Senior Auditor 2017 Past Paper conducted by Federal Public Service Commission. Following multiple choice questions mcqs were asked in past papers of Senior Auditor 2018 Batch 3 which will be helpful in preparation of the test according to syllabus 2019. You can download it from below given link in pdf.
Past Paper of Senior Auditor 2017
Check below the complete Solved past paper of Senior Auditor 2017.
1. __________ the bad weather, the outdoor party was rescheduled.
(A) Because of
(B) In order to
(C) Despite
(D) None of these
2. __________ loosing the first match, our team has won the world cup.
(A) Because of
(B) In order to
(C) Despite
(D) None of these
3. You are wearing an army's uniform, but the __________ is missing.
(A) Epic
(B) Epoch
(C) Epithet
(D) None of these
4. University professors visit the website wwwsheirorg and ___________ the data.
(A) Inform
(B) Appraise
(C) Apprise
(D) None of these
5. I am afraid __________ cats.
(A) To
(B) From
(C) Of
(D) None of these
6. We did not have __________ questions for the lecturer.
(A) Any
(B) Some
(C) None of these
7. Although its publicity has been ___, the film itself is intelligent, well-acted, handsomely produced and altogether ___
(A) Tasteless … respectable
(B) Extensive … moderate
(C) Sophisticated … moderate
(D) None of these
8. Why are you still sleeping? you 'll be late. _ of bed now.
(A) Get up
(B) Get out
(C) Out
(D) None of these
Answer: ?
9. If I had money, I __________ it now.
(A) will purchase
(B) Would purchase
(C) Would have purchased
(D) None of these
10. The man __________ you met is an anchorperson.
(A) Who
(B) Whose
(C) Whom
(D) None of these
11. The woman __________ is standing by the table works in electronic media.
(A) Who
(B) Whose
(C) Whom
(D) None of these
12. If humans were totally deprived of sleep, they ________ hallucinations, anxiety, coma, and eventually, death.
(A) Would experience
(B) Experience
(C) Would have experienced
(D) None of these
13. He is looking for accommodation __________ in flat or shared house.
(A) Both
(B) Either
(C) Until
(D) None of these
14. You can go neither by train __________ by bus.
(A) No
(B) Nor
(C) Or
(D) None of these
15. Before designing a public park, the architect must __________ the public.
(A) Consider
(B) Considers
(C) Recognize
(D) None of these
16. When she was younger, she __________ five kilometers a day.
(A) Walked
(B) Had walked
(C) Has been walking
(D) None of these
17. To check for acidity, one had better ________ litmus paper.
(A) Use
(B) Using
(C) To use
(D) None of these
18. The house is large __________ is quite old-fashioned.
(A) And
(B) Or
(C) But
(D) None of these
19. We need to find __________ method to solve this problem.
(A) Other
(B) The other
(C) Another
(D) None of these
20. The students in our school are __________ in other schools.
(A) Smarter
(B) Smarter than
(C) Smarter than those
(D) None of these.
Answer: Smarter than those
Professional Test (80 Marks)
21. __________ is a systematic examination of the books and records or a business.
(A) Auditing
(B) Vouching
(C) Verification
(D) Checking
22. Management audit otherwise called as _______
(A) Final audit
(B) Efficiency audit
(C) Cost audit
(D) Cash audit
23. For which of the following organization Audit is optional
(A) Organization
(B) Joint stock company
(C) Partnership concern
(D) None of these
24. Auditor is ________
(A) A member of the company
(B) The agent of the of the company
(C) The agent of the central government
(D) An assistant to accountant
25. Prospectus is a document _________
(A) Containing the rules and regulations of the company
(B) Containing details about the manufacturing process of the company
(C) Containing details about the share capital of the company
(D) Containing the information of the sales
26. A sale of Rs. 50000 to Mr. A was entered as a sale to Mr. B. This is an example of
(A) Error of omission
(B) Error of commission
(C) Compensating error
(D) Error of principle
27. Preliminary expenses are the best example for _________
(A) Fictitious asset
(B) Intangible asset
(C) Wasting asset
(D) Floating asset
28. Capital reserves are created out of profits of __________
(A) A revenue nature
(B) A capital nature
(C) A secret reserve
(D) Contingency reserve
29. The main objects of investigation is _________
(A) To discover errors and frauds
(B) To prevent errors and frauds
(C) To verify statements
(D) All the above
30. The cost of the asset after the expiry of its useful life is called___________
(A) Written down value
(B) Residual value
(C) Expired value
(D) None of the given options
31. Excess of debit over credit is called:
(A) Opening balance
(B) Closing balance
(D) Debit balance
(D) Credit balance
32. Manufacturing overhead cost would include
(A) A marketing cost related to selling the product
(B) The salary of production line supervisor
(C) The chief executive officer salary
(D) Research and development cost of a new product
33. The distinction between revenue account and capital account is necessary for the preparation of
(A) Final accounts
(B) Receipt and payment account
(C) Cash flow statement
(D) Funds flow statements
34. Depreciation of machinery will be shown in the profit & loss account under the head of
(A) Selling expense
(B) Administrative Expenses
(C) Marketing expense
(D) Financial expense
35. The accounting system, in which accounting entries are made on the basis of amount having become due for payment or receipt is known as:
(A) Cash system of accounting
(B) Current accounting period
(C) Accrual system of accounting
(D) None of the given options
36. Assets which have no physical existence and which cannot be seen, touched or felt are called
(A) Current assets
(B) Tangible assets
(C) Fictitious assets
(D) Intangible assets
37. Overhead cost is the total of ____________
(A) All indirect costs
(B) All direct costs
(C) Indirect and direct costs
(D) All specific costs
38. Cost of sales plus profit is __________
(A) Selling price
(B) Value of finished product
(C) Value of goods produced
(D) Value of stocks
39. Depreciation of plant and machinery is a part of ___________
(A) Factory overhead
(B) Selling overhead
(C) Distribution overhead
(D) Administration overhead
40. The ratios which reflect managerial efficiency in handling the assets is__________
(A) Turnover ratios
(B) Profitability ratios
(C) Short term solvency ratio
(D) Long term solvency ratio
41. Return on equity is also called
(A) Return on investment
(B) Gross profit ratio
(C) Return on shareholders’ fund
(D) Return on net worth
42. ______ involves the sale of used securities from one investor to another
(A) Primary market
(B) Secondary market
(C) Tertiary market
(D) None of these
43. The process of planning and managing a firm's long-term investments is called:
(A) Planning Process
(B) Capital Structure
(C) Capital Budgeting
(D) Managing Process
44. An equal increase in both current assets and current liabilities would
(A) No affect on current ratio
(B) Increase current ratio
(C) Decreases current ratio
(D) None of these
45. _________are short-term, temporary investments that can be readily converted into cash.
