91. When the account balance of “cash at bank” is verified, which from the following audit procedure(s) has/have to be performed?
I. Confirmation from the relevant banks
II. Bank reconciliations
(A) I only
(B) II only
(C) I or II
(D) I and II
92. The outcome of an audit is a/an
(A) certificate
(B) report
(C) income and expenses
(D) profit or loss
93. Final audit is performed
(A) after the year ends
(B) near the year ends
(C) after 9 months of the year
(D) only if interim audit has problems
94. Scope of financial audit is__________?
A. Financial information
B. Non-financial information
C. Both (a) and (b)
D. None of these
95. IFRS 9 explains about?
A. Inventory
B. Accounts Payable
C. Accounts Receivable
D. Expenses
96. Audit fess is a part of__________.
A. works on cost.
B. selling overhead.
C. distribution overhead.
D. administration overhead
97. Which of the following statements is INCORRECT?
A. An auditor may serve on the board of directors of an audit client.
B. An auditor who is an immediate family member of the director of an audit client must not be assigned to the audit team.
C. Purchasing goods from an audit client on normal commercial terms does not create a threat to the auditor’s independence.
D. An auditor who was recently a director of an audit client must not be assigned to the audit team for that client.
98. An auditor should not accept a loan on favorable commercial terms from an audit client because of the threat to his or her independence. The threat would be a___________?
A. Self-interest threat
B. Self-review threat
C. Advocacy threat
D. Familiarity threat
99. Which of the following are fundamental ethical principles for professional accountants?
1 Competence
2 Compliance
3 Integrity
4 Objectivity
A. 1, 2 and 3 only
B. 1, 3 and 4 only
C. 2, 3 and 4 only
D. 1, 2 and 4 only
100. Which one of the following may auditors NOT perform for their client?
A. Taking management decisions
B. Preparation of accounting records
C. Preparing tax computations
D. Advising on weaknesses in the internal control systems