MCQ Collection
FPSC Accounts Audit Finance MCQs
Practice FPSC Accounts Audit Finance questions with answers and explanations.
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Correct Answer: A. a procedure evaluating whether a control operated effectively
Explanation:
test of controls refers to a procedure evaluating whether a control operated effectively
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Correct Answer: C. to
Explanation:
The standard construction is “prefer X to Y”.
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Correct Answer: B. current assets minus current liabilities
Explanation:
working capital refers to current assets minus current liabilities
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Correct Answer: D. working capital
Explanation:
working capital is the term that matches the description: current assets minus current liabilities
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Correct Answer: A. reperformance
Explanation:
reperformance is the term that matches the description: independently executing a control or procedure
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Correct Answer: B. substantive procedure
Explanation:
substantive procedure is the term that matches the description: an audit procedure designed to detect material misstatements
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Correct Answer: B. a process designed to support reliable reporting, operations and compliance
Explanation:
internal control refers to a process designed to support reliable reporting, operations and compliance
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Correct Answer: B. 29
Explanation:
21 + 8 = 29.
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Correct Answer: C. systematic allocation of a depreciable asset’s cost over useful life
Explanation:
depreciation refers to systematic allocation of a depreciable asset’s cost over useful life
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Correct Answer: B. audit evidence obtained directly from an independent third party
Explanation:
confirmation refers to audit evidence obtained directly from an independent third party
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Correct Answer: C. asset
Explanation:
asset is the term that matches the description: a resource controlled by an entity that is expected to provide future benefit
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Correct Answer: A. examining records, documents or tangible assets
Explanation:
inspection refers to examining records, documents or tangible assets