A. Examination of property tax files
B. Inquiry of plant manager
C. Examination of debits to accumulated depreciation
D. All of the above
✅ The correct answer is option D.
SSC
1302. Which of the following are included in test of control?
A. Reperformance and observation
B. Inquiry and analytical procedures
C. Comparison and conformation
D. Inspection and verification
✅ The correct answer is option A.
1303. Which of the following assets is least likely to be subjected to lien?
A. Freehold land
B. Plant and machinery
C. Leasehold property
D. Motor vehicles
✅ The correct answer is option C.
1304. The overall attitude and awareness of an entity’s board of directors concerning the importance of internal control is reflected in
A. Accounting controls
B. Control environment
C. Control procedures
D. Supervision
✅ The correct answer is option B.
1305. An auditor is verifying valuation of building which has been self constructed by the client. Which of the following documents is least relevant to the auditor for verification purposes?
A. Bills of contractor
B. Minutes of meeting of board of directors
C. Certificates of engineer and architect
D. Loan agreement
✅ The correct answer is option B.
1306. If the auditor assesses control risk as high….
A. Document the conclusions
B. Documents the reasons along with conclusions
C. Perform tests of control
D. Perform walk through tests
✅ The correct answer is option A.
1307. The primary purpose of performing tests of control is to provide reasonable assurance that_
A. There are no material misstatements due to fraud or error in financial statement
B. Accounting system is well documented
C. Written evidence is there to support transactions
D. if internal control is effective
✅ The correct answer is option D.
1308. Vendors should be approved by Management before purchase department executes an order. If this is not done, then which of the following situations may arise?
A. Purchases could be made from vendors whose product quality may not be good
B. Purchases may be made from related parties without management’s knowledge
C. Purchases could be made from vendors who may have offered price to manager purchases
D. Any of these
✅ The correct answer is option D.
1309. To test whether sales have been recorded, the auditor should draw a sample from a file of
A. Purchase orders
B. Sales orders
C. Sales invoices
D. Bill of loading
✅ The correct answer is option C.
1310. In case of vouching, the auditor is least likely to examine authorization by appropriate authority in case of –
A. Bad debts written off
B. Sales return
C. Purchase return
D. Discount allowed to customers as per organizational policy
✅ The correct answer is option D.