Audit of Items of Financial Statements

Question 1

1. An auditor is verifying purchases to ensure their genuineness. Consequently, he is also trying to verify that no fake “trade payables” are present in financial statements. Which assertions concerning ...

A) Occurrence; Existence ✓

B) Occurrence; Completeness

C) Existence; Occurrence

D) Completeness; Occurrence

Question 2

2. Which of the following statement is most appropriate as regards to disclosure of goods in transit in financial statements of a company?...

A) No separate disclosure of goods in transit is required.

B) Disclosure of total goods in transit under head of inventories is required.

C) Disclosure of goods in transit under each sub-head of inventories is required. ✓

D) Disclosure of goods in transit for raw material and finished goods is required.

Question 3

3. Sweat Equity shares are issued by a company at a discount or for consideration other than cash to its:-...

A) Directors only ✓

B) Clients only

C) Directors or employees

D) Auditors only

Audit of Items of Financial Statements

Sample Questions: Auditing