Correct Answer:
A. Bills and claims are checked before payment is made
Post-audit takes place after the transaction or payment has occurred.
November 13, 2026 · Accounting and Finance MCQs, Public Sector Accounting & Auditing MCQs
Pre-audit means that:
Related MCQs
Actual quantity used is 480 units, standard quantity allowed is 500 units and the standard price is Rs. 10. The material usage variance is:
A.
Rs. 200 adverse
B.
Rs. 200 favorable
C.
Rs. 5,000 favorable
D.
Rs. 4,800 adverse
Correct answer is:
B. Rs. 200 favorable
Do you agree with this answer?
A management representation letter:
A.
Is written confirmation from management that supports other audit evidence but cannot replace it
B.
Is enough evidence on its own for any assertion
C.
Is issued by the auditor to the shareholders
D.
Is needed only for sole proprietorships
Correct answer is:
A. Is written confirmation from management that supports other audit evidence but cannot replace it
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?
When NPV and IRR give conflicting rankings for mutually exclusive projects, the preferred criterion is generally:
A.
NPV
B.
IRR
C.
Payback period
D.
Accounting rate of return
Correct answer is:
A. NPV
Do you agree with this answer?
The fundamental qualitative characteristics of useful financial information are:
A.
Comparability and timeliness
B.
Relevance and faithful representation
C.
Verifiability and understandability
D.
Materiality and prudence
Correct answer is:
B. Relevance and faithful representation
Do you agree with this answer?
A qualified opinion is issued when misstatements are:
A.
Material but not pervasive
B.
Both material and pervasive
C.
Immaterial
D.
Not found at all
Correct answer is:
A. Material but not pervasive
Do you agree with this answer?
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