Senior Auditor Past Papers MCQs

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Important Senior Auditor Past Papers MCQs For the preparation of FPSC auditor test online.

Senior Auditor Past Papers MCQs

From the following which is not an adjusting entry ?

  1. Debit unearned revenue ,credit revenue
  2. Debit Insurance expense, credit prepaid insurance
  3. Debit cash, credit unearned revenue
  4. None

Purpose of depreciation is ?

  1. To show the previous profit
  2. To calculate net profit
  3. To reduce tax
  4. None

The object of making a provision for depreciation in the accounts is :

  1. To charge the costs of fixed assets against the profits
  2. To show the current market value of fixed assets
  3. To make cash available to replace fixed assets
  4. None

Deferred Taxation is :

  1. Fixed assets
  2. Fixed liabilities
  3. Part of owners equity
  4. None

The most high option price in financial planning , will lead to :

  1. Longer option period
  2. Smaller option period
  3. Lesser price
  4. None

Becoming out of date or absolute in accounting is known as?

  1. Amortization
  2. Obsolescence
  3. Depletion
  4. None

Under declining balance method depreciation is calculated on ?

  1. Original value
  2. book value
  3. Scrape value
  4. None

Definition of Salvage value is :

  1. Definition sale price of an asset
  2. Cash to be received when life of asset end
  3. Estimated disposal value
  4. None

The depreciation according to fixed installment method, the calculation on

  1. Balance account
  2. Original costs
  3. Scrap value
  4. None

The portion of the cost expires during a year is :

  1. Cost
  2. Expense
  3. Expenditure
  4. None

From following which one is an example of unearned income ?

  1. Cash paid to supplier
  2. Advance received from bank
  3. Advance received from customer for a purchase order place by him
  4. None

The purpose of adjusting entries ?

  1. Assign revenue to the period in which they are earned
  2. Help to properly measure the period’s net profit / loss
  3. Bring assets and liability account to correct balances
  4. All

The requirements of an audit report for a banking company in Pakistan is :

  1. Under banking company ordinance 1962
  2. Under companies ordinance 1984
  3. Both
  4. None

What accounting term is given to the outstanding one month’s rent if a business pays for only 11 month rent during a financial year

  1. Repayment
  2. Payable
  3. Both
  4. None

The effect of every adjusting entry is on :

  1. Income statement account only
  2. Balance sheet account only
  3. Both
  4. None

A manager who is responsible for only the cost of company belongs to

  1. Cost center
  2. Revenue center
  3. Profit center
  4. None

Which of the following term is used for the large number of manager subordinates and the higher level manager?

  1. Activity subordinate
  2. Broader responsibility center
  3. Broader sub ordinate
  4. None

____ should be debited when goods returned by customers.

  1. Sale income account
  2. Sales account
  3. Returned inward account
  4. None

If ___ increases will increase the capital .

  1. Expenses are greater than income
  2. Drawings
  3. Revenue
  4. None

Equity can be well defined by :

  1. Cash from the business
  2. Liability of a business
  3. Owner’s claim on total assets
  4. None

The gross inflow of economic benefits are called :

  1. Assets
  2. Liabilities
  3. Income
  4. None

Having separate legal entity whose total capital can be divided into many shares are called :

  1. Partnership
  2. Sole proprietor ship
  3. Company
  4. None

The cost drivers for manufacturing overhead costs in mater budget are :

  1. Direct manufacturing labor hours
  2. Setup labor hours
  3. Both
  4. None

“An accountant should not anticipate profit , but must provide all losses” this concept is :

  1. Conservation concept
  2. Consistency concept
  3. Materiality concept
  4. None

What will be the manufacturing budget if the indirect manufacturing labor 20000, power cost is 5000, maintenance and supplies are of 10000?

  1. 55000
  2. 35000
  3. 15000
  4. None

On the preparation of trial balance which error can not be revealed ?

  1. Wrong totaling of account
  2. Compensatory errors
  3. Error of commission
  4. None

The balance in petty cash is :

  1. Liability
  2. Income
  3. Asset
  4. None

The meaning of reserve capital is :

  1. Part of subscribed uncalled capital
  2. Accumulated profit
  3. Part of capital reserve
  4. None

If the date of maturity of a bill is a holiday then bill will mature on :

  1. Holiday itself
  2. Other agreed day
  3. Preceding working day
  4. None

Which of following instrument is not a negotiable instruments?

