1. Which of the following document is not relevant for vouching of cash sales?

A) Daily cash sales summary
B) Salesmanâ??s summary
C) Monthly statements sent to customers
D) Bank Statement



2. Obtaining trade receivables ageing report and identification of doubtful debts is performed during audit of accounts receivable balances to address the following balance sheet assertion

A) Valuation
B) Rights and obligations
C) Existence
D) Completeness



3. Wages paid to workers would always qualify as :

A) Revenue expenditure
B) Capital expenditure
C) Revenue or capital expenditure depending upon facts and circumstances
D) None of the above



4. Which of the following would give the assurance that debtors mentioned on the date of balance sheet actually exist?

A) Sending debtorâ??s confirmation letters
B) Reviewing subsequent collection
C) Verify debtors against sales document
D) Both (a) & (b)



5. All inventory units held by the audit entity and that should have been recorded, has been recognized in the financial statements. The assertion involved is:

A) Existence
B) Completeness
C) Rights and obligations
D) Valuation