NATIONAL UNIVERSITY OF SCIENCE AND TECHNOLOGY
DEPARTMENT OF ACCOUNTING
FIRST SEMESTER EXAMINATION – APRIL 2009
AUDIT SKILLS CAC 2103
TIME ALLOWED: 3 HOURS
INSTRUCTIONS
1) Answer all questions from Sections A and sections B
2) A quarter mark will be deducted for each incorrect answer in Section A.
3) Indicate the best answer by writing the appropriate letter in your answer sheet for
each of the multiple choice questions.
4) Return your question paper to the invigilator - Section A only.
SECTION A – TOTAL 15 MARKS
SECTION B – TOTAL 85 MARKS
QUESTION TOPIC MARKS
1 SCOPE OF AUDITING 30
2 INTERNAL CONTROLS 30
3 AUDIT OPINION 25
Page 1 of 6
, 1) For effective internal control purposes, which of the following individuals
should be responsible for mailing signed cheques?
A Payroll Clerk.
B Creditors Clerk.
C Treasurer.
D Receptionist.
2) In properly designed internal accounting control systems, the same
employee should not be permitted to:
A) Sign cheques and cancel supporting documents.
B) Receive merchandise and prepare a receiving report.
C) Prepare disbursement vouchers and sign cheques.
D) Initiate a request to order merchandise and approve merchandise.
3) In auditing, the materiality concept implied that;
A) The auditor should concentrate on information that is important.
B) The auditor should concentrate on financial information that if important
and put less emphasis on the less significant accounts and transactions.
C) The auditor should only look at items which are likely to contain errors.
D) The auditor should only look at items which he is likely to include in his
sample.
4) To gather evidence regarding the balance per bank in a bank
reconciliation, an auditor would examine all of the following except;
A) Cut off bank statements.
B) Year end bank statements.
C) Bank confirmation.
D) General ledger.
5) Unrecorded liabilities are most likely to be found during the review of
which of the following documents.
Page 2 of 6
DEPARTMENT OF ACCOUNTING
FIRST SEMESTER EXAMINATION – APRIL 2009
AUDIT SKILLS CAC 2103
TIME ALLOWED: 3 HOURS
INSTRUCTIONS
1) Answer all questions from Sections A and sections B
2) A quarter mark will be deducted for each incorrect answer in Section A.
3) Indicate the best answer by writing the appropriate letter in your answer sheet for
each of the multiple choice questions.
4) Return your question paper to the invigilator - Section A only.
SECTION A – TOTAL 15 MARKS
SECTION B – TOTAL 85 MARKS
QUESTION TOPIC MARKS
1 SCOPE OF AUDITING 30
2 INTERNAL CONTROLS 30
3 AUDIT OPINION 25
Page 1 of 6
, 1) For effective internal control purposes, which of the following individuals
should be responsible for mailing signed cheques?
A Payroll Clerk.
B Creditors Clerk.
C Treasurer.
D Receptionist.
2) In properly designed internal accounting control systems, the same
employee should not be permitted to:
A) Sign cheques and cancel supporting documents.
B) Receive merchandise and prepare a receiving report.
C) Prepare disbursement vouchers and sign cheques.
D) Initiate a request to order merchandise and approve merchandise.
3) In auditing, the materiality concept implied that;
A) The auditor should concentrate on information that is important.
B) The auditor should concentrate on financial information that if important
and put less emphasis on the less significant accounts and transactions.
C) The auditor should only look at items which are likely to contain errors.
D) The auditor should only look at items which he is likely to include in his
sample.
4) To gather evidence regarding the balance per bank in a bank
reconciliation, an auditor would examine all of the following except;
A) Cut off bank statements.
B) Year end bank statements.
C) Bank confirmation.
D) General ledger.
5) Unrecorded liabilities are most likely to be found during the review of
which of the following documents.
Page 2 of 6
