Description : Documentary evidence originating from third parties and held by the entity.
Last Answer : Documentary evidence originating from and held by the third party.
Description : Consider the following categories of documentary evidence from the point of view of the degree of their reliability.
Last Answer : Documentary evidence originating from and held by the entity.
Description : Which of the following statements is not a distinction between independent auditing and internal auditing? a. Independent auditors represent third party users external to the auditee entity, ... validity and relevance of evidence, internal auditors are concerned almost exclusively with validity.
Last Answer : Although independent auditors strive for both validity and relevance of evidence, internal auditors are concerned almost exclusively with validity.
Description : According to going concern concept a business entity is assumed to have– (A) A long life (B) A small life (C) A very short life (D) A definite life
Last Answer : Answer: A long life
Description : Recording of capital contributed by the owner as liability ensures the adherence of principle of– (A) Consistency (B) Going concern (C) Separate entity (D) Materiality
Last Answer : Answer: Separate entity
Description : In which of the following cases no notice is required to be given to adverse pary before producing secondary documentary evidence? a) When original is destroyed b) When original is immovable c) When original is electronic record d) When original is in possession of adverse party
Last Answer : d) When original is in possession of adverse party
Description : Which one of the following statements is false ? (A) The Open Market Operations involve the sale or purchase of govt. securities by the Central Bank (B) The RBI manages longterm liquidity through ... change the proportion of govt. securities held by the RBI, Commercial Banks and Co-operative Banks
Last Answer : Answer: The RBI manages longterm liquidity through rapos
Description : Which one of the following statements is false ? (A) A Demat Share' is held by the depository on behalf of the investor whereas a Physical Share' is held by the investor himself (B) There is no ... number like a Physical Share' (D) The Demat Share' cannot be converted into a Physical Share'
Last Answer : Answer: The ‘Demat Share’ cannot be converted into a ‘Physical Share’
Description : Stock should include– (A) Goods held as security (B) Goods held as consignee (C) Goods with customers for approval on sale or return basis (D) Goods sold but not delivered
Last Answer : Answer: Goods held as consignee
Description : A meeting of the shareholders held only once during the life time of the company is known as– (A) Meeting of the Directors (B) Meeting of the Creditors (C) Extraordinary General Meeting (D) Statutory Meeting
Last Answer : Answer: Statutory Meeting
Description : XYZ Ltd. issued 10,000 shares of Rs. 100 each at Rs. 120 per share with Rs. 25 on application, Rs. 45 on allotment including premium, Rs. 20 on first call and Rs. 30 on final call. Govind who held 200 shares did not pay ... forfeiture ? (A) Rs. 14,000 (B) Rs. 10,000 (C) Rs. 9,000 (D) Rs. 4,000
Last Answer : Answer: Rs. 10,000
Description : If the auditor learns that an entity is inappropriately using the auditor's name in association with financial information, he/she should: a. Remain silent. b. Seek legal advice if necessary. c ... known third party users of the inappropriate use of his/her name in connection with the information
Last Answer : Require management to cease doing so.
Description : Which one of the following is not correct in respect of the Theory X? (A) It emphasizes that most average human beings avoid to be led, want to lead (B) According to the theory X ... achieve organizational goals (D) The theory X assumes that most individuals have little ambition and want security
Last Answer : Answer: It emphasizes that most average human beings avoid to be led, want to lead
Description : What is a person or party to whom an assignment is made called?
Last Answer : Assigne
Description : Any person aggrieved by any decision or order of the National Company Law Appellate Tribunal can appeal to which one of the following and within how much period ? (A) High Court, within 30 days (B) ... Court within 60 days (C) SEBI within 90 days (D) Department of Companies Affairs within 60 days
Last Answer : Answer: Supreme Court within 60 days
Description : Mark the correct option a) All statements which the court permits or requires to be made before it by witnesses, in relation to matters of fact under inquiry such statements are called oral evidence b) ... documentary evidence c) Both the A and B are correct d) Neither A nor B are correct.
Last Answer : c) Both the A and B are correct
Description : When performing a compilation engagement, the accountant is required to a. Make inquiries of management to assess the reliability and completeness of the information provided. b. Assess internal controls. ... explanations. d. Obtain a general knowledge of the business and operations of the entity.
