ACC311 Final Term Past Papers by Rana Abubakar Khan

Rana Abubakar Khan

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ACC311 FUNDAMENTALS OF ACCOUNTING

Discuss Purchase order is tested while testing the purchase system of entity. (3)

How control over payments made through cheque while testing the cash system.

What is letter of representation Write a small note on audit of small entities.

Situation is given in one question. we have to identify the weaknesses in cash handling and recommend possible remedies to management (5)

Write 5 valid points which determine invoicing and credit notes are typical control procedures.

What are the auditors responsibility with respect to basic elements of auditors report.

ACC311 quiz 2014

Q1. Standard format of Auditor’s Report as per the Companies Ordinance 1984 is described in which one of the following Legal Forms?

1. Form35A

Q2. IFRS stands for which one of the following?

1. International Financial Reporting Standards

Q3. Which of the following is NOT one of the five major components of internal control?

1. Human resource background checks

Q4. All of the following should be observed and inspected by the auditors during the risk assessment process of an entity EXCEPT:

1. Visit to other companies in the industry

Q5. Which one of the following audit techniques ordinarily provides an auditor with the least assurance about the operating effectiveness of an internal control activity?

1. Inspection of documents and reports

Q6. Which one of the following opinions advocates that the auditor should form an opinion only after obtaining sufficient audit evidence instead of blindly accepting any information given by the management?

1. Auditor’s liability
2. Professional ethics

Correct answer: Professional ethics

Q7. Which one of the following is NOT required as part of the audit process?

1. Procedures to obtain an understanding of the internal control structure

Q8. SECP stands for which one of the following?

1. Securities and Exchange Commission of Pakistan

Q9. One type of analytical procedure is the ‘Trend Analysis’. Which one of the following is the best example of trend analysis?

1. Comparison of inventory levels over the past 3 years

Q10. While conducting operational audit, which one of the following auditing procedures does the auditor primarily rely upon?

1. Analytical procedures

Q11. Which one of the following helps to achieve reasonable assurance about the fairness of financial statements during an audit process?

1. Audit report

Which one of the following cannot be considered as the essential feature of Auditing?

a.

The auditor is responsible for the preparation of the financial statements

2. Which one of the following best describes why an independent auditor is asked to express an opinion on the presentation of financial reports? a. The opinion of an independent party is needed because a company may not be objective with respect to its own financial reports 3. The audit which is a review of any part of an entity’s operating procedures and methods is known as which one of the following?

a.

Operational audits

a. Which one of the following is considered as the formal opinion, or disclaimer thereof, issued by an independent auditor as a result of audit or evaluation performed on a legal entity?

1. Auditor's report

Q5. Which of the following statements is true?

a.

The auditing profession is regulated only by its own professional body

Q6. Which one 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?

a.

Q7. Internal control is primarily established within a company to do which of the following?

1. To prevent fraud in the company affairs

Q8. Fixation of remuneration of auditors can be determined by the following authorities EXCEPT: (Companies Ordinance, 1984)

1. Company secretary
2. A leather goods manufacturing company has started its operations in year 2001. After five years of conducting successful business, it has become a listed company recently. Now, the company is required to hire its first auditors, but neither the directors nor the members could appoint the auditors during the past 4 months since the incorporation of the company.

Select among the following authorities who can appoint the auditors in this situation? (Companies Ordinance, 1984)

a. Company registrar

Q10. A company has hired auditors who have performed the audit process in accordance with the auditing standards, but they fail to present its report. According to the Company law, 1984, the auditors shall be liable for which one of the following liabilities?

a.