FPSC senior auditor (BS-16) solved past papers questions with answers and solutions. The senior auditor test contains 100 MCQs from: English grammar, accounting principles and procedures, scrutiny of record for audit purposes, journal, ledger & cash book, preparation of annual budget, adjustment & depreciation, financial planning & cost accounting, heads of account, re-appropriation of funds and supplementary grant, settlement of audit objections, preparation of pension documents. public procurement rules 2004. Following are solved questions (MCQs) from past FPSC senior auditor test papers.
Q. The value of non-current assets declines gradually because of:
(a) Realisation
(b) Inflation
(c) Depreciation
(d) None of these
Answer: (c) Depreciation
Q. According to which concept business is treated as a unit apart from owner:
(a) Entity concept
(b) Divider concept
(c) Landlord concept
(d) Dual concept
Answer: (a) Entity concept
Q. Inspection report supports entries in:
(a) Sales return book and sales book
(b) Sales books and purchase return book
(c) Purchase book and sales return book
(d) none of these
Answer: (c) Purchase book and sales return book
Q. Sales budget must be prepared:
(a) Independently
(b) Based on production capacity
(c) Based on Sales forecasts of the market
(d) None of these
Answer: (c) Based on Sales forecasts of the market
Q. Quick Ratio can be computed as under:
(a) QR = Assets / Quick Liabilities
(b) QR = Liabilities Current Assets
(c) QR = Current Assets/ Current Liabilities
(d) None of these
Answer: (c) QR = Current Assets/ Current Liabilities
Q. Formula to calculate prime cost is:
(a) Cost of raw material + direct labour
(b) Manufacturing cost + cost of goods sold
(c) Direct material + factory overhead
(d) None of above
Answer: (a) Cost of raw material + direct labour
Q. Under declining balance method deprecation is calculated on:
(a) Market value
(b) Book value
(c) Salvage value
(d) Depreciable cost
Answer: (b) Book value
Q. Which of the following is not recorded in the books of accounts?
(a) Sales tax
(b) Purchase discount
(c) Sales discount
(d) All of these
Answer: (a) Sales tax
Q. Which type of assets are not recorded in the books of accounts?
(a) Tangible assets
(b) Intangible assets
(c) Fixed assets
(d) None of these
Answer: (b) Intangible assets
Q. Deferred cost is a/an:
(a) Liability
(b) Expense
(c) Asset
(d) None of above
Answer: (c) Asset
Q. Which of the following assets is least likely to be subjected to lien?
(a) plant and machinery
(b) leasehold property
(c) freehold land
(d) none of these
Answer: (b) leasehold property
Q. An auditor is most likely to examine the related party transaction very carefully while vouching:
(a) credit purchase
(b) credit sale
(c) purchase return
(d) sale return
Answer: (a) credit purchase
Q. Subscription received in advance during the accounting year is:
(a) A liability
(b) An asset
(c) An expense
(d) An income
Answer: (a) A liability
Q. All fixed assets depreciated except:
(a) Furniture
(b) Land
(c) Building
(d) Machine
Answer: (b) Land
Q. Difference between the sum of two sides of an Account is called?
(a) Trial Balance
(b) Balance
(c) Profit
(d) None of these
Answer: (b) Balance
Q. The ability of a business to pay its debt is called:
(a) Solvency
(b) Consolidation
(c) Liquidity
(d) None of these
Answer: (a) Solvency
Q. Withdrawal of the inventory by the owner for personal use should appear in the trading account as a deduction from:
(a) sales
(b) drawings
(c) overdrafts
(d) purchases
Answer: (d) purchases
Q. Straight line method is also known as:
(a) Production Method
(b) Fixed Instalment Method
(c) Year’s Digit Method
(d) Reducing Balance Method
Answer: (b) Fixed Instalment Method
Q. Depreciable amount =
(a) Cost of an asset – Residual value
(b) Cost of an asset + Residual value
(c) Residual value – Cost of an asset
(d) None of these
Answer: (a) Cost of an asset – Residual value
Q. The ability to convert assets into cash is called:
(a) Liquidity
(b) Solvency
(c) Profitability
(d) All of these
Answer: (a) Liquidity
Q. Financial planning starts with the preparation of:
(a) Cash budget
(b) Balance sheet
(c) Master budget
(d) None of these
Answer: (d) None of these
Q. Which from the following is NOT a non-current asset?
(a) Capital
(b) Property
(c) Patent rights
(d) Inventory
Answer: (d) Inventory
Q. Current assets are compared with ______ in current ratio.
(a) Fixed assets
(b) Current liabilities
(c) current profit
(d) None of these
Answer: (b) Current liabilities
Q. Advance payments are recognised as:
(A) Payable
(B) Receivable
(C) Bad debt
(D) None of these
Answer: (B) Receivable
Q.Difference between the sum of two sides an Account is called?
