Correct Answer:
D. Matters of most significance in the audit of the current period, communicated in the auditor's report
ISA 701 requires KAMs to be communicated in the report for listed entities (and when otherwise decided).
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
Key Audit Matters (KAMs) under ISA 701 are:
Related MCQs
The benefit principle of taxation says that:
A.
Taxes should depend only on income
B.
Taxes should be equal for everyone
C.
Taxes should be paid according to the benefits received from government services
D.
Taxes should be avoided
Correct answer is:
C. Taxes should be paid according to the benefits received from government services
Do you agree with this answer?
A tax expenditure is:
A.
Money spent on collecting taxes
B.
Salaries of tax officers
C.
Tax refunds paid by mistake
D.
Revenue forgone by government through exemptions, deductions and concessions
Correct answer is:
D. Revenue forgone by government through exemptions, deductions and concessions
Do you agree with this answer?
Compared with an external auditor, an internal auditor is mainly:
A.
An employee or function inside the entity that evaluates risk management, control and governance
B.
Appointed by the tax authority to check returns
C.
Responsible for giving an opinion to shareholders
D.
Prohibited from reporting to the audit committee
Correct answer is:
A. An employee or function inside the entity that evaluates risk management, control and governance
Do you agree with this answer?
Expenditure charged upon the Federal Consolidated Fund (Article 81) is:
A.
Voted separately by the Senate
B.
Free of any audit
C.
Paid only from provincial funds
D.
Not submitted to a vote in the National Assembly, though it may be discussed
Correct answer is:
D. Not submitted to a vote in the National Assembly, though it may be discussed
Do you agree with this answer?
Lapse of appropriation means that:
A.
Unspent funds carry forward automatically
B.
The budget is increased
C.
Unspent budget allocations expire at the end of the fiscal year
D.
Audit is cancelled
Correct answer is:
C. Unspent budget allocations expire at the end of the fiscal year
Do you agree with this answer?
Under the weighted average cost method, the cost per unit is calculated as:
A.
The cost of the latest purchase
B.
The cost of the oldest purchase
C.
Total cost of goods available divided by total units available
D.
The selling price less profit
Correct answer is:
C. Total cost of goods available divided by total units available
Do you agree with this answer?
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