1. To test whether sales have been recorded, the auditor should draw a sample from a file of

A) Purchase orders
B) Sales orders
C) Sales invoices
D) Bill of loading



2. For vouching of which item, the auditor is most likely to examine cost records

A) Commission earned
B) Bad debt recovered
C) Credit sales
D) Sale of scrap



3. While verifying intangible assets, an auditor would recompute amortization charges and determine whether amortization period is reasonable. The auditor tries to establish __________________ by doing it

A) Valuation
B) Existence
C) Disclosure
D) Possession



4. Which of the following is not an example of revenue expenditure

A) Salaries and wages of employees engaged directly or in-directly in production
B) Repairs, maintenance and renewals of fixed assets
C) Legal and professional expenses
D) Development expenditure on land



5. Which of the assets is least likely to be subjected to lien

A) Freehold land
B) Plant and machinery
C) Leasehold property
D) Motor vehicles