ACC311 Final Term MCQs

FINALTERM EXAMINATION Fall 2008

ACC311- Fundamentals of Auditing (Session - 1)

Q1. 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

Q2. Auditors conduct auditing in accordance with :

International Financial Reporting Standards Local pronouncements/Legislations Financial Accounting Standards Board All of the given options

Q3. Which of the following primary assertions is satisfied when an auditor ensures that there are no unrecorded assets, liabilities, transactions or events or undisclosed items in the client s financial records?

Valuation Completeness Existence Rights and obligations

Q4. 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 systemt 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

Q5. Who shall fix the remuneration of the auditors, if auditors of a company are appointed by the shareholders? (Companies Ordinance, 1984)

Directors Shareholders Securities and Exchange Commission

Institute of Chartered Accountants of Pakistan (ICAP)

Q6. 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

Q7. The books of accounts of a company should be kept at which one of the following offices? (Companies Ordinance, 1984)

Registered office of the company Accounts office of the company Record office of the company Registrar office

Q8. Which one of the following is also called as books of secondary entries ?

Journal Voucher Ledger Memo

Q9. According to Section 236, Director s report should be attached to which of the following financial statement? (Companies Ordinance, 1984)

Balance sheet Profit and loss account Statement of retained earnings Statement of cash flows