M C Q s D r i v e
03079682698
mcqsdrive@gmail.com
About
Contact

Contact Info

03079682698

mcqsdrive@gmail.com

Ad Banner

Management Sciences 5307 MCQs [All-Courses]

thumb

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

What sort of assurance is provided in a review engagement?
A Positive assurance
B Negative assurance
C High level of assurance
D No assurance
Correct Answer: Negative assurance
Which of the following statements is correct?
A When a company negotiates a ‘friendly’ takeover, it usually appoints a firm of accountants to carry out due diligence on the takeover target.
B In an attestation engagement, the accountant is required to report on the quality of work performed.
C In a review engagement, evidence is gathered mainly by means of computation and inspection.
D In an engagement to review financial statements, the amount of work required is the same as for an audit
Correct Answer: When a company negotiates a ‘friendly’ takeover, it usually appoints a firm of accountants to carry out due diligence on the takeover target.
For companies required to produce interim financial statements (IFI):
A one audit firm should audit the IFI and a different firm should audit the financial statements for the year as a whole.
B one accountancy firm should review the IFI and a different firm should audit the financial statements for the year as a whole.
C the same firm should audit the IFI and the financial statements for the year as a whole.
D the same firm should review the IFI and the financial statements for the year as a whole.
Correct Answer: the same firm should review the IFI and the financial statements for the year as a whole.
What is meant by negative assurance?
A The auditor cannot give an opinion due to lack of evidence.
B The client’s financial statements were found to be materially misstated.
C The auditor could not conduct any tests due to lack of controls.
D The auditor did not find anything to indicate that a material misstatement exists.
Correct Answer: The auditor did not find anything to indicate that a material misstatement exists.
The auditor should examine subsequent realization of revenue such as dividends, interest,commission, etc to:­_____________?
A identify cases of unrecorded revenue
B ensure proper disclosure in the balance sheet
C recompute accrued income on the data of balance sheet
D Any of these
Correct Answer: identify cases of unrecorded revenue
To test whether sales have been recorded, the auditor should draw a sample from a file of__________?
A purchase orders
B sales orders
C sales invoices
D bill of loading
Correct Answer: sales invoices
Which of the following documents is not relevant for vouching cash sales?
A Daily cash sales summary
B Salesmen’s summary
C Monthly statements sent to customers
D Bank statement
Correct Answer: Monthly statements sent to customers
The client changed method of depreciation from straight line to written down value method. This has been disclosed as a note to the financial statements. It has an immaterial effect on the current financial statements. It is expected, however, that the change will have a significant effect on future periods. Which of the following option should the auditor express?
A Unqualified opinion
B Qualified opinion
C Disclaimer of opinion
D Adverse opinion
Correct Answer: Unqualified opinion
Which of the following is true about explanatory notes?
A These are given by the directors of the company
B These are given to adhere to requirements of section 211.
C These are given by auditors of the company in auditor’s report
D All of the above
Correct Answer: These are given by the directors of the company
The auditor has serious concern about the going concern of the company. It is dependent on company’s obtaining a working capital loan from a bank which has been applied for. The management of the company has made full disclosure of these facts in the notes to the balance sheet. The auditor is satisfied with the level of disclosure. He should issue___________?
A unqualified opinion
B unqualified opinion with reference to notes to the accounts
C qualified opinion
D disclaimer of opinion
Correct Answer: unqualified opinion
03079682698
mcqsdrive@gmail.com

Copyright @ 2026 MCQsDrive . All Rights Reserved.