Balance sheet does not include­:_____________?

Related Mcqs:

1. Balance sheet audit includes verification of____________?

   A. Assets
   C. Income and expense accounts where appropriate
   B. Liabilities
   D. All of the above

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

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

3. 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

4. When applying analytical procedures, an auditor could develop independent estimate of an account balance to compare it to­___________?

   A. client’s unedited account balance
   B. client’s unedited account balance adjusted for trends in the industry
   C. Prior year audited balance
   D. Prior year audited balance adjusted for trends in the industry

5. Auditor of a___________company does not have right to visit foreign branches of the company?

   A. Unlimited liability
   B. Manufacturing
   C. Banking
   D. Non­profit making

6. Which of the following does NOT belong in the auditors’ report?

   A. Introductory paragraph specifying the pages to which the report relates and the accounting convention adopted
   B. Basis of the opinion
   C. Involvement of any specialist
   D. Statement of responsibilities of directors and auditors

7. The main object of an audit is _____________?

   A. Expression of opinion
   B. Detection and Prevention of fraud and error
   C. Both (A) and (B)
   D. Depends on the type of audit.

8. Audit in depth is synonymous for­_____________?

   A. Complete audit
   B. Completed audit
   C. Final audit
   D. Detailed audit

9. The auditor should examine subsequent realization of revenue such as dividends, interest,commission, etc to:­_____________?

   A. identify cases of unrecorded revenue
   B. ensure proper disclosure in the balance sheet
   C. recompute accrued income on the data of balance sheet
   D. Any of these

10. The term ‘Audit’ is derived from a Latin word “audire” which means___________?

    A. To inspect
    B. To examine
    C. To hear
    D. To investigate