  1. Bearer cheque
  2. Crossed cheque
  3. Promissory note
  4. none

The purpose to maintain purchase book is to record

  1. All credit purchases
  2. All cash purchases
  3. Purchase of goods
  4. None

Which of following defines right shares are the shares ?

  1. Issued by a newly formed company
  2. Legally issued to a public at large
  3. Offered to the existing equity shareholders
  4. None

A company is not allowed to raise funds by issue of shares beyond the maximum amount is :

  1. Issued capital
  2. Reserved capital
  3. Nominal capital
  4. None

Purpose of depreciation is :

  1. Helps to tie the cost of an asset with the benefits of its use over time
  2. Helps to tie the cost of an asset
  3. Helps to tie the sale of an asset with the benefits of its use over time
  4. None

cost apportionment is used for which purpose

  1. Distribution of various overhead items
  2. Distribution of various goods
  3. collection of various overhead items
  4. All

External user of accounting related to

  1. Investors
  2. both
  3. Debtors
  4. All

In financial accounting main purpose is to provide information to

  1. Investors and creditors
  2. Debtors
  3. Capital
  4. None

Bid must be submitted in

  1. Packages
  2. Installments
  3. Both
  4. None

What is the minimum response time for a bid after advertisement

  1. 15 days
  2. 12 days
  3. 10 days
  4. None

A bid should be published in how many ways?

  1. Electronic media
  2. News paper
  3. Both
  4. None

What means identify recording and communicating information

  1. Accounting
  2. Expenses
  3. revenue
  4. All

During rising price which inventory method provide lowest profit

  1. FIFO
  2. LIFO
  3. Both
  4. None

Which thing increase assets and decrease liabilities

  1. Payment of bank loan
  2. credits
  3. All
  4. None

Retained earning is a synonym of

  1. Cumulative net earning
  2. Non Cumulative net earning
  3. Both
  4. None

According to procurement rule 2004 the limit of bid amount is :

  1. 500000 to 30000
  2. 500000 to 3000000
  3. 5000 to 3000000
  4. none

Bid amount should not be exceed to :

  1. 5%
  2. 6%
  3. 10%
  4. none

According to pension rule 2016 from 25 is used for :

  1. File family pension
  2. File family package
  3. family pension
  4. none

Pension rules 2016 revise to give the pension from

  1. 24
  2. 23
  3. 22
  4. 25

___ the audit risk___ the immateriality and ___ the audit effort

  1. lower ,higher, lower
  2. low ,higher, lower
  3. lower ,higher, higher
  4. none

Budgetary control system facilitate centralized control with ?

  1. Decentralized Activity
  2. Centralized Activity
  3. Both
  4. None

Government expenditure audit is explained in front of:

  1. High court
  2. President
  3. both
  4. none

First step in accounting is to

  1. identify
  2. Record transaction
  3. Post in ledgers
  4. All

Window dressing is implied at the time of :

  1. safeguard the income on the behalf of share holders
  2. safeguard the assets on the behalf of share holders
  3. safeguard the capital on the behalf of share holders
  4. none

The auditor of company remained auditor till:

  1. Next year AGM
  2. next two years
  3. next five years
  4. none

The amount which owe subtract from owing is called :

  1. net worth
  2. net loss
  3. net profit
  4. all

An auditor should give the :

  1. bad view of accounts
  2. True and fair view of accounts
  3. brief view of accounts
  4. none

Which of following statement is not true ?

  1. Same work as internal auditor direction
  2. prevention of errors and frauds
  3. both
  4. none

Who is resemble to provide the unambiguous document :

  1. procurement department
  2. bidder
  3. both
  4. none

Qualified auditor, in different companies will give the opinion on financial statement :

  1. qualified opinion
  2. unqualified opinion
  3. either a or b
  4. none

Cash flow method of cash budget is suitable for preparing the long term estimates of :

  1. Cash inflow and out flows
  2. cash flow
  3. income flow
  4. none

Which of following is not objective of Budgetary control?

  1. to help in fixation
  2. to help in fixation of selling price
  3. both
  4. none

How many security must be submitted for bid?

  1. 6 %
  2. 3 %
  3. 5 %
  4. none

How many types of competitive bidding request are

  1. 3
  2. 4
  3. 5
  4. 6

in case of international bidding the maximum time given to submit bid documents :

  1. 10 days
  2. 20 days
  3. 30 days
  4. none

Budgetary control system Acts as a friend, philosopher and guide to the?

