. Cost less depreciation

2. Which of the following statements is not true about continuous audit?

   A. It is conducted at regular interval
   B. It may be carried out on daily basis
   C. It is needed when the organization has a good internal control system
   D. It is expensive

3. Internal check is carried on by___________?

   A. Staff specially appointed for the purpose
   B. Internal auditor
   C. Supervisor of the staff
   D. Members of the staff

4. When issuing unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the___________?

   A. Amount of known misstatement is documented in working papers
   B. Estimates of the total likely misstatement is less than materiality level
   C. Estimate of the total likely misstatement is more than materially level
   D. Estimates of the total likely misstatement cannot be made

5. Goods sold on the basis of ‘sales or return ‘ should:

   A. Be included in the stock
   B. Not be included in the stock
   C. Not be checked by auditor
   D. None of the above

6. When is evidential matter, generally, considered sufficient?

   A. When it constitutes entire population
   B. When it is enough to provide a basis for giving reasonable assurance regarding truthfulness
   C. When it is objective and relevant
   D. When auditor collects and evaluates it independently

7. Which of the following is not corroborative evidence?

   A. Minutes of meetings
   B. Confirmations from debtors
   C. Information gathered by auditor through observation
   D. Worksheet supporting consolidated financial statements

8. The quantity of audit working papers complied on engagement would most be affected by__________?

   A. Management’s integrity
   B. Auditor’s experience and professional judgment
   C. Auditor’s qualification
   D. Control risk

9. Which of the following statement is true regarding an auditor’s working papers?

   A. They document the level of independence maintained by the auditor
   B. They should be considered as the principle support for the auditor’s report
   C. They should not contain details regarding weaknesses in the internal control system
   D. They help the auditor to monitor the effectiveness of the audit firm’s quality control

10. Which of the following statement best describes the understanding with respect to ownership and custody of working papers prepared by an auditor?

    A. The working papers may be obtained by third parties when they appear to be relevant to issues raised in litigation
    B. 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.