Question: The branch auditor is appointed by___________?

• 1. Shareholders in an annual general meeting
• 2. Shareholders in general meeting
• 3. Board of directors in board meeting
• 4. Any of the above

Question: Auditor of a___________company does not have right to visit foreign branches of the company?

• 1. Unlimited liability
• 2. Manufacturing
• 3. Banking
• 4. Non­profit making

Question: The date on auditor’s report should not be____________?

• 1. the data of AGM
• 2. later than the date on which the accounts are approved in board’s meeting
• 3. earlier than the date on which the accounts are approved by the management
• 4. Both A and B

Question: When restrictions that significantly affect the scope of the audit are imposed by the client, the auditor generally should issue which of the following opinion?

• 1. Qualified opinion
• 2. Disclaimer of opinion
• 3. Adverse opinion
• 4. Unqualified report with ‘an emphasis of matter’ paragraph;

Question: 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 no

• 1. unqualified opinion
• 2. unqualified opinion with reference to notes to the accounts
• 3. qualified opinion
• 4. disclaimer of opinion

Question: Which of the following is true about explanatory notes?

• 1. These are given by the directors of the company
• 2. These are given to adhere to requirements of section 211.
• 3. These are given by auditors of the company in auditor’s report
• 4. All of the above

Question: The client changed method of depreciation from straight line to written down value method. This has been disclosed as a note to the financial statements. It has an immaterial effect on the current financial statements. It is expected, however, tha

• 1. Unqualified opinion
• 2. Qualified opinion
• 3. Disclaimer of opinion
• 4. Adverse opinion

Question: Which of the following documents is not relevant for vouching cash sales?

• 1. Daily cash sales summary
• 2. Salesmen’s summary
• 3. Monthly statements sent to customers
• 4. Bank statement

Question: To test whether sales have been recorded, the auditor should draw a sample from a file of__________?

• 1. purchase orders
• 2. sales orders
• 3. sales invoices
• 4. bill of loading

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

• 1. identify cases of unrecorded revenue
• 2. ensure proper disclosure in the balance sheet
• 3. recompute accrued income on the data of balance sheet
• 4. Any of these