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.
When issuing unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the_____________?
A: Amount of known misstatement is documented in working papers
B: Estimates of the total likely misstatement is less than materiality level
C: Estimate of the total likely misstatement is more than materially level
D: Estimates of the total likely misstatement cannot be made
Estimates of the total likely misstatement is less than materiality level
Which of the following statements is not true about continuous audit?
A: It is conducted at regular interval
B: It may be carried out on daily basis
C: It is needed when the organization has a good internal control system
D: It is expensive
It is needed when the organization has a good internal control system
Which of the following statement best describes the understanding with respect to ownership and custody of working papers prepared by an auditor?
A: The working papers may be obtained by third parties when they appear to be relevant to issues raised in litigation
B: The safe custody of working papers is the responsibility of client, if kept at his premises
C: The working papers must be retained by an audit firm for a period of 10 years
D: Successor auditors may have access to working papers of the predecessor auditors. The approval of client is not required.
The working papers may be obtained by third parties when they appear to be relevant to issues raised in litigation
The current file of the auditors working papers, generally, should include____________?
A: A flowchart of the internal controls
B: Organisation charts
C: A copy of financial statements
D: Copies of bond and debentures
A copy of financial statements
Audit of banks is an example of__________?
A: Statutory audit
B: Balance sheet audit
C: Concurrent audit
D: Both (and (
All of the above
In Pakistan, balance sheet audit is synonymous to___________?
A: Annual audit
B: Continuous audit
C: Detailed audit
D: Statutory audit
Annual audit
Which of the following best describes the primary purpose of audit programme preparation?
A: To detect errors or fraud
B: To comply with GAAP appropriate evidence
C: To gather sufficient
D: To assess audit risk
To gather sufficient
Which of the following is not an advantage of the preparation of working paper?
A: To provide a basis for review of audit work
B: To provide a basis for subsequent audits
C: To ensure audit work is being carried out as per programme
D: To provide a guide for advising another client on similar issues
To provide a guide for advising another client on similar issues
The auditors permanent working paper file should not normally, include__________?
A: Extracts from clients bank statements
B: Past years financial statements
C: Attorneys letters
D: Debt agreements
Extracts from clients bank statements
For what minimum period should audit working papers be retained by audit firm?
A: For the time period the entity remains a client of the audit firm.
B: For a period of ten years
C: For a period auditor opines them to be useful in servicing the client
D: For the period the audit firm is in existence.
For a period auditor opines them to be useful in servicing the client