Last Answer : Obtain a general knowledge of the business and operations of the entity.
Description : Is it obvious or not obvious why some stores charge customers (annual for eg.) a fee in order to sell them their products?
Last Answer : I worked in a grocery store that was a Franchise and that company charges a fee to have the ideal placement on the shelves, or near the cash register , knowing that some people (or most) buy on impulse. That is why adverting of a product with colorful and eye catching themes becomes very important .
Description : Which of the following statements is correct? a. The fair presentation of audited financial statements in accordance with applicable financial reporting framework is an implicit part of the auditor's ... those who provide audit and tax services, also provide consulting services to their clients.
Last Answer : Most CPAs, including those who provide audit and tax services, also provide consulting services to their clients.
Description : The most recent form of retail distribution is– (A) Mail order business (B) Chain stores (C) Departmental stores (D) Sky shopping
Last Answer : Answer: Sky shopping
Description : Due to coordination– (A) There is a unity of order (B) There is a unity of direction (C) There is a leadership (D) Employees are motivated
Last Answer : Answer: There is a unity of order
Description : In order to reduce the risk of heavy insurance the insurer passes on some business to the other company, it is called– (A) Reinsurance (B) Double Insurance (C) Joint Insurance Policy (D) Separate Insurance
Last Answer : Answer: Reinsurance
Description : Export procedure begins with– (A) Indent (B) Shipping order (C) Marine insurance (D) None of these
Last Answer : Answer: Indent
Description : A public corporation is set up– (A) By a Special Act of Parliament (B) By a special order of the Government (C) Under Indian Companies Act, 1956 (D) By none of the above
Last Answer : Answer: By a Special Act of Parliament
Description : What is a Garnishee order?
Last Answer : It is a court order attaching the funds of the judgement debtor in the hands of a third party in favour of the judgement-creditor.
Description : Which of the following statements is correct? a. Sufficiency refers to the quality of evidence, while appropriateness refers to the quantity of evidence. b. The reliability of evidence is ... are honest and have integrity relieves the auditor of the need to maintain professional scepticism.
Last Answer : The performance of consulting services for audit clients does not, in and of itself, impair the auditor’s independence
Description : A copy compared with a copy of a letter made by a copying machine is ___ evidence of the contents of the letter (a) Documentary (b) Primary (c) Secondary (d) None of these.
Last Answer : (c) Secondary
Description : Point out the incorrect answer. Evidence may be (a) Direct and indirect (b) Primary and secondary (c) Oral and documentary (d) Procedural and substantive
Last Answer : (d) Procedural and substantive
Description : Evidence given by a dumb witness in the court by writing or signs shall be deemed to be (a) Documentary evidence (b) Oral evidence (c) Neither A nor B (d) None of these
Last Answer : (b) Oral evidence
Description : Evidence under the Indian evidence act means and includes a) Oral and documentary evidence or both b) Documentary evidence c) Primary and circumstantial evidence d) Primary evidence
Last Answer : a) Oral and documentary evidence or both
Description : Of documentary evidence explained in a) Chapter IV of Evidence Act b) Chapter III of Evidence Act c) Chapter V of Evidence Act d) None of these
Last Answer : c) Chapter V of Evidence Act
Description : Indian evidence act includes a) Oral evidence b) Documentary evidence c) Electronic records d) All the above
Last Answer : d) All the above
Description : Evidence under the Indian Evidence Act means & includes (a) Ocular evidence (b) Documentary evidence (c) Ocular and documentary evidence both (d) Ocular evidence based on documents only.
Last Answer : (c) Ocular and documentary evidence both
Description : he steps in the preparation of a worksheet do not include a. analyzing documentary evidence. b. preparing a trial balance on the worksheet. c. entering the adjustments in the adjustment columns. d. entering adjusted balances in the adjusted trial balance columns.
Last Answer : a. analyzing documentary evidence.
