Reference Notes for Management
Options:
| a) Equity shares or debentures of the company b) Equity shares carrying voting of the company c) Shares carrying voting rights of the company d) Security carrying voting rights of the company |
d) Security carrying voting rights of the company
Options:
| a) A partnership firm can be appointed as a statutory auditor of limited company b) Appointment can be made in the name of the firm c) Majority of the partners should be practicing in India d) All partners should be chartered accountants |
c) Majority of the partners should be practicing in India
Options:
| a) Directors of the company b) Members of the company c) The Central Government d) All of the above |
b) Members of the company
Options:
| a) Sample size b) Audit risk c) Materiality d) Expected error |
c) Materiality
Options:
| a) Projected error b) Tolerable error c) Expected error d) Both (b) and (c) |
d) Both (b) and (c)
Options:
| a) Does not support the auditor’s planned assessed level of control risk when the true operating effectiveness of the control structure justifies such an assessment b) Supports the auditor’s planned assessed level of control risk when the actual position does not warrant such reliance c) Is not supported by adequate documents d) both (a) & (c) |
a) Does not support the auditor’s planned assessed level of control risk when the true operating effectiveness of the control structure justifies such an assessment
Options:
| a) Sample should be drawn form population b) Every strata of population should be represented in the sample c) Every item in the population has an equal chance of being selected in the sample d) Items should be selected at ‘n’ th interval |
c) Every item in the population has an equal chance of being selected in the sample
Options:
| a) Lower the sampling risk greater the sample size b) Smaller the tolerable error, greater the sample size c) Lower the expected error, smaller the sample size d) All are correct |
d) All are correct
Options:
| a) Systematic sampling b) Random sampling c) Haphazard sampling d) None |
Options:
| a) mathematically measure risk b) eliminate the need for judgmental sampling c) defines the values of tolerable error d) all of the them |
a) mathematically measure risk
Options:
| a) a flowchart of the internal controls b) Organization charts c) a copy of financial statements d) copies of bond and debentures |
c) a copy of financial statements
Looking for the answer to the question below related to Audit Preparation ? Which of the following statement best describes the understanding with respect to ownership and custody of working papers prepared by an auditor? Options: a) The working papers may be obtained by third parties when they appear to be relevant to issues raised … Read more