Correct Answer:
B. Transactions and events are recorded in the correct accounting period
Cut-off tests make sure transactions near the year end are recorded in the correct period.
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
The cut-off assertion is concerned with whether:
Related MCQs
Audit of local government (local fund) accounts mainly examines:
A.
Only federal taxes
B.
Only foreign aid
C.
Receipts and expenditure of local bodies for compliance with applicable laws and rules
D.
Only defense spending
Correct answer is:
C. Receipts and expenditure of local bodies for compliance with applicable laws and rules
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?
Re-appropriation means:
A.
Transfer of funds from one head or sub-head to another within the same grant
B.
Returning all money to the treasury
C.
Taking a new foreign loan
D.
Writing off bad debts
Correct answer is:
A. Transfer of funds from one head or sub-head to another within the same grant
Do you agree with this answer?
Which type of audit evidence is generally the most reliable?
A.
Photocopies of documents provided by management
B.
Original documents obtained directly from an independent external party
C.
Oral explanations given by management
D.
Documents prepared by the entity's own staff
Correct answer is:
B. Original documents obtained directly from an independent external party
Do you agree with this answer?
Regularity audit in the public sector comprises:
A.
Performance audit only
B.
Financial audit and compliance audit
C.
Tax audit only
D.
Environmental audit only
Correct answer is:
B. Financial audit and compliance audit
Do you agree with this answer?
Goodwill arises in a business combination when:
A.
The fair value of net assets exceeds the purchase price
B.
A company issues bonus shares
C.
A company revalues property
D.
The purchase consideration exceeds the fair value of identifiable net assets acquired
Correct answer is:
D. The purchase consideration exceeds the fair value of identifiable net assets acquired
Do you agree with this answer?
Leave a Reply