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Management Sciences 5307 MCQs [All-Courses]

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Management Sciences focuses on the planning, organizing, leading, and controlling of resources to achieve organizational goals.This subject is highly important for competitive exams, academic study, and professional careers in the business and public sectors.

All Topics  5307

Which of the following statements is not correct about materiality?
A Materiality is a relative concept
B Materiality judgments involve both quantitative and qualitative judgments
C Auditor’s consideration of materiality is influenced by the auditor’s perception of the needs of an informed decision maker who will rely on the financial statements
D At the planning state, the auditor considers materiality at the financial statement level
Correct Answer: At the planning state, the auditor considers materiality at the financial statement level
Balance sheet does not include­:_____________?
A Verification of assets and liabilities
B Vouching of income and expense accounts related to assets and liabilities
C Examination of adjusting and closing entries
D Routine checks
Correct Answer: Routine checks
Which of the following statements is not true about continuous audit?
A It is conducted at regular interval
B It may be carried out on daily basis
C It is needed when the organization has a good internal control system
D It is expensive
Correct Answer: It is needed when the organization has a good internal control system
Balance sheet audit includes verification of____________?
A Assets
B Liabilities
C Income and expense accounts where appropriate
D All of the above
Correct Answer: All of the above
Audit in depth is synonymous for­_____________?
A Complete audit
B Completed audit
C Final audit
D Detailed audit
Correct Answer: Detailed audit
In Pakistan, balance sheet audit is synonymous to___________?
A Annual audit
B Continuous audit
C Detailed audit
D Statutory audit
Correct Answer: Annual audit
Auditing is what?
A Reporting the financial information
B Examination of financial statements
C Preparation financial statements
D maintaining the ledger records
Correct Answer: Examination of financial statements
The current file of the auditor’s working papers, generally, should include____________?
A A flowchart of the internal controls
B Organisation charts
C A copy of financial statements
D Copies of bond and debentures
Correct Answer: A copy of financial statements
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.
Correct Answer: The working papers may be obtained by third parties when they appear to be relevant to issues raised in litigation
Which of the following statement is true regarding an auditor’s working papers?
A They document the level of independence maintained by the auditor
B They should be considered as the principle support for the auditor’s report
C They should not contain details regarding weaknesses in the internal control system
D They help the auditor to monitor the effectiveness of the audit firm’s quality control
Correct Answer: They should be considered as the principle support for the auditor’s report
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