Debtors are valued at ________________
A. realizable value
B. as per articles of association
C. book value
D. decided by the customer
✅ The correct answer is option C.
________________ incorporates both Accounting and Administrative Controls.
A. internal control
B. internal check
C. statutory audit
D. internal audit
✅ The correct answer is option A.
Audit programme should be ________________
A. flexible
B. rigid
C. oral and flexible
D. oral
✅ The correct answer is option A.
Audit in Depth means ________________
A. none of the above
B. detailed examination of all transactions
C. investigation of all transactions
D. detailed examination of selected transactions
✅ The correct answer is option D.
Analytical Review is ________________
A. an audit technique
B. audit in depth
C. a compliance procedure
D. reporting requirement
✅ The correct answer is option A.
An Audit Programme must be prepared ________________
A. before commencement of an audit
B. after completion of an audit
C. after submission of an audit report
D. during the conduct of an audit
✅ The correct answer is option A.
253. Internal audit is undertaken
A. By independent auditor
B. Statutorily appointed auditor
C. By a person appointed by the management
D. By a government auditor
✅ The correct answer is option C.
254. Which of the following is not a limitation of audit as per AAS4?
A. Objectivity of auditor’s judgment
B. Selective testing
C. Persuasiveness of evidence
D. Limitations of internal control system.
✅ The correct answer is option A.
255. As per AAS4, if auditor detects an error then –
A. He should inform the management.
B. He should communicate it to the management if it is material
C. The auditor should ensure financial statements are adjusted for detected errors.
D. Both (b) and (c)
✅ The correct answer is option D.
259. Concurrent audit is a part of
A. Internal check system
B. Continuous audit
C. Internal audit system
D. None
✅ The correct answer is option C.