ACC501-Business Finance Midterm Subjective Paper May-2012

ACC501-Business Finance Midterm Subjective Paper May-2012

• Aslam will receive Rs.30,000 after 5 years at a discount rate of 12 percent what is the present value of this amount to Aslam (3).

• Calculate the price of a share of stock of ABC Corporation if it pay Rs. 21 per share dividend every year the policy continuous indefinitely and required rate of return is 25%(3).

• Shahid is planning to save amount for future suggest him the effective option from the flowing different Bank on saving account

               Bank A = 16.5% compounded quarterly
               Bank A = 16.75% compounded quarterly (5)

• ABC company bound have face value of 8,000 and promised annual coupon of Rs.880 the bound return in 12 years. Determine the current value of bound if present market condition justify a 13% required rate of return is this a premium bound or discreet bound (5).

ACC311 Fundamentals of Auditing Solved MCQs

During audit of the financial statements, the auditors are concerned with the verification and determination of which one of the following items? 

•  Statements, accuracy, and feasibility
• Date, accuracy, and reliability 
• Policies, value, and reliability
• Cycle, policies, and reliability

Which one of the following authorities shall fix the remuneration of the auditors, if auditors are appointed by the SECP? (Companies Ordinance, 1984)? 

• Directors 
• Shareholders
• Company registrar
• SECP 

The phrase (Scope of an Audit) refers to which one of the followings?

•  Engagement letters
•  Audit procedures 
•  Audit evidence
• Reasonable assurance 

Following statements are true about the legal requirements of books accounts for the companies EXCEPT: (Companies Ordinance, 1984)

• Books of accounts should be preserved for 10 years
• Books of accounts are to be kept at the registered office of the company
• Directors can review the books of account during the business hours
• If a company fails to maintain books of accounts according, it may leads to demolish the entity

 The factors that affect reasonable assurance include all of the following EXCEP:

•  Use of testing (Sampling)
• Interest limitations of accounting and internal control
• Remuneration of the auditor
•  Persuasive nature of audit evidence

 A well designed Internal Control Questionnaire (ICQ) should incorporate the following EXCEPT:

•  Be a sufficient source of data for the evaluation of internal controls
• Identity the internal control system's strengths and weaknesses
• Be organized by individual functional organizations
• Should include simple yes or no responses but no narrative responses

 Which one of the following is FALSE about Internal Control Evaluation Checklists (ICEC)?

•  ICEC is developed to overcome the shortcomings of Internal Control Questionnaire
• The rules of constructing ICEC is different than construction of Internal Control Questionnaire
•  It is designed to determine, whether desirable internal controls are present
• It is normally employed where system's information has already been recorded

 An auditor's flow chart of an entity's information system is a diagrammatic representation. It depicts what kind of information?

•  Program for tests of control
• Understanding of the system
• Understanding of the types of irregularity that are probable given by the present system
• Documentation of the study and evaluation of the system

Which one of the following is NOT a factor included in the control environment of an entity?

•  Integrity and ethical values
• Risk assessment
• Commitment to competence
• Organization structure 

The audit which is a review of any part of an entity's operating procedures and methods is known as: 

• Financial statement audits
• Operational audits 
• Technical Audits
• Compliance audits

 While considering internal control system of an entity, the auditor is basically concerned that the system provides reasonable assurance about which one of the following? 

• That the management can not override the system
• Operational efficiency has been achieved according to management plans
• Errors have been prevented or detected
• Controls have not been circumvented by collusion

 Which one of the following is the source document for staff salaries? 

• Approved payrolls 
• Vouchers
•  Accounting statements
•  Cash memos 

Analytical procedures used in planning an audit should focus on identifying which one of the followings? 

• Areas that may represent specific risks relevant to the audit
•  Material weaknesses in the internal control structure
•  The predictability of financial data form individual transactions
•  The various assertions that are embodied in the financial report

 Which one of the following meetings is considered as a 'meeting of directors or management? 

• General meeting
• Extra ordinary general meeting
• Board meeting 
• Management meeting

ACC311 Fundamentals of Auditing Final Term Paper 2009

                                                      FINAL TERM EXAMINATION
                                                                      Spring 2009
                                             ACC311- Fundamentals of Auditing (Session - 1)

Question No: 1 ( Marks: 1 ) - Please choose one
Which one of the following is an objective of the internal audit?To report on financial statements
To check accounting system and internal control are operating efficiently
To determine the accuracy of financial statement values and disclosuresTo establish a control system in the company

Question No: 2 ( Marks: 1 ) - Please choose one
Which one of the following statements is NOT correct in respect of the internal auditor?
The scope of audit performed by internal auditors is primarily in respect of financial report audits
An internal auditor does not require a license to practice
Internal auditors are usually employed by companies and government unitsPrimary responsibility of the internal auditor is to the board of directors

Question No: 3 ( Marks: 1 ) - Please choose one
After how many days the Securities and Exchange Commission may appoint the auditors, if the Directors of a company could not appoint the auditors to fill casual vacancy? (Companies Ordinance, 1984)
30 days
60 days
80 days
120 days

Question No: 4 ( Marks: 1 ) - Please choose one
Suppose that during audit of a company, an auditor accepted the schedule of bad debts furnished by the client, though it was apparent that debts were not recoverable. The auditor shall be held liable for which one of the following liabilities?
Liability for negligence
Liability for misfeasance
Criminal liability
Personal liability

Ref: Page no.19

Question No: 5 ( Marks: 1 ) - Please choose one
The books of accounts of a company should be kept at which one of the following offices?(Companies Ordinance, 1984)Registered office of the company
Accounts office of the company
Record office of the companyRegistrar office