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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 is correct in relation to materiality?
A A matter is material only if it changes the audit report
B A matter is material if the auditor and the directors both decide that further work needs to be done in the area under question
C A matter is material only if it affects directors’ emoluments
D A matter is material if its omission or misstatement would reasonably influence the decisions of an addressee of the auditors’ report
Correct Answer: A matter is material if its omission or misstatement would reasonably influence the decisions of an addressee of the auditors’ report
How long is the auditor’s term of office?
A Until the audit is complete
B Until the financial statements are complete
C Until the next AGM (Annual General Meeting)
D Until the directors remove them
Correct Answer: Until the next AGM (Annual General Meeting)
The independent auditor’s primary responsibility is to______________?
A the directors
B the company’s creditors (payables)
C the company’s bank
D the shareholders
Correct Answer: the shareholders
Assuming that it is not the first appointment of the auditor, who is responsible for the appointment of the auditor?
A The shareholders in a general meeting
B The managing director
C The board of directors in a board meeting
D The audit committee
Correct Answer: The shareholders in a general meeting
Which one of the following is NOT a duty of the auditor?
A Duty to report to the company’s bankers
B Duty to report to the members
C Duty to sign the audit report
D Duty to report on any violation of law
Correct Answer: Duty to report to the company’s bankers
When an auditor is proposed for removal from office, which one of the following is he NOT permitted to do?
A Circulate representations to members
B Apply to the court to have the proposal removed
C Speak at the AGM/EGM where the removal is proposed
D Receive notification of the AGM/EGM where the removal is proposed
Correct Answer: Apply to the court to have the proposal removed
A sale of Rs. 50.000 to A was entered as a sale to B. This is an example of____________?
A Error of omission
B Error of commission
C Compensating error
D Error of principle
Correct Answer: Error of commission
Which of the following is not true about opinion on financial statements?
A The auditor should express an opinion on financial statements.
B His opinion is no guarantee to future viability of business
C He is responsible for detection and prevention of frauds and errors in financial statements
D He should examine whether recognised accounting principle have been consistently
Correct Answer: He is responsible for detection and prevention of frauds and errors in financial statements
International auditing standards are issued by the______________?
A International Accounting Standards Board
B International Federation of Accountants
C International Standards Board
D Auditing Practices Board
Correct Answer: International Federation of Accountants
Which of the following is NOT the responsibility of a company’s directors?
A Reporting to the shareholders on the accuracy of the accounts
B Establishment of internal controls
C Keeping proper accounting records
D Supplying information and explanations to the auditor
Correct Answer: Reporting to the shareholders on the accuracy of the accounts
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