Balance sheet audit includes verification of____________?

Related Mcqs:

1. In Pakistan, balance sheet audit is synonymous to___________?

   A. Annual audit
   B. Continuous audit
   C. Detailed audit
   D. Statutory audit

2. ______the audit risks_______the materiality and_________the audit effort.

   A. Lower, Higher, Lower
   B. Lower, Lower, Higher
   C. Higher, Lower, Lower
   D. Lower, Higher, Higher

3. In an audit of financial statements, substantive tests are audit procedures that __________?

   A. May be eliminated for an account balance under certain conditions
   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 test of transactions, test of balance and analytical procedures

4. For what minimum period should audit working papers be retained by audit firm?

   A. For the time period the entity remains a client of the audit firm.
   B. For a period of ten years
   C. For a period auditor opines them to be useful in servicing the client
   D. For the period the audit firm is in existence.

5. _______the audit risk,_______the materiality and _______the audit effort?

   A. Lower, Higher, Lower
   B. Lower, Lower, Higher
   C. Higher, Lower, Lower
   D. Lower, Higher, Higher

6. Concurrent audit is a part of____________?

   A. Internal check system
   B. Continuous audit
   C. Internal audit system
   D. None of these

7. Balance sheet does not include­:_____________?

   A. Verification of assets and liabilities
   B. Vouching of income and expense accounts related to assets and liabilities
   C. Examination of adjusting and closing entries
   D. Routine checks

8. The auditor has serious concern about the going concern of the company. It is dependent on company’s obtaining a working capital loan from a bank which has been applied for. The management of the company has made full disclosure of these facts in the notes to the balance sheet. The auditor is satisfied with the level of disclosure. He should issue___________?

   A. unqualified opinion
   B. unqualified opinion with reference to notes to the accounts
   C. qualified opinion
   D. disclaimer of opinion

9. Verification refers to_________?

   A. Examining the physical existence and valuation of assets.
   B. Examining the journal and ledger
   C. Examination of vouchers related to assets.
   D. None of the above.

10. Audit fess is a part of__________.

    A. works on cost.
    B. selling overhead.
    C. distribution overhead.
    D. administration overhead

    Submitted by: ALIYA NAWAZ