Auditing

A. Expenses paid on installation of a plant.

B. Cost of dismantling a building in case a new building is to be constructed on the land

C. Legal expenses incurred to defend a suit related to title of patent. The suit has been lost

D. The fees paid to engineer who constructed the plant.

A. AAS7

B. AAS8

C. AAS9

D. AAS3

A. The auditor has ascertained that the balance is materially correct when in actual fact it is not

B. The auditor concludes the balance is materially misstated when in actual fact is not

C. The auditor has rejected an item from sample which was not supported by documentary evidence

D. He applies random sampling on data which is inaccurate and inconsistent

A. Risk of over reliance

B. Risk of incorrect rejection

C. Risk of incorrect acceptance

D. Both (a) and (c)

A. The auditor concludes balance is materially correct when in actual fact it is not

B. The auditor concludes that the balance is materially misstated when in actual fact it not

C. The auditor has rejected an item for sample which was material

D. None of the above

A. Authenticated copy of relevant minutes of meetings may be regarded as management representation

B. It should always be in working

C. It may be dated prior to the report date

D. It should be addressed to the auditor

A. Minutes of meetings

B. Confirmations from debtors

C. Information gathered by auditor through observation

D. Worksheet supporting consolidated financial statements

A. When it constitutes entire population

B. When it is enough to provide a basis for giving reasonable assurance regarding truthfulness

C. When it is objective and relevant

D. When auditor collects and evaluates it independently

A. They document the level of independence maintained by the auditor

B. They should be considered as the principle support for the auditor’s report

C. They should not contain details regarding weaknesses in the internal control system

D. They help the auditor to monitor the effectiveness of the audit firm’s quality control

A. The reliability of audit evidence and its relevance in meeting the audit objective

B. The objectivity and integrity of the auditor

C. The quantity of audit evidence

D. The independence of the source of evidence