151. What is the primary objective of analytical procedures used in the overall review stage of an audit?
A. To help to corroborate the conclusions drawn from individual components of financial statements
B. To reduce specific detection risk
C. To direct attention to potential risk areas
D. To satisfy doubts when questions arise about a client’s ability to continue

152. Of the following, which is the least persuasive type of audit evidence?
A. Bank statements obtained from the client
B. Documents obtained by auditor from third parties directly.
C. Carbon copies of sales invoices inspected by the auditor
D. Computations made by the auditor

153. In an audit of financial statements, substantive tests are audit procedures that___________?
A. may be eliminated for an account balance under certain conditions
B. are designed to discover significant subsequent events
C. will increase proportionately when the auditor decreases the assessed level of control risk
D. may be test of transactions, test of balance and analytical procedures

154. The nature, timing and extent of substantive procedures is _________ related to assessed level of control risk?
A. randomly
B. disproportionately
C. directly
D. inversely

155. Which of the following statements is, generally, correct about the reliability of audit evidence?
A. To be reliable, evidence should conclusive rather than persuasive
B. Effective internal control system provides reliable audit evidence
C. Evidence obtained from outside sources routed through the client
D. All are correct.

156. When is evidential matter, generally, considered sufficient?
A. When it constitutes entire population
B. When it is enough to provide a basis for giving reasonable assurance regarding truthfulness
C. When it is objective and relevant
D. When auditor collects and evaluates it independently

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157. Depreciation in spirit is similar to?
A. Depletion
B. Amortization
C. Depression
D. None of these

158. Funds Flow Statement and sources and application statement are
A. Synonymous
B. Antagonistic
C. Bookkeeping
D. None of these

159. Balance Sheet is always prepared
A. For the year ended
B. As on a specified date
C. Mid of year
D. None of these

160. Quick Ratio can be computed as under
A.Quick . Assets/Quick Liabilities
B.Quick . Liabilities/Current Assets
C. Current Assets/ Current Liabilities
D. None of these

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