Description : Which of the following hold the highest value of evidence in the court? A. Documentary B. Demonstrative C. Testimonial D. Real
Last Answer : D. Real
Description : Which of the following hold the highest value of evidence in the court? a. Documentary b. Demonstrative c. Testimonial d. Real
Last Answer : d. Real
Description : Which among the following is the societal obligation of accounting ? (A) To ascertain profit correctly (B) To maintain the records of the assets and liabilities of organisation (C) To establish effective organizational control (D) To be helpful in correct tax assessment
Last Answer : Answer: To be helpful in correct tax assessment
Description : The matrix management model is based on a matrix of values between 0 and 9 for two primary variables. Which of the statements given above is/are correct ? (A) 1 only (B) 2 only (C) Both 1 and 2 (D) Neither 1 nor 2
Last Answer : Answer: Both 1 and 2
Description : Which one of the following statements about preparation of financial statements of a limited liability company is correct ? (A) Financial statements should be prepared according to the cash basis ... Financial statements should be prepared according to both the accrual and cash basis of accounting
Last Answer : Answer: Financial statements should be prepared according to the accrual basis of accounting only
Description : Which one of the following statements is not correct ? (A) Business firms combine to avoid wasteful competition (B) Business combination is possible only among joint stock companies (C) Business ... firms (D) During economic depression, small firms are absorbed by financially sound large firms
Last Answer : Answer: Business combination is possible only among joint stock companies
Description : The scheme allows the transfer of scrip once the export obligation is complete. Which of the statements given above is/are correct ? (A) 1 only (B) 2 only (C) Both 1 and 2 (D) Neither 1 nor 2
Description : Legitimate power is the right to manage derived from delegation based on ownership or property rights. Which of the statements given above is/are correct ? (A) 1 only (B) 2 only (C) Both 1 and 2 (D) Neither 1 nor 2
Description : Which one of the following statements is correct ? When creditors' velocity or creditors' turnover is higher as compared to debtors' velocity, it would (A) improve liquidity (B) reduce liquidity (C) have no effect on liquidity (D) improve financial position
Last Answer : Answer: have no effect on liquidity
Description : Which one of the following statements is correct ? (A) Audit of an educational institution is compulsory if it is run by a charitable trust (B) A club is treated as a commercial establishment ( ... who belongs to accountancy profession (D) Audit of a charitable trust is not compulsory under law
Last Answer : Answer: Audit of an educational institution is compulsory if it is run by a charitable trust Free
Description : Which one of the following statements is correct ? (A) Internal audit and Management audit are the same (B) Internal audit and statutory audit are the same (C) Internal audit is compulsory in all cases (D) Statutory audit of company accounts is compulsory
Last Answer : Answer: Statutory audit of company accounts is compulsory
Description : In an engagement to perform agreed-upon procedures, an auditor is engaged to: a. Use accounting expertise as opposed to auditing expertise to collect, classify, and summarize financial information. b ... and the entity and any appropriate third parties have agreed and to report on factual findings
Last Answer : Carry out those procedures of an audit nature to which the auditor and the entity and any appropriate third parties have agreed and to report on factual findings
Description : ________ is a temporary pass through account held by a third party during the process of a transaction between two parties. A. Savings Bank Account B. Current Account C. Deposit Account D. Escrow Account E. None of the Above
Last Answer : D. Escrow Account Explanation: Escrow Account: Account in which funds are accumulated for specific disbursements. It is a temporary pass through account held by a third party during the process of a transaction between two parties.
Description : The auditor's defense of contributory negligence is most likely to prevail when a. Third party injury has been minimal. b. The client is privately held as contrasted with a public company ... statements. d. The auditor fails to detect fraud resulting from management override of the control structure
Last Answer : The auditor fails to detect fraud resulting from management override of the control structure
Description : The auditor's defense of contributory negligence is most likely to prevail when a. Third party injury has been minimal. b. The client is privately held as contrasted with a public company. ... . d. The auditor fails to detect fraud resulting from management override of the control structure.
Last Answer : The auditor fails to detect fraud resulting from management override of the control structure.
Description : Which of the following is one of the limitations of an audit? a. Nature of evidence obtained b. Inadequacy of the accounting records c. Confidentiality of information d. Scope limitations imposed by the entity
Last Answer : Nature of evidence obtained