Management Sciences MCQs
These Management Sciences MCQs are for public service commission exams and BBA, and MBA students to prepare for their examinations. All MCQs are prepared after having a look at past papers of public service commission examinations held from time to time. These Management Science questions are very important for all types of tests conducted by FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, STS, ETEA, and other testing agencies of Pakistan.
The basic assumption underlying the use of analytical procedures is:____________?
A: It helps the auditor to study relationship among elements of financial information
B: Relationship among data exist and continue in the absence of known condition to the contrary
C: Analytical procedures will not be able to detect unusual relationships
D: None of the above.
Relationship among data exist and continue in the absence of known condition to the contrary
What are analytical procedures?
A: Substantive tests designed to assess control risk
B: Substantive tests designed to evaluate the validity of managements representation letter
C: Substantive tests designed to study relationships between financial and nonÂfinancial
D: All of the above
Substantive tests designed to study relationships between financial and nonÂfinancial
Which of the following is not an analytical procedure?
A: Tracing of purchases recurred in the purchase book to purchase invoices.
B: Comparing aggregate wages paid to number of employees
C: Comparing the actual costs with standard costs
D: All of them are analytical procedure
Tracing of purchases recurred in the purchase book to purchase invoices.
When applying analytical procedures, an auditor could develop independent estimate of an account balance to compare it toÂ___________?
A: clients unedited account balance
B: clients unedited account balance adjusted for trends in the industry
C: Prior year audited balance
D: Prior year audited balance adjusted for trends in the industry
Prior year audited balance adjusted for trends in the industry
Which of the following statements is not correct about materiality?
A: Materiality is a relative concept
B: Materiality judgments involve both quantitative and qualitative judgments
C: Auditors consideration of materiality is influenced by the auditors perception of the needs of an informed decision maker who will rely on the financial statements
D: At the planning state, the auditor considers materiality at the financial statement level only
At the planning state, the auditor considers materiality at the financial statement level only
Audit in depth is synonymous forÂ_____________?
A: Complete audit
B: Completed audit
C: Final audit
D: Detailed audit
Detailed audit
In determining the level of materiality for an audit, what should not be considered?
A: Prior years errors
B: The auditors remuneration
C: Adjusted interim financial statements
D: Prior years financial statements
The auditors remuneration
Balance sheet audit includes verification of____________?
A: Assets
B: Income and expense accounts where appropriate
C: Liabilities
D: All of the above
All of the above
Balance sheet does not includeÂ:_____________?
A: Verification of assets and liabilities
B: Vouching of income and expense accounts related to assets and liabilities
C: Examination of adjusting and closing entries
D: Routine checks
Routine checks
_______the audit risk,_______the materiality and _______the audit effort?
A: Lower, Higher, Lower
B: Lower, Lower, Higher
C: Higher, Lower, Lower
D: Lower, Higher, Higher
Lower, Higher, Lower