1. Which of the following is not true with regard to verification of assets?

A) It invoices substantiation of occurrence of transactions
B) Its objective is to establish existence, ownership, possession, valuation and disclosure of assets
C) The auditor has to form an opinion on different aspects
D) All are true



2. ABCâ??s investee company-XYZ declares final dividend for financial year 2016-17 in the meeting of board of directors held on April 10, 2017. In which financial year should ABC account for the dividend income :

A) Proportionately i.e. considering 10 days of financial year 2017-18 and 355 days of financial year 2016-17
B) Financial year 2016-17
C) Financial year 2017-18
D) Equally between financial year 2016-17 and financial year 2017-18



3. Which of the following controls would ensure that securities are not lost, stolen or diverted?

A) Establish physical barriers over investment securities
B) Maintain files of authorized signatures
C) Segregate investment approval form accounting and form custody of securities
D) All of the above



4. Which of the following is not correct w.r.t voucher

A) All the vouchers should be serially numbered
B) All the vouchers should be properly dated
C) Purchase vouchers should be within the name of supplier
D) None of these



5. One case of sales return, the auditor should examine which of the following document

A) Credit notes, advice notes and inward return notes
B) Debit notes, advice notes and inward return notes
C) Purchase invoices, advise notes and inward return notes
D) Credit notes, inspection report and inward return notes