Fani Warraich MANAGEMENT SCIENCES - Audit & Assurance

In the context of audit sampling, what is meant by the term "sampling risk"?

A. The risk that the sample selected may not be representative of the population. B. The risk that the auditor may fail to detect material misstatements in the financial statements. C. The risk that the auditor's procedures may not be performed effectively. D. The risk that the auditor may not maintain independence and objectivity.

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Explanation

Sampling risk arises from the possibility that the sample selected for testing may not accurately represent the characteristics of the entire population.

Fani Warraich MANAGEMENT SCIENCES - Audit & Assurance

Which of the following audit procedures is designed to test the existence and completeness assertion for inventory?

A. Confirmation with suppliers. B. Inquiry with management. C. Observation of physical inventory count. D. Analytical procedures.

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Explanation

Observing the physical inventory count is a substantive procedure commonly used to test the existence and completeness of inventory.

Fani Warraich MANAGEMENT SCIENCES - Audit & Assurance

Which of the following would NOT be considered a control deficiency in internal controls?

A. Lack of segregation of duties. B. Inadequate documentation of procedures. C. Existence of related-party transactions. D. Ineffective monitoring of controls.

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Explanation

Related-party transactions may or may not represent control deficiencies, depending on their nature and the adequacy of disclosure in the financial statements.

Fani Warraich MANAGEMENT SCIENCES - Audit & Assurance

Which of the following types of audit opinion indicates that the financial statements are free from material misstatement?

A. Adverse opinion. B. Qualified opinion. C. Unqualified opinion. D. Unqualified opinion.

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Explanation

An unqualified opinion, also known as a clean opinion, indicates that the financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows of the entity.

Fani Warraich MANAGEMENT SCIENCES - Audit & Assurance

Which of the following sampling methods is commonly used in audit testing to select items for examination?

A. Convenience sampling. B. Stratified sampling. C. Judgmental sampling. D. Judgmental sampling.

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Explanation

Stratified sampling involves dividing the population into subgroups and then selecting samples from each subgroup, ensuring representation across different characteristics.

Fani Warraich MANAGEMENT SCIENCES - Audit & Assurance

Which of the following is a key responsibility of the auditor during the planning phase of an audit engagement?

A. Issuing an audit opinion on the financial statements. B. Communicating audit findings to management. C. Identifying areas of potential risk of material misstatement. D. Testing internal controls to detect fraud.

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Explanation

During the planning phase, auditors assess the risks of material misstatement in the financial statements and develop an audit strategy to address those risks.

Fani Warraich MANAGEMENT SCIENCES - Audit & Assurance

Which of the following best describes the primary objective of an external audit?

A. Detecting and preventing fraud within the organization. B. Providing assurance on the reliability of financial statements. C. Evaluating the efficiency of internal control systems. D. Advising management on business strategiesb.

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Explanation

External audits aim to provide independent assurance to stakeholders regarding the reliability of financial statements.

Diginy Dash MANAGEMENT SCIENCES - Financial Accounting

Double Entry Book Keeping was fathered by

A. Yoyji Ijiri. B. Luca Paioli. C. Yoyji Ijiri. D. Yugene Fama.

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Diginy Dash MANAGEMENT SCIENCES - Financial Accounting

In balance sheet accumulated loss of company shown as

A. an asset. B. a liability. C. an expense. D. a revenue.

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Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES - Public Finance

Pakistan follows the following budgeting system at Federal level

A. Procedural budgeting. B. Cost benefit budgeting. C. Incremental / decremental budgeting. D. None of these.

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Explanation

For ready reference read here : http://www.grbi.gov.pk/Documents/BudgetaryReform.pdf pg 31

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In the context of audit sampling, what is meant by the term "sampling risk"?

Which of the following audit procedures is designed to test the existence and completeness assertion for inventory?

Which of the following would NOT be considered a control deficiency in internal controls?

Which of the following types of audit opinion indicates that the financial statements are free from material misstatement?

Which of the following sampling methods is commonly used in audit testing to select items for examination?

Which of the following is a key responsibility of the auditor during the planning phase of an audit engagement?

Which of the following best describes the primary objective of an external audit?

Double Entry Book Keeping was fathered by

In balance sheet accumulated loss of company shown as

Pakistan follows the following budgeting system at Federal level

MANAGEMENT SCIENCES