Correct Answer:
C. Prevent one person from controlling authorization, custody and recording of a transaction
Separating incompatible duties reduces the chance of error and fraud going unnoticed.
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
The main purpose of segregation of duties is to:
Related MCQs
Key Audit Matters (KAMs) under ISA 701 are:
A.
Matters that always lead to a qualified opinion
B.
Fraud cases reported to police
C.
Items listed only in the management letter
D.
Matters of most significance in the audit of the current period, communicated in the auditor's report
Correct answer is:
D. Matters of most significance in the audit of the current period, communicated in the auditor's report
Do you agree with this answer?
Fiscal policy is the use of:
A.
Interest rates and money supply by the central bank
B.
Exchange rate controls only
C.
Government spending and taxation to influence the economy
D.
Foreign aid only
Correct answer is:
C. Government spending and taxation to influence the economy
Do you agree with this answer?
According to IAS 2, inventories are measured at:
A.
The higher of cost and selling price
B.
Selling price always
C.
The lower of cost and net realizable value
D.
Replacement cost only
Correct answer is:
C. The lower of cost and net realizable value
Do you agree with this answer?
A just-in-time (JIT) system aims to:
A.
Keep large safety stocks
B.
Reduce inventory by producing or buying only when needed
C.
Produce in large batches for future demand
D.
Increase the number of suppliers
Correct answer is:
B. Reduce inventory by producing or buying only when needed
Do you agree with this answer?
Job order costing is most suitable for:
A.
Custom-made products such as construction projects or printing orders
B.
Continuous production of identical items such as cement
C.
Oil refining
D.
Sugar milling
Correct answer is:
A. Custom-made products such as construction projects or printing orders
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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?
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