1281. Valuation of assets on wrong basis is :

A. Technical error
B. Clerical error
C. Error of principle *
D. Compensation error

1282. Test checking refers to :

A. Testing of accounting records
B. Testing of honesty of employees
C. Intensive checking of a selected number of transaction *
D. Checking of all transactions recorded

1283. Which of the following procedures would be the most appropriate to identify the fraud of teeming and lading ?

A. Reviewing aged-debtor’s listings
B. Debtor’s circularisation *
C. Reviewing bank reconciliation
D. Checking subsequent clearance of debtors

1284. Detection and prevention of error and fraud is the responsibility :

A. Auditor( External)
B. Internal Auditor
C. Management *
D. None of the above

1285. The date of representation letter is normally the date on which :

A. Audit is started
B. The Board of Directors approves the accounts.
C. Review report is endorsed by the examiners *
D. Audit field work is completed

1286. One reason why an auditor uses analytical procedures that focus on the client’s operation is to identify

A lack of proper division of accounting and other financial responsibilities
B. A material weakness in the internal accounting control system
C. Unusual transaction *
D. Non compliance with prescribed control procedure

1287. During the planning phase of the audit, the following methods are likely to be used to identify an abnormal fluctuation in gross profit that suggests the need for extended audit procedures for sales and inventories:

A. A preliminary review of internal accounting control
B. Specialized audit programs
C. Analytical procedures *
D. Tests of transactions and balances

1288. The comparison of the following is an illustration of an analytical procedure:

A. Financial data that includes comparable information about the company’s industry *
B. Accurate invoices and a record of the major expenditures
C. Results of a statistical sample the expected characteristics of the actual population
D. Produced information with comparable information created by manual bookkeeping framework

1289. An auditor ordinarily examines invoice from lawyers primarily in order to :

A. Substantiate accruals
B. Asses the legal ramifications of litigation in progress
C. Gauge how much contingent liabilities *
D. Identify possible unassorted litigation ,claims, and assessments

1290. The letter issued by the auditor to his client describing the weakness in the system observed during his audit is referred to as :

A. Representation letter
B. Management letter *
C. Audit engagement letter
D. None of the above