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UGRD-ACTG6480-2133T /
MIDTERM EXAM /
Midterm Exam

Started on Wednesday, 6 July 2022, 12:21 AM

State Finished
Completed on Wednesday, 6 July 2022, 12:39 AM
Time taken 17 mins 55 secs
Marks 32.00/40.00
Grade 80.00 out of 100.00

Question 1
Correct

Mark 1.00 out of 1.00

According to PSA 400, which

of the following is correct regarding internal control system?

Select one:
a. A strong environment, by itself, ensure the
effectiveness of the internal control system.

b. Internal control system

refers to all the policies and procedures adopted by the auditor to assist in
achieving management’s
objective.

c. The internal control system is confined to those

matters which relate directly to the functions of the accounting system.

d. 
In the audit of
financial statements, the auditor is only concerned with those policies and
procedures within the accounting
and internal control systems that are relevant
to the financial
statements.

Your answer is correct.

Question 2
Correct

Mark 1.00 out of 1.00

Effective internal control

Select one:
a. Reduces the need for management to review exception reports on a
day-to-day basis.


b. Eliminates risk and

potential loss to the organization.

c. Is unaffected by changing circumstances and conditions

encountered by the organization.

d. Cannot be circumvented by
management

Your answer is correct.

Question 3

Correct

Mark 1.00 out of 1.00

Legal environment of the

firm, management philosophy, and organizational structure.

Select one:
a.
Audit Sampling

b. Comparatives

c. Using the Work of an Expert



d. the Auditor’s Report on

Financial Statements

Your answer is correct.

Question 4
Incorrect

Mark 0.00 out of 1.00

Have made the acceptance of the position of auditor in a company somewhat difficult

Answer: Section 619B 

Question 5
Correct

Mark 1.00 out of 1.00

Who will be under the discipline of a professional body, viz?

Answer: the Institute of Chartered Accountants of India 

Question 6
Correct

Mark 1.00 out of 1.00

The erstwhile Auditing and

Assurance Standard (AAS) 16,issued by the Institute in 1998.

Select one:
a. 
Going Concern

b. Representations by
Management

c. Internal audit function

d.
Internal auditors

Your answer is correct.

Question 7

Correct

Mark 1.00 out of 1.00

Transactions and events

have been recorded in the correct accounting period.

Select one:
a.  Existence

b. Accuracy

c. Cutoff


d. Accuracy and valuation

Your answer is correct.

Question 8
Correct

Mark 1.00 out of 1.00

Amounts and other data relating to recorded

transactions and events have been recorded appropriately,

Select one:
a. Accuracy


b. Accuracy and valuation

c.
Completeness

d. Cutoff

Your answer is correct.

Question 9
Correct

Mark 1.00 out of 1.00

The erstwhile Auditing and Assurance

Standard (AAS) 15,                 issued by the Institute in 1998.

Select one:
a. Advance
Auditing

b. Audited
Financial

c.  Audit Sampling 

d. Internal
audit function

Your answer is correct.

Question 10

Correct

Mark 1.00 out of 1.00

Is
a revised version of the erstwhile Auditing and Assurance Standard (AAS) 5?

Select one:
a.
“Misstatement” and “Uncorrected
misstatements”

b. Audit Evidence 

c. Analytical
Procedures

d. External
Confirmations

Your answer is correct.

Question 11
Correct

Mark 1.00 out of 1.00

Assurance Standard (AAS) 19, issued by the Institute in 2000.

Select one:
a. the Auditor’s Report on
Financial Statements

b. Engagement Quality Control

c. Going Concern

d. Subsequent Events


Your answer is correct.

Question 12

Correct

Mark 1.00 out of 1.00

It
deals with additional communication in the auditor's report when the auditor
considers it necessary to: Draw user's attention to a
matter or matters
presented.

Select one:
a. Independent Auditor's Report


b. Advance
Auditing

c. Comparative
Information

d.
Assurance
Standard

Your answer is correct.

Question 13

Correct

Mark 1.00 out of 1.00

Disclosed events, transactions, and other matters

have occurred and pertain to the entity.

Select one:
a.
Classification

b. Occurrence

c. Occurrence
and rights and obligations 

Your answer is correct.

Question 14

Incorrect

Mark 0.00 out of 1.00

The erstwhile Auditing and Assurance Standard (AAS) 16,                issued by the Institute in 1998.

Select one:
a. Using the Work of an Expert 

b.
Comparatives

c.
Using the Work of an Expert

d.
Audit
Sampling

Your answer is incorrect.

Question 15

Correct

Mark 1.00 out of 1.00

Auditing and Assurance

Standard (AAS) 25, Issued by the Institute in 2002.

Select one:
a.
Corresponding figures

b. Audited Financial

c. 
Comparatives

d. Advance Auditing

Your answer is correct.

Question 16
Incorrect

Mark 0.00 out of 1.00

The erstwhile Auditing and Assurance Standard (AAS)

15, issued by the Institute in 1998.

Select one:
a. Audited Financial

b. Advance Auditing


c. Internal audit function

d. Audit Sampling

Your answer is incorrect.

Question 17

Correct

Mark 1.00 out of 1.00

Assurance
Standard (AAS) 19,                   issued by the Institute in 2000.

Select one:
a. Engagement
Quality Control

b. the
Auditor’s Report on Financial Statements

c. Going
Concern

d. Subsequent Events


Your answer is correct.

Question 18

Correct

Mark 1.00 out of 1.00

Is
a revised version of the erstwhile Auditing and Assurance Standard (AAS) 13?

Select one:
a. Deficiency
in internal control

b. “Misstatement”
and “Uncorrected misstatements"

c. Audit Materiality


d. Audit
Evidence

Your answer is correct.

