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 independent auditors primary responsibility is to______________?
A: the directors
B: the companys creditors (payables)
C: the companys bank
D: the shareholders
the shareholders
How long is the auditors term of office?
A: Until the audit is complete
B: Until the financial statements are complete
C: Until the next AGM (Annual General Meeting)
D: Until the directors remove them
Until the next AGM (Annual General Meeting)
Which of the following is correct in relation to materiality?
A: A matter is material only if it changes the audit report
B: A matter is material if the auditor and the directors both decide that further work needs to be done in the area under question
C: A matter is material only if it affects directors emoluments
D: A matter is material if its omission or misstatement would reasonably influence the decisions of an addressee of the auditors report
A matter is material if its omission or misstatement would reasonably influence the decisions of an addressee of the auditors report
International auditing standards are issued by the______________?
A: International Accounting Standards Board
B: International Federation of Accountants
C: International Standards Board
D: Auditing Practices Board
International Federation of Accountants
Which of the following is not true about opinion on financial statements?
A: The auditor should express an opinion on financial statements.
B: His opinion is no guarantee to future viability of business
C: He is responsible for detection and prevention of frauds and errors in financial statements
D: He should examine whether recognised accounting principle have been consistently
He is responsible for detection and prevention of frauds and errors in financial statements
When an auditor is proposed for removal from office, which one of the following is he NOT permitted to do?
A: Circulate representations to members
B: Apply to the court to have the proposal removed
C: Speak at the AGM/EGM where the removal is proposed
D: Receive notification of the AGM/EGM where the removal is proposed
Apply to the court to have the proposal removed
Which one of the following is NOT a duty of the auditor?
A: Duty to report to the companys bankers
B: Duty to report to the members
C: Duty to sign the audit report
D: Duty to report on any violation of law
Duty to report to the companys bankers
The main object of an audit is _____________?
A: Expression of opinion
B: Detection and Prevention of fraud and error
C: Both (A) and (B)
D: Depends on the type of audit.
Depends on the type of audit.
An auditor is like a_______________?
A: Blood haunt
B: Watch dog
C: May both according to situation
D: None of these
Watch dog
Process of verifying the documentary evidences of transactions are known as___________?
A: Auditing
B: Testing
C: Vouching
D: Verification
Vouching