Question 1

With which standard, the auditor’s substantive procedures must include reconciling the financial statements to the accounting records and should include examining material adjustments made during the course of preparing the financial statements.

Options :

A : Integrated Audit Financial Statement

B : Public Company Accounting Oversight Board

C : Audit of Financial Reporting over Internal Control

D : National Association of Insurance Commission

Answer: B

Question 2

Which of the following is defined as the rate of return anticipated on a bond if it is held until the maturity date?

Options :

A : Discount rate

B : Interest free rate

C : Return on equity

D : Yield to maturity

Answer: D

Question 3

Which of the following tests is used to test the weak form of market efficiency?

Options :

A : Stock splits

B : Insider transactions

C : Accounting changes

D : None of these

Answer: D

Question 4

Dealer charges include extras such as extended warranty.

Options :

A : False

B : True

C : There are no such charges

D : Sometimes it includes, sometimes not

Answer: B

Question 5

The establishment of loss reserves generally requires considerable judgment and knowledge of the entity’s business is known as:

Options :

A : integration assessment

B : procurement assessment

C : qualitative assessment

D : quantitative assessment

Answer: C