Audit 2017 Past Paper with Answers

Practice the Audit 2017 past paper with 99 solved MCQs, answers and topic coverage.

99 solved MCQs across 1 approved paper

SENIOR AUDITOR PAST PAPER 2017Auditor · 2017

Which of the following is least important as a measure of short-term liquidity?Answer: Debt ratio Which of the following accounts would never appear in the after-closing trial balance?Answer: Both A and B Debentures are a company’s _____?Answer: Liability An example of financing activities in the context of a cash flow statement is ______?Answer: Long-term deposit If the profit is 1/4 of the sales, then it is _______?Answer: 1/3 of the cost price A large organization with separate legal status is known as ______?Answer: Limited Company Control risk is assessed at _______?Answer: Financial statement assertion leve When counting cash on hand, the auditor should ______?Answer: Temporary advances to employees are counted to calculate balance of cash in hand In order to vouch which of the expenses, the auditor will examine the bill of entry?Answer: Custom The statutory auditor of a government company submits his report to ______?Answer: The C & AG Concurrent audit is a part of ______?Answer: Internal audit system The risk of management fraud increases in the presence of ______?Answer: Management incentive based on sales done in a quarter The main object of an audit is ______?Answer: Expression of opinion In Pakistan, financial statements of limited companies are prepared according to ______?Answer: Both A and B Which of the following statements is TRUE? Assets = Liabilities - Capital, Assets = Capital + Liabilities,Capital = Assets - Liabilities, None of theseAnswer: Assets = Capital + Liabilities The cost of the asset after expiry of its useful life is called ______?Answer: Residual Value Calculate the gross profit/loss if sales Rs. 60000, cost of sales Rs. 50000, opening stock Rs. 10000; purchases Rs. 40000; wages Rs. 20000, and office rent Rs. 10000.Answer: Profit Rs. 10000 Trading & Profit & Loss account and balance sheet is prepared from ______?Answer: Trial balance A business asset of Rs. 43142 and owner’s equity Rs.13210. What is the amount of liabilities?Answer: Rs. 31102 Stock in trade is a ______?Answer: Current assets Auditing is a branch of ______?Answer: Social Science Debenture represents ______?Answer: Long-term liabilities of a business Current ratio is calculated to ______?Answer: Measure the liquidity of concern Leaders perform ______?Answer: Decisional roles Income tax rates are the same for ______?Answer: Banking Companies Stratified audit sample means ______?Answer: Items carefully selected from each group Process of costing is relevant to _______?Answer: Both A and B Deferred taxation is _______?Answer: Fixed Liabilities Depreciation is provided on ______?Answer: Fixed Asset Assets are held for the purpose of _______?Answer: Earning revenue