  1. Management
  2. Guidance
  3. All
  4. None

In developing operating budget the last step is ?

  1. Implementing income
  2. Efficient Implementation
  3. Implementing the decision
  4. None

In developing operating budget the third step is :

  1. Analysis of batches
  2. Analysis of products
  3. Making predictions about future
  4. None

In which the contract holder has the right to cell an asset at specific period for predetermining price that contract is classified as :

  1. Written value
  2. Featured contract
  3. Determined contract
  4. None

The difference between the budgeted amounts and the actual results is classified as:

  1. Standard deviation
  2. Variances
  3. Mean average
  4. None

Which cover the capital expenditure, budgeted statement of cash flows and balance sheet that part of the master budget are classified as :

  1. Financial budget
  2. Capital budget
  3. Cash flows budget
  4. None

In capital budgeting, term of bond which has great sensitivity to interest rates is

  1. long-term bonds
  2. short-term bonds
  3. internal term bonds
  4. external term bonds

Bid must be open

  1. Publicly
  2. Privately
  3. All
  4. None

In how much form the bids is written:

  1. Four types
  2. Five types
  3. three types
  4. none

Budgetary control is a system of controlling :

  1. Cost ascertainment
  2. sale price
  3. purchase cost
  4. none

Custom duties are form of ______

  1. Direct Taxation
  2. Indirect Taxation
  3. Non-Tax Revenue
  4. Govt deposits

IFAC is an abbreviation of?

  1. International Federation of Accountants
  2. International Federation of Account
  3. International Founder of Accountants
  4. None

Entities are required to comply with the following standards to operative their financial statements?

  1. IAS
  2. ISA
  3. IFRS
  4. All of these
  5. None of these

Depreciation arises due to what?

  1. Physical wear and tear of the asset
  2. Fall in the market value of the asset
  3. Fall in the value of money
  4. All of these
  5. None of these

All of the following are stockholders’ equity accounts except:

  1. Common Stock
  2. Investment in Stock
  3. Retained Earnings
  4. Capital Stock

Retained earnings is classified as which type of account?

  1. Asset
  2. Liability
  3. Expense
  4. Equity
  5. All of these

Which of the following business entity is considered as a “legal person” in the eye of law?

  1. Sole trader
  2. Partnership
  3. Company
  4. All of the above
  5. None of these

Which of the following accounting principles requires businesses to record depreciation?

  1. The cost principle
  2. The matching principle
  3. The revenue recognition principle
  4. The going concern principle
  5. All of these

Which of the following are the tools of management accounting?

  1. Budgetary controls
  2. Marginal Costing
  3. Standard Costing
  4. All of these
  5. None of these

Which of the following are not the tools of management accounting?

  1. Funds flow statement
  2. Cash Flow statement
  3. Ratio Analysis
  4. Process costing

Who coined the concept of management accounting?

  1. R.N Anthony
  2. James H. Bliss
  3. Vint Cerf
  4. Thomas Edison

Managing Accounting maintains_?

  1. Ledger
  2. Journal
  3. Both of these
  4. None of these

Wealth maximization is a ________?

  1. Outdated concept
  2. Long term concept
  3. Temporary concept
  4. Short term concept
  5. All of these

Salaries, wages, depreciations, rents and utilities are used to calculate___?

  1. Operating costs
  2. Variable costs
  3. Outdoor costs
  4. Fixed costs
  5. All of these

The opinion in an auditor’s report is about attesting that the financial statement are __?

  1. Are in accordance with the national standards
  2. Are in accordance with the international standards
  3. Are free from errors, mistakes, or fraud
  4. Present fairly in all material respects

Audit Risk is the combination of_____?

  1. Three Risks
  2. Two Risks
  3. Four Risks
  4. Five risks

Audit Risk basically represents the risk that the auditor would wrongly conclude that the financial statements are?

  1. Free from material error whereas material is present
  2. Not free from material error whereas material error is not present
  3. Both A & B
  4. None of these

Inherent Risk is fundamentally?

  1. The residual risk after all precautionary measures have been taken
  2. the residual risk after proper controls are designed and implemented
  3. the risk inherent in auditor’s tests to detect misstatements
  4. None of these

Solved MCQs of FPSC Senior Auditor Past Papers pdf download with answers for your FPSC Senior Auditor (BS-16) test preparation online.

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