Question 19
Correct

Mark 1.00 out of 1.00

Is a revised version of the

erstwhile Auditing and Assurance Standard (AAS) 13?

Select one:
a. Audit Materiality 

b. “Misstatement” and
“Uncorrected misstatements”

c. Audit Evidence

d. Deficiency in internal
control

Your answer is correct.

Question 20

Correct

Mark 1.00 out of 1.00

Corporate directors, management, external auditors, and internal auditors all play important roles in creating a proper control
environment. Top management is primarily responsible for

Select one:
a. Establishing a proper environment and specifying overall internal
control


b. Ensuring that external and internal auditors

adequately monitor the control environment.

c. Implementing and monitoring

controls designed by the board of directors.

d. Reviewing the reliability

and integrity of financial information and the means used to collect and report
such information.

Your answer is correct.

Question 21

Correct

Mark 1.00 out of 1.00

The books of account and other books and papers shall be open to inspection by

Answer: any director during business hours 

Question 22
Correct

Mark 1.00 out of 1.00

A misstatement or deviation that is demonstrably not representative of misstatements or deviations in a population

Answer: Anomaly 

Question 23
Correct

Mark 1.00 out of 1.00

Transactions and events that have been recorded have

occurred and pertain to the entity.

Select one:
a. Classification

b. Existence

c. Occurrence


Your answer is correct.

Question 24
Incorrect

Mark 0.00 out of 1.00

The financial reporting framework adopted by management and, where appropriate, those charged with
governance in the
preparation of the financial statements that is acceptable in view of the nature of the entity

Answer: and the objective of the financial statements 

Question 25

Correct

Mark 1.00 out of 1.00

A document issued by an entity, ordinarily on an annual basis, which includes its financial statements together
with the auditor’s report
thereon

Answer: Annual report 

Question 26

Incorrect

Mark 0.00 out of 1.00

Must maintain proper books of account relating to transactions effected at the branch office, also arrange to
obtain from

Answer: the company 

Question 27
Correct

Mark 1.00 out of 1.00

Financial information is appropriately presented and

disclosures clearly expressed.

Select one:
a. Existence

b.
Accuracy

c. Accuracy and valuation

d. Classification and understandability



Your answer is correct.

Question 28
Incorrect

Mark 0.00 out of 1.00

Evaluations of financial information through analysis of plausible relationships among both financial and nonfinancial data

Answer: Internal auditing 

Question 29
Correct

Mark 1.00 out of 1.00

Is a revised version of
the erstwhile Auditing and Assurance Standard (AAS) 17

Select one:
a. Audit Evidence


b. Analytical Procedures

c. Misstatement” and
“Uncorrected misstatements”

d. External Confirmations

Your answer is correct.

Question 30

Correct

Mark 1.00 out of 1.00

In an audit of financial statements, an auditor’s primary consideration regarding a control is whether it

Select one:
a. Affects management’s financial statement assertions.


b. Reflects management’s
philosophy and operating style.

c. Provides adequate
safeguards over access to assets

d. Enhances management’s
decision-making processes.

Your answer is correct.

Question 31
Correct

Mark 1.00 out of 1.00

Transactions and events

have been recorded in the proper accounts.

Select one:
a. Existence

b.  Classification


c. Accuracy and valuation

Your answer is correct.

Question 32
Correct

Mark 1.00 out of 1.00

Which of the following is

correct about internal control?

Select one:
a. One of the inherent limitations of accounting and internal control
systems is the possibility that the procedures may become
inadequate due to
changes in conditions, and compliance with procedures may deteriorate.

b. Management does not

consider costs of the accounting and internal control systems.

c.
Accounting and
internal control systems provide management with conclusive evidence that
objectives are reached.

d. Most internal controls tend

to be directed at non-routine transactions.

Your answer is correct.

Question 33

Incorrect

Mark 0.00 out of 1.00

The Central Government in case the maximum rate of discount should exceed

Answer: 10 per cent 

Question 34
Correct

Mark 1.00 out of 1.00

Assets, liabilities, and

equity interests exist.

Select one:
a. Cutoff

b. Accuracy and valuation

c. Accuracy

d. Existence


Your answer is correct.

Question 35
Correct

Mark 1.00 out of 1.00

It deals with additional communication in the

auditor's report when the auditor considers it necessary to: Draw user's
attention to a
matter or matters presented.

Select one:
a. Advance Auditing

b. Comparative Information

c. Independent Auditor's Report



d. Assurance Standard

Your answer is correct.

Question 36
Incorrect

Mark 0.00 out of 1.00

Was called upon to intimate his willingness or otherwise to accept the assignment pursuant to the resolution of
the Board of Directors

Answer: Z 
Question 37

Correct

Mark 1.00 out of 1.00

Auditing
and Assurance Standard (AAS) 25,                Issued
by the Institute in 2002.

Select one:
a. Audited
Financial

b. Advance Auditing

c. Corresponding
figures

d. Comparatives


Your answer is correct.

Question 38
Correct

Mark 1.00 out of 1.00

The erstwhile Auditing and Assurance

Standard (AAS) 16,                issued by the Institute in 1998.

Select one:
a. Representations
by Management

b. Going Concern

c.  Internal audit function 

d. Internal auditors

Your answer is correct.

Question 39

Correct

Mark 1.00 out of 1.00

  Risks of
material statements can be assessed and identified with the following,except
one;

Select one:
a. Based on an understanding of the entity

b. Entity'd internal control

c. Professional skepticism


d. Due to fraud or error

Your answer is correct.

Question 40

Correct

Mark 1.00 out of 1.00

The entity holds or controls the rights assets and

liabilities are the obligations of the entity.

Select one:
a. Existence

b. Accuracy and valuation

c. Accuracy

d. Rights and Obligations



Your answer is correct.

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