Examination of items of the financial statements – Test 1

Which of the following is not correct w.r.t voucher

Which of the following factor should be considered for examining validity of transactions

Which of the following is not purpose of capital expenditure

Which of the following document is not relevant for vouching of cash sales?

To test whether sales have been recorded, the auditor should draw a sample from a file of

For vouching of which item, the auditor is most likely to examine cost records

Which of the following would prevent double payment of the same voucher?

In order to vouch which of the following expenses, the auditor will examine Bill of Entry?

In case of unclaimed wages, the auditor should examine whether

One case of sales return, the auditor should examine which of the following document

In order to vouch bought ledger, the auditor obtain confirmations from creditors. The principle
reason for the auditor to examine suppliers statements at a balance sheet date is to obtain evidence
that

Which of the following is most crucial to a purchase department?

Vendors should be approved by Management before purchase department executes an order, if this
is not done, then which of the following situation may arise:

The creditor’s accounts, generally, have credited balance. Debit balance may be due to

In case of vouching, the auditor is least likely to examine authorization by appropriate authority in
case of

Which of the following is not true with regard to verification of assets?

Which of the following statements is not true?

Which of the assets is least likely to be subjected to lien

While verifying intangible assets, an auditor would recompute amortization charges and determine
whether amortization period is reasonable. The auditor tries to establish __________________ by doing it

Which of the following controls would ensure that securities are not lost, stolen or diverted?

Which of the following would give the assurance that debtors mentioned on the date of balance
sheet actually exist?

Obtaining trade receivables ageing report and identification of doubtful debts is performed during
audit of accounts receivable balances to address the following balance sheet assertion

Observing inventory being counted and personally performing test counts to verify counts is
performed during audit of inventory balances to address the following balance sheet assertion

Wages paid to workers would always qualify as :

During the course of audit of intangible assets, expenditure incurred during following phase is
generally not capitalized:

Search for unrecorded liability is performed during audit of current liabilities to address the
following balance sheet assertion:

Cut-off testing is performed during audit of sales to address the following income statement
assertion

ABC’s investee company-XYZ declares final dividend for financial year 2016-17 in the meeting of
board of directors held on April 10, 2017. In which financial year should ABC account for the
dividend income :

All inventory units held by the audit entity and that should have been recorded, has been
recognized in the financial statements. The assertion involved is:

Which of the following is not an example of revenue expenditure