vu acc311 Mid Term - Quiz No.4
vu acc311 Fundamentals of Auditing Quiz
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Question 2: Which one of the following statements is NOT true about the internal control system of a company?
Internal control is affected by people working in an organization
Internal control is a process of bringing accuracy and improvements in the systems
Internal control system is expected to provide absolute assurance about the performance of a company
Internal control is geared to achieve objectives of financial reporting, compliance and operations
Question 3: IFRS stanfor whione of the following?
Internation Financi Reporting Standards
Internation Financi Recording Systems
Internation Financi Recording Statements
Internation Financi Reporting Systems
Question 4: Who shall fix the remuneration of the auditors, if auditors of a company are appointed by the shareholders?
Directors
Shareholders
Securities and Exchange Commission
Institute of Chartered Accountants of Pakistan (ICAP)
Question 5: Whione of the following audit techniques ordinarily provides auditor with the least assuranabout the operating effectiveness of interncontrol activity?
Inquiry of client personnel
Inspection of documents and reports
Observation of client personnel
Preparation of system flowcharts
Question 6: The books of accounts of a company should be kept at which one of the following offices?
Registered office of the company
Accounts office of the company
Record office of the company
Registrar office
Question 7: If Directors could not appoint the first auditors of a company, then the first auditors shall be appointed by which one of the following authorities? (Companies Ordinance, 1984)
Shareholders
Securities and Exchange Commission
Company secretary
Company registrar
Question 8: What is NOT required as part of the audit process?
Substantive procedures
Tests of control
Assessment of materiality
Procedures to obtain an understanding of the internal control structure
Question 9: When the cash sales should be recorded by the companies in order to achieve control objectives?
Record the cash sales when purchase order is received from the customer
Record the cash sales at the point they are made
Record the cash sales after some period
Record the cash sales weekly
Question 10: While testing the purchase system of an entity, which one of the following control tests may be applied to the Goods Returned Notes by the auditors?
Adherence to authority limits
Evidence of approval of requisitions
Evidence of the sequence check
Proof of the issuance date
