Correct Answer:
D. Will not be prevented or detected on a timely basis by the entity's internal control
Control risk relates to the failure of the entity's internal control system to prevent or detect misstatements.
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
Control risk is the risk that a material misstatement:
Related MCQs
The imprest cash system in a government office means that:
A.
No cash is ever kept
B.
Cash is deposited daily with no records
C.
All payments are made in kind
D.
A fixed amount of cash is kept for petty expenses and replenished on submission of vouchers
Correct answer is:
D. A fixed amount of cash is kept for petty expenses and replenished on submission of vouchers
Do you agree with this answer?
The yield to maturity (YTM) of a bond is:
A.
The coupon rate
B.
The internal rate of return earned if the bond is held to maturity
C.
The current dividend yield
D.
The face value divided by price
Correct answer is:
B. The internal rate of return earned if the bond is held to maturity
Do you agree with this answer?
In process costing, the weighted average method:
A.
Keeps opening WIP costs separate from current costs
B.
Ignores opening WIP
C.
Ignores current period costs
D.
Combines the cost of opening WIP with current period costs
Correct answer is:
D. Combines the cost of opening WIP with current period costs
Do you agree with this answer?
The Federal Consolidated Fund includes:
A.
Only income tax
B.
All revenues received by the Federal Government, loans raised and money received in repayment of loans
C.
Only foreign aid
D.
Only trust money
Correct answer is:
B. All revenues received by the Federal Government, loans raised and money received in repayment of loans
Do you agree with this answer?
The Laffer curve shows the relationship between:
A.
Tax rates and tax revenue
B.
Inflation and unemployment
C.
Income and consumption
D.
Interest rates and investment
Correct answer is:
A. Tax rates and tax revenue
Do you agree with this answer?
A department has no opening WIP, completes 1,000 units and has 400 units in closing WIP that are 50% complete for conversion. Equivalent units for conversion cost are:
A.
1,200
B.
1,400
C.
1,000
D.
1,600
Correct answer is:
A. 1,200
Do you agree with this answer?
Leave a Reply