Higher Study | Accounting and Auditing | Financial Statements Analysis

Which of these statements is true?

ক

The standard k-ε model and the RNG k-ε model are realizable

খ

Neither the standard k-ε model nor the RNG k-ε model is realizable

গ

The standard k-ε model is realizable but not the RNG k-ε model

ঘ

The RNG k-ε model is realizable but not the standard k-ε model

What is the prime objective of an audit in view of Section 129 (1) of Companies Act 2013 ?

ক

To ascertain that the financial statements show a true and fair view of its financial position and earnings

খ

To complete the audit at the earliest

গ

To sign the financial statement

ঘ

To only check few things without going into details even if there is a suspicion

Which of the following are the rights of a Statutory Auditor? a) To receive remuneration b) To attend Board of Doctors' Meeting c) To attend the General Meeting d) To visit the branch office Choose the correct answer from the following:

ক

a and b

খ

a, b and d

গ

a, c and d

ঘ

a, b, c and d

Which of the following statements is NOT correct regarding the duties of an auditor?

ক

Physical verification of fixed assets is primarily the responsibility of the auditor

খ

Ownership of fixed assets should be verified by examining the title deed by the auditor

গ

Auditor should ascertain that the assets are in the possession of the client

ঘ

The auditor should satisfy himself that the assets have been valued in the financial statements according to the accounting principles

Which of the following events after the balance sheet date would normally qualify as adjusting events according to AS-4 (Events after balance sheet date)? (A) The insolvency of a customer on the balance sheet date (B) A decline in the market value of investments (C) The declaration of an ordinary dividend (D) The determination of the cost of assets purchased before the balance sheet date Choose the most appropriate answer from the options given below:

ক

(A), (C) and (D) only

খ

(A) and (B) only

গ

(B) and (C) only

ঘ

(A) and (D) only

The accounting standard AS3 (Revised) has become mandatory w.e.f. accounting periods beginning from 01-04-2001 for which of the following enterprise?

ক

Commercial, industrial and business reporting enterprises whose turnover for the accounting period exceeds Rs. 50 crores.

খ

Enterprises whose debt or equity securities are not listed on a recognised stock exchange.

গ

All enterprises whose turnover exceeds Rs. 2 crores.

ঘ

Only banking and insurance

Which one of the following is a structured review of the systems and procedures of an organisation in order to evaluate whether they are being conducted efficiently and effectively?

ক

Financial audit

খ

Safety audit

গ

Management audit

ঘ

Cost audit

Which among the following are NOT qualified to be appointed as auditor of a company? a) An individual who is a Chartered Accountant and holds a Certificate of Practice as per CA Act, 1949 b) A limited liability partnership firm, which has all partners as Chartered Accountants c) Officer or employee of a company who is qualified Chartered Accountant degree holder too d) Any Chartered Accountant whose appointment will result in the person being the auditor of more than 10 companies Choose the most appropriate option:

ক

a) and b)

খ

b), c) and d)

গ

c) and d)

ঘ

a), b) and d)

Which of the following statements is INCORRECT with respect to basic principles issued by SA 200 that govern the auditor's responsibilities whenever an audit is carried out?

ক

The auditor should not obtain knowledge about the client's business to determine the nature, timing and the extent of the audit procedures.

খ

Proper working papers should be maintained by the auditor to evidence the audit work.

গ

The auditor should not disclose the client's information to anybody without the client's permission or under any regulatory requirement.

ঘ

The auditor should be straightforward, honest, sincere and free from any influence on his audit work.

With respect to accounting for foreign branches, which of the following statements is correct?

ক

For the purpose of accounting, AS 12 (revised 2003) classifies the foreign branches into two types: (a) Integral Foreign Operation, (b) Memorandum Foreign Operation.

খ

For the purpose of accounting, AS 16 (revised 2003) classifies the foreign branches into two types: (a) Integral Foreign Operation, (b) Memorandum Foreign Operation.

গ

For the purpose of accounting, AS 13 (revised 2003) classifies the foreign branches into two types: (a) Integral Foreign Operation, (b) Non-Integral Foreign Operation.

ঘ

For the purpose of accounting, AS 11 (revised 2003) classifies the foreign branches into two types: (a) Integral Foreign Operation, (b) Non-Integral Foreign Operation.

Which of the following is not a technique of verification?

ক

Inspection

খ

Beyond Budgeting

গ

Observation

ঘ

Confirmation

With respect to verification, which of the following statements is INCORRECT?

ক

The auditor should confirm that all assets of the company physically exist on the date of the Balance Sheet.

খ

The auditor is not required to verify whether the asset is subject to any charge or lien.

গ

The auditor has to verify that assets are in the possession of the company on the date of the Balance Sheet.

ঘ

The auditor should find out whether any event after the date of the Balance Sheet has affected any items of assets and liabilities.

Which Section of Companies Act 2013 gives right to the auditor to access at all times to the books of account and vouchers of the company ?

ক

Section 145

খ

Section 143 (1)

গ

Section 143 (2)

ঘ

Section 144

Which of the following is NOT required while vouching Purchase Return?

ক

Examine Credit Notes

খ

Examine Purchase return book

গ

Examine Debit Notes

ঘ

Examine cut off points

Which of the following is NOT part of the process of management audit? 1. Identification of responsibility center 2. Review of performance of each responsibility center 3. Review of organizational structure 4. Investigating the depreciation method and its application on fixed assets in the company

ক

1

খ

2

গ

3

ঘ

4