A. Taking management decisions
B. Preparation of accounting records
C. Preparing tax computations
D. Advising on weaknesses in the internal control systems
Correct Answer: Taking management decisions ✔
Last Updated: July 28, 2019
Related MCQs
-
Which of the following are fundamental ethical principles for professional accountants?
1 Competence
2 Compliance
3 Integrity
4 Objectivity - An auditor should not accept a loan on favourable commercial terms from an audit client because of the threat to his or her independence. The threat would be a__________?
- Which of the following statements is INCORRECT?
- Which of the following is true about written representations?
- Which of the following would you not use as a benchmark for comparison when undertaking analytical procedures?
- What is meant by the expression ‘expectation gap’?
- Which of the following does NOT belong in the auditors’ report?
- Which one of the following is part of the auditor’s function?
- What sort of assurance is provided in a review engagement?
- Which of the following statements is correct?
- For companies required to produce interim financial statements (IFI):
- What is meant by negative assurance?
- The auditor should examine subsequent realization of revenue such as dividends, interest,commission, etc to:__________?
- To test whether sales have been recorded, the auditor should draw a sample from a file of__________?
- Which of the following documents is not relevant for vouching cash sales?
- The client changed method of depreciation from straight line to written down value method. This has been disclosed as a note to the financial statements. It has an immaterial effect on the current financial statements. It is expected, however, that the change will have a significant effect on future periods. Which of the following option should the auditor express?
- Which of the following is true about explanatory notes?
- The auditor has serious concern about the going concern of the company. It is dependent on company’s obtaining a working capital loan from a bank which has been applied for. The management of the company has made full disclosure of these facts in the notes to the balance sheet. The auditor is satisfied with the level of disclosure. He should issue__________?
- When restrictions that significantly affect the scope of the audit are imposed by the client, the auditor generally should issue which of the following opinion?
- The date on auditor’s report should not be__________?
- Auditor of a__________company does not have right to visit foreign branches of the company?
- The branch auditor is appointed by__________?
- The auditor has a right to__________?
- A statutory auditor has a right of access at all times to__________?
- Who out of the following cannot be appointed as a statutory auditor of the company?
- The authority to remove the first auditor before the expiry of term is with__________?
- If a casual vacancy in the office of auditor arises by his resignation it should only be filled by the company in a_________?
- The term of the auditor ship of first auditor would be from the date of appointment till________?
- Who is responsible for the appointment of statutory auditor of a limited company ?
- What is the primary objective of analytical procedures used in the overall review stage of an audit?
- When applying analytical procedures, an auditor could develop independent estimate of an account balance to compare it to__________?
- Which of the following is not an analytical procedure?
- What are analytical procedures?
- The basic assumption underlying the use of analytical procedures is:__________?
- Which of the following statements is most closely associated with analytical procedure applied at substantive stage?
- Analytical procedures issued in the planning stage of an audit, generally?
- In determining the level of materiality for an audit, what should not be considered?
- When issuing unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the__________?
- the audit risk,___the materiality and _______the audit effort?
- Which of the following statements is not correct about materiality?
- Balance sheet does not include:__________?
- Which of the following statements is not true about continuous audit?
- Balance sheet audit includes verification of__________?
- Audit in depth is synonymous for__________?
- In Pakistan, balance sheet audit is synonymous to__________?
- Audit of banks is an example of__________?
- Auditing is what?
- The current file of the auditor’s working papers, generally, should include__________?
- Which of the following statement best describes the understanding with respect to ownership and custody of working papers prepared by an auditor?
- Which of the following statement is true regarding an auditor’s working papers?
- Which of the following factors would least likely affect the quantity and content of an auditor’s working papers