Page 46 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs

c) Revenue or capital expenditure depending upon facts and circumstances.
d) None of the above

AIFS.8 #Unique SM21
Which assertion is common among the statement of profit and loss and balance sheet captions:

a) Existence
b) Valuation
c) Completeness
d) Measurement

AIFS.9 #Unique SM21

Which of the following is not an example of revenue expenditure -
a) Salaries and wages of employees engaged directly or in-directly in production
b) Repairs, maintenance and renewals of fixed assets
c) Legal and professional expenses
d) development expenditure on land

AIFS.10 SM21
Observing inventory being counted and personally performing test counts to verify counts is

performed during audit of inventory balances to address the following balance sheet assertion:
a) Rights and obligations
b) Valuation
c) Completeness
d) Existence

AIFS.11 SM21
Obtaining trade receivables ageing report and analysis and identification of doubtful debts is
performed during audit of accounts receivable balances to address the following balance sheet
assertion:
a) Valuation
b) Rights and obligations
c) Existence
d) Completeness

AIFS.12 SM21/M23M
Cut-off testing is performed during audit of sales to address the following assertion:
a) Occurrence
b) Measurement
c) Cut-off
d) All of the above

AIFS.13 SM21
Search for unrecorded liability is performed during audit of current liabilities to address the

following balance sheet assertion:
a) Valuation
b) Rights and obligations
c) Existence
d) Completeness

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