ACC 311 Quiz # 2

1) Mr. Ali works an organization on piece rate system. The pay he received monthly is best described by the term

1. Remuneration
2. Wages
3. All of the given
4. Salary

2) Which one of the following documents is NOT included in purchase system while applying different control procedures of

1. Good received note
2. Goods dispatched note
3. GRN invoice
4. Good returned note

3) Control procedures are developed mainly upon which one of the following basics

1. Control objectives
2. Scope of the audit
3. Internal control
4. Tests of control

4) Which one of the following record of cheque and cash received may be kept

1. Cash registers
2. Rough cash book
3. Copies of cash notes
4. Computer database

5) Which one of the following is NOT included in the category of cash

1. Checks
2. Postdated checks
3. Deposit with banks
4. Money orders

6) For measuring the quality of audit evidence auditor used the tool of appropriateness; incase if auditor wants to measure quantity of audit evidence which tools from the following should be adopted>

1. Relevance
2. Reliability
3. Effectiveness
4. Sufficiency

7) Credit worthiness of a customer can be shown from which of the following method

1. By-write off bad debits
2. B y raising the bad debits
3. By pricing and discounts
4. By acceptance of orders

8) Auditing standards require that all cheques and postal orders should be restrictively crossed from the control purposes. According to your knowledge, this control procedure explains which one of the following statements

1. Accounts payee only, not negotiable
2. Can be presented on the cash counter
3. Cheque may not be paid for a specific time period
4. Account payee only, and negotiable

9) In which one of the following ways auditors can chose the verification techniques in a given set of circumstances

1. It depends upon the judgmental skills of the auditor
2. It depends upon the audit procedures planned by the auditor
3. It depends upon the available audit evidence in the auditor
4. Is depends upon the nature of business operation of the entry

10) What is the risk that is the most concern to auditors when auditing cash

1. Adjunct risk
2. Inherent risk
3. Non-sampling risk
4. Detective risk