A. Identify cases of unrecorded revenue
B. Ensure proper disclosure in the balance sheet
C. Recomputed accrued income on the data of balance sheet
D. Any of these
✅ The correct answer is option A.
SSC
1312. The creditor’s accounts, generally, have credit balance. Debit balance may be due to
A. Advance paid against an order
B. Goods returned
C. Wrong debit to supplier account
D. Any of these
✅ The correct answer is option D.
1313. Which of the following documents is not relevant for vouching cash sales?
A. Daily cash sales summary
B. Salesmen’s summary
C. Monthly statements sent to customers
D. Bank statement
✅ The correct answer is option C.
1314. In order to vouch bought ledger, the auditor obtain confirmations from creditors. The principal reason for the auditor to examine suppliers statements at balance sheet date is to obtain evidence that
A. The supplier exist
B. There are no unrecorded liabilities
C. Recorded purchases actually occurred
D. To link creditors with cash book entries
✅ The correct answer is option B.
1315. The auditor is most likely to examine related party transactions very carefully while vouching
A. Credit sales
B. Sales returns
C. Credit purchases
D. Cash purchases
✅ The correct answer is option C.
1316. Which of the following is most crucial to a purchase department?
A. Reducing the cost of acquisition
B. Selecting supplies
C. Authorizing the acquisition of goods
D. Assuring the quality of goods
✅ The correct answer is option C.
1317. An internal auditor discovered that fictitious purchases have been recorded by the purchase clerk. This indicates absence of which control?
A. Purchase invoices are independently matched with purchase orders and goods received notes
B. Goods received notes requires the signature of individual who authorized the purchase
C. Routine checks are performed by internal auditor fortnightly.
D. Purchase function and production function are clubbed in one department
✅ The correct answer is option A.
1318. In case of sales return, the auditor should examine which documents?
A. Credit notes, advice notes and inward return notes
B. Debit notes, advice notes and inward return notes
C. Purchase invoices, advice notes and inward return notes
D. Credit notes, inspection report and inward return notes
✅ The correct answer is option D.
1319. While vouching, how will the auditor ensure himself that all credit sales transactions have been recorded by the entity?
A. Examining cut-off points
B. Matching entries in the sales book against renumbered sales invoices and goods outward notes
C. Counting the number of invoices and matching the number with entries on sales book
D. Both (a) and (b)
✅ The correct answer is option D.
1320. In order to vouch, which of the expenses, the auditor will examine Bill of Entry?
A. Custom
B. Excise duties
C. Sales tax
D. Income tax
✅ The correct answer is option A.