Test 454 Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Corporate Accounting and Auditing Total Number of Question: 40 Time: 41 Minutes Please check your email after completion of test for result. All the best... Name Phone No Email State 1. SA 530 deals with: Audit Sampling Audit Materiality Forming an Audit Opinion External Confirmations None 2. As per AS 10, the cost of a fixed asset includes: Purchase price Import duties Installation costs All of the above None 3. According to AS 2, inventories are valued at: Market price Cost or Net Realizable Value, whichever is higher Cost or Net Realizable Value, whichever is lower Fair value None 4. Borrowing costs eligible for capitalization as per AS 16 include: General borrowing costs Interest on specific borrowings used for qualifying assets All interest costs Interest on short-term loans None 5. Consolidated financial statements are required for: All companies Companies having subsidiaries Partnership firms Banking companies None 6. Minority interest in a consolidated Balance Sheet represents: The portion of a subsidiary not attributable to the parent company Non-current liabilities of the subsidiary Reserves of the subsidiary Share of profits of the parent company None 7. AS 21 relates to: Segment Reporting Consolidated Financial Statements Related Party Disclosures Accounting for Fixed Assets None 8. Pre-acquisition profits of a subsidiary are shown in: Profit and Loss Account Capital Reserve Goodwill Consolidated Reserve None 9. Which of the following is treated as an extraordinary item? Loss due to theft Interest on borrowings Dividend income None of the above None 10. A provision is recognized when: A liability is probable and measurable A liability is certain A liability is contingent None of the above None 11. The process of obtaining audit evidence includes: Inquiry Observation Inspection All of the above None 12. The first step in planning an audit is: Identifying risks of material misstatement Understanding the client’s business Preparing the audit report Obtaining management representation None 13. Analytical procedures are primarily used in: Planning stage of an audit Execution stage Completion stage All stages of the audit None 14. If an auditor discovers material misstatements but they are not pervasive, the opinion will be: Unmodified Qualified Adverse Disclaimer None 15. SA 700 is applicable to: Audit Sampling Internal Audit Procedures Forming an Opinion and Reporting Quality Control in Audit None 16. The term "sufficient and appropriate" in the context of audit evidence refers to: Quantity and relevance of evidence Volume of transactions audited Number of audit procedures performed None of the above None 17. Internal audit is: Conducted by external auditors Mandatory for all companies Primarily a management tool Substitutes statutory audit None 18. The responsibility of the internal auditor is to: Prepare financial statements Detect fraud and errors Assist management in risk assessment and control Conduct tax audits None 19. A robust internal control system helps in: Minimizing errors and fraud Ensuring compliance with policies Safeguarding assets All of the above None 20. The scope of a tax audit is defined under: Section 44AB of the Income Tax Act Section 135 of the Companies Act SEBI regulations RBI Act None 21. In a forensic audit, the auditor’s focus is on: Verifying compliance with financial reporting standards Identifying fraud and financial irregularities Preparing financial statements Issuing audit opinions None 22. A statutory audit for banks is performed under: Banking Regulation Act, 1949 Companies Act, 2013 Income Tax Act, 1961 SEBI regulations None 23. Environmental audits focus on: Compliance with environmental laws Accuracy of financial statements Operational efficiency Profitability analysis None 24. Social audits are conducted to assess: Profitability of an organization CSR activities and their impact Tax compliance Internal control systems None 25. A compliance audit examines: Adherence to laws and regulations Financial performance Profit margins Cash flows None 26. Management audit primarily focuses on: Efficiency and effectiveness of management practices Compliance with legal requirements Financial statement accuracy Risk of material misstatement None 27. Independence of an auditor ensures: Compliance with tax laws Objectivity and unbiased opinion Greater profitability for the client None of the above None 28. SA 220 focuses on: Audit Planning Quality Control for an Audit Reporting Fraud Analytical Procedures None 29. Ethical principles for auditors include: Integrity Objectivity Professional competence and due care All of the above None 30. Share premium collected by a company can be used for Writing off preliminary expenses Issuing fully paid bonus shares Writing off discount on issue of shares or debentures All of the above None 31. Which of the following is NOT included in the Cash Flow Statement? Depreciation Payment of dividends Issue of shares Outstanding expenses None 32. Accounting for amalgamation is governed by: Ind AS 103 AS 14 AS 22 Ind AS 101 None 33. Contingent liabilities are disclosed in: The Profit and Loss Account The Balance Sheet The notes to accounts Reserves and Surplus None 34. Under the pooling of interest method of amalgamation, the difference between purchase consideration and share capital is adjusted to: Capital Reserve Goodwill General Reserve None of the above None 35. Risk of material misstatement increases when: Internal controls are ineffective The auditor relies on sampling The financial statements are complex Both a and c None 36. Substantive audit procedures are designed to: Test controls Detect material misstatements in the financial statements Assess internal controls Verify the auditor's working papers None 37. The main purpose of a surprise audit is to: Test the effectiveness of internal controls Detect fraud or irregularities Complete the audit quickly Meet statutory requirements None 38. The "true and fair view" in auditing refers to: Compliance with tax laws Accuracy of cash flows Proper representation of financial position and performance Compliance with management policies None 39. An auditor's independence can be compromised by: Providing non-audit services to the same client Long association with the client Financial interest in the client company All of the above None 40. As per SA 240, the auditor’s responsibility for fraud includes: Preventing fraud Detecting material misstatements resulting from fraud Reporting all fraud to law enforcement Certifying financial statements None 1 out of 4 Great job on taking the INCOC Test! We appreciate your interest in test. Look out for results and future opportunities. Stay Connected !! Your quiz time is about to finish. Few seconds left. Time's upYou cannot switch tabs while taking this quiz!You are not allowed to switch tabs violation has been recorded.you cannot minimize full screen mode!You are not allowed to minimize full screen while taking this quiz, violation has been recorded.Access denied! To begin the quiz, please grant this quiz access to your camera.Time is Up!Time is Up!