(a) Trial Balance
(b) Balance
(c) Profit
(d) None of these
Answer: (b) Balance
Q. The financial statements of limited companies in Pakistan are prepared in accordance with:
(a) Company Ordinance 1984
(b) IAS adopted in Pakistan
(c) Company law
(d) Both A and B
Answer: (d) Both A and B
Q. The cost of assets after the expiry of its useful life is called:
(a) Written down value
(b) Residual value
(c) Market value
(d) None of these
Answer: (b) Residual value
Q. What standards from the following are used to prepare financial statements by most of the countries and companies:
(a) International Financial Reporting Standards
(b) International Financial Accounting Standards
(c) International Accounting & Auditing Standards
(d) International Risk Reporting Standards
Answer: (a) International Financial Reporting Standards
Q. Income Tax rate are same for:
(a) Limited companies
(b) Banking companies
(c) Public Companies
(d) All of above
Answer: (b) Banking companies
Q. Depreciation is provided on:
(a) Outward charges
(b) Tangible assets
(c) Fixed assets
(d) Current assets
Answer: (c) Fixed assets
Q. Goodwill is a/an:
(a) Current asset
(b) Quick asset
(c) Fixed Asset
(d) Intangible asset
Answer: (d) Intangible asset
Q. When expenditures exceeds over income is known as:
(a) Surplus
(b) Deficit
(c) Capital
(d) Both A and B
Answer: (b) Deficit
Q. Basic objectives of cost accounting is:
(a) Tax compliance
(b) Cost ascertainment
(c) Loss Analysis
(d) All direct cost
Answer: (b) Cost ascertainment
Q. Method of accounting for companies for business income is:
(a) Cash accounting
(b) Accrual accounting
(c) Both a and b
(d) None of above
Answer: (b) Accrual accounting
Q. The Balance of the petty cash is _______.
(a) liability
(b) an expense
(c) an asset
(d) An income
Answer:
Q. In AAS1 how many principles are listed, which governs auditor’s professional obligation?
(a) Seven
(b) Nine
(c) Eleven
(d) Fourteen
Answer: (b) Nine
Q. Variable cost and fixed have been treated as product cost in:
(a) Full costing
(b) Direct costing
(c) Absorption costing
(d) All of above
Answer: (C) Absorption costing
Q. If a car costs Rs, 12,50,000, its accumulated depreciation is Rs, 2,40,000; depreciation charged for the year is Rs, 80,000. What will be the book value at the end of the period?
(a) 11,70,000
(b) 11,00000
(c) 10,10,000
(d) 320,000
Answer: (c) 10,10,000
Book value = Cost of asset – Accumulated depreciation
Q. Deferred Taxation is :
(a) Part of owners equity
(b) Outward charges
(c) Fixed Assets
(d) None of these
Answer: (a) Part of owners equity
Q. Antonym of “Wrangle” is:
(a) Deny
(b) Submit
(c) Agree
(d) Gentle
Answer: (c) Agree
Q. Synonym of “Awkward” is :
(a) Clumsy
(b) Clever
(c) Curse
(d) Abate
Answer: (a) Clumsy
Q. Book keeping is mainly concerned with:
(a) Preparation of trial balance
(b) Recording of transaction in the books of accounts
(c) Entry at two dates
(d) Entry in journal and general ledger
Answer: (b) Recording of transaction in the books of accounts
Q. Withdraw cash for personal use is called:
(a) Capital
(b) Commission
(c) Drawing
(d) Liability
Answer: (c) Drawing
Q.Depreciation is provided on which assets?
(a) Tangible assets
(b) Fixed assets
(c) Current assets
(d) All of these
Answer: (b) Fixed assets
Q. Auditing is the branch of:
(a) Economics
(b) Financial accounting
(c) Accounting
(d) Statistics
Answer: (c) Accounting
Q. Receipts and payments account is the summary of:
(a) Purchase book
(b) Sales book
(c) Cash book
(d) Balance sheet
Answer: (c) Cash book
Q. Ordinary’s shares are the company’s :
(a) Capital
(b) Assets
(c) Liability
(d) None of these
Answer: (a) Capital
Q. Formula to calculate prime cost is:
(a) Cost of goods sold/ manufacturing cost
(b) Direct Material + Direct labour
(c) Cost of goods sold – Direct labour
(d) None of these
Answer: (b) Direct Material + Direct labour