Correct Answer:
A. Material but not pervasive
A qualified opinion (except for) is used when the effect is material but not pervasive to the financial statements.
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
A qualified opinion is issued when misstatements are:
Related MCQs
Total expenditure is Rs. 1,000 billion, total revenue is Rs. 800 billion and interest payments are Rs. 120 billion. The primary deficit is:
A.
Rs. 200 billion
B.
Rs. 320 billion
C.
Rs. 120 billion
D.
Rs. 80 billion
Correct answer is:
D. Rs. 80 billion
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An external confirmation of accounts receivable balances mainly provides evidence about:
A.
Valuation of inventory
B.
Completeness of payables
C.
Compliance with tax law
D.
Existence of the receivables
Correct answer is:
D. Existence of the receivables
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A share buyback (repurchase) generally:
A.
Increases the number of shares outstanding
B.
Reduces the number of shares outstanding
C.
Raises new equity
D.
Has no effect on cash
Correct answer is:
B. Reduces the number of shares outstanding
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A cost driver is:
A.
A factor that causes the cost of an activity to change
B.
A person who drives the delivery vehicle
C.
A fixed cost per unit
D.
A sunk cost
Correct answer is:
A. A factor that causes the cost of an activity to change
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Normal loss in a process is:
A.
A loss caused by negligence charged to profit and loss
B.
A gain from efficient production
C.
An expected and unavoidable loss that is absorbed by the good units
D.
A sunk cost
Correct answer is:
C. An expected and unavoidable loss that is absorbed by the good units
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Who has primary responsibility for the prevention and detection of fraud?
A.
The external auditor only
B.
The shareholders only
C.
The tax authority
D.
Management and those charged with governance
Correct answer is:
D. Management and those charged with governance
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