461. 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
462. Which of the following statement best describes the understanding with respect to ownership and custody of working papers prepared by an auditor?
A. The working papers may be obtained by third parties when they appear to be relevant to issues raised in litigation
B. The safe custody of working papers is the responsibility of client, if kept at his premises
C. The working papers must be retained by an audit firm for a period of 10 years
D. Successor auditors may have access to working papers of the predecessor auditors. The approval of client is not required
463. Which of the following methods of sample selection is least suitable for extrapolating results to the population?
A. Systematic sampling
B. Random sampling
C. Haphazard sampling
464. Risk of under reliance is the risk that the sample selected to test controls___
A. Does not support the auditor’s planned assessed level of control risk when the true operating effectiveness of the control structure justifies such an assessment
B. Supports the auditor’s planned assessed level of control risk when the actual position does not warrant such reliance
C. Is not supported by adequate documents
D. both (a) & (c)
465. n case the directions fail to appoint first auditor (s), the shareholders shall appoint them at…..by passing a resolution
A. a general meeting
B.first annual general meeting
C. statutory meeting
D. annual general meeting
466. ICICI prudential, a life insurance company, holds thirty two percent of subscribed share capital of Delta Ltd. The statutory auditor of Delta Ltd. would be appointed by__
A. ordinary resolution
B. Special resolution
C. either of the above
467. The S & AG, some years ago, gave adverse comments on expenditure incurred on buying coffins for soldiers killed in a war. In his opinion, the coffins cases imported could have been replace with less expensive, domestically produced ones. This is an aspect of –
A. Audit of sanctions
B. Audit of stores and stocks
C. Propriety audit
D. Both (b) and (c)
468. An auditor is verifying valuation of building which has been self constructed by the client. Which of the following documents is least relevant to the auditor for verification purposes?
A. Bills of contractor
B. Minutes of meeting of board of directors
C. Certificates of engineer and architect
D. Loan agreement
469. Which of the following assets is least likely to be subjected to lien?
A. Freehold land
B. Plant and machinery
C. Leasehold property
D. Motor vehicles
470. An analysis of fixed assets account has revealed possibility of unrecorded sale of plant and machinery. Which of the following audit procedures may be adopted to discover it?
A. Examination of property tax files
B. Inquiry of plant manager
C. Examination of debits to accumulated depreciation
D. All of the above
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