Correct Answer:
A. Maintains a questioning mind and critically assesses audit evidence
Professional skepticism includes a questioning mind and alertness to conditions suggesting misstatement.
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
Professional skepticism means the auditor:
Related MCQs
EBIT is Rs. 300,000 and interest expense is Rs. 60,000. The times interest earned ratio is:
A.
0.2 times
B.
4 times
C.
6 times
D.
5 times
Correct answer is:
D. 5 times
Do you agree with this answer?
A contingent liability is:
A.
Always recognized as a liability
B.
Not recognized in the statements but disclosed unless the possibility of outflow is remote
C.
Always ignored
D.
An asset of uncertain value
Correct answer is:
B. Not recognized in the statements but disclosed unless the possibility of outflow is remote
Do you agree with this answer?
The present value of a perpetuity paying Rs. 5,000 per year at a discount rate of 10% is:
A.
Rs. 5,000
B.
Rs. 50,000
C.
Rs. 500
D.
Rs. 55,000
Correct answer is:
B. Rs. 50,000
Do you agree with this answer?
Activity-based costing (ABC) assigns overhead costs to products on the basis of:
A.
A single plant-wide rate based on labor hours only
B.
Activities that consume resources, using cost drivers
C.
Selling price
D.
Number of employees
Correct answer is:
B. Activities that consume resources, using cost drivers
Do you agree with this answer?
The Public Account of the Federation is used for:
A.
Paying salaries only
B.
Moneys received by the Government other than the Consolidated Fund, such as deposits and trust funds
C.
Voting on the budget
D.
Collecting customs duty
Correct answer is:
B. Moneys received by the Government other than the Consolidated Fund, such as deposits and trust funds
Do you agree with this answer?
Relevant costs are costs that:
A.
Have already been paid
B.
Are the same under all alternatives
C.
Include all allocated overheads
D.
Are future costs and differ between alternatives
Correct answer is:
D. Are future costs and differ between alternatives
Do you agree with this answer?
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