(A) Marketable securities
(B) Cash equivalents
(C) Treasury bills
(D) All of the given options
46. When bank statement shows a debit balance, it means?
(A) Overdraft balance as per cash book
(B) Unfavorable balance as per cash book
(C) Unfavorable balance as per bank book
(D) None of the above
47. The accounting system, in which accounting entries are made on the basis of amount having become due for payment or receipt, is known as?
(A) Cash system of accounting
(B) Current accounting period
(C) Accrual system of accounting
(D) None of the given options
48. Test of control is not associated with
(A) Existence of control
(B) Effectiveness of control
(C) Continuous of control
(D) Designing of control
49. The comparison of net profit with the sales of the same year is
(A) Vertical comparison
(B) Horizontal comparison
(C) None of these
50. The term organization means
(A) Management of the business
(B) Accomplishment of goals or objectives by all means
(C) The process of assigning duties to individuals to achieve goals or objectives
51. When shares are forfeited, the share capital account is debited with the
(A) Nominal value of share
(B) Paid up value of share
(C) Called up value of share
(D) None of these
52. Two companies X co and y co go into liquidation and a new co z is formed then it is known as--------------
(A) Absorption
(B) External reconstruction
(C) Amalgamation
(D) None of these
53. Financial accounting reports are prepared primarily:
(A) To value the property of the company
(B) To show managers the results of their departments
(C) To help people make decisions about resource allocation
(D) To show the value of shares in the company
54. Stock in trade is valued
(A) At cost price price
(B) At market price
(C) At cost or market whichever is less
(D) At cost less market price
55. Share may be issued
(A) At par
(B) At discount
(C) At premium
(D) All of these
56. Current ratio is
(A) Short term solvency ratio
(B) Long term solvency ratio
(C) Profitability ratio
(D) Turnover ratio
57. The ratio which shows the proportion of profits retained in the business out of the current year's profits is__________
(A) Retained earnings ratio
(B) Pay out ratio
(C) Earnings per share
(D) Price earnings ratio
58. Trading & Profit & loss account and balance sheet is prepared from
(A) Ledger balance
(B) Ledger balances, cash and bank balances
(C) Cash book and bank book
(D) Trial balance
59. The amount of resources supplied by the owner in business is called:
(A) Investments
(B) Assets
(C) Capital
(D) Reserves
60. The process of recording the economic effects of business transactions in a book of
(A) original entry is known as which of the following?
(B) Double entry system
(C) Journalizing
(D) Debit
(E) Posting
61. Partners in Pakistan can today be fixed at the following numbers
(A) 20
(B) 50
(C) 75
(D) None of these
62. Economic resources of a business that are expected to be of benefit in the future are referred to as
(A) Liabilities
(B) Owner’s equity
(C) Withdrawals
(D) Assets
63. Any expenditure incurred to increase the profit earning capacity of the concern is a Revenue expenditure
(A) Capital expenditure
(B) Deferred revenue expenditure
(C) None of these
64. Credit terms identify what ?
65. Which of the following options indicate how quickly accounts receivables are converted into cash?
(A) Accounts receivable turnover
(B) Days to collect accounts receivable
(C) Working capital turnover
(D) Total assets turnover
66. Which of the following principle deals with the valuation and recording of asset at cost
(A) Entity principle
(B) Matching principle
(C) Cost principle
(D) Dollar currency principle
67. The main electronic component used in first generation computers was
(A) Transistors
(B) Vacuum Tubes and Valves
(C) Integrated Circuits
(D) None of above
68. Which of the following is the most powerful computers?
(A) Mainframe Computer
(B) Mini Computers
(C) Micro Computers
(D) Super Computers
69. Assembly language started to be used from
(A) First generation computers
(B) Second generation computers
(C) Third generation computers
(D) Fourth generation computers
70. The auditor is most likely to examine related party transactions very carefully while vouching
(A) Credit sales
(B) sales returns
(C) Credit purchases
(D) Cash purchases
71. A shareholder in a company
(A) Can be its debenture holder
(B) Cannot be its debenture holder
(C) Can be member of board of directors
(D) Can be liable to unlimited entry
72. Production function refers
(A) Cost to input
(B) Wages to profit
(C) Cost to output
(D) Input to output
73. The board of directors shall appoint first auditor of a company ___________
(A) within one month of completion of capital subscription state of the company
(B) within one month of the promotion of the company
(C) within one month of the commencement of the business of the company
(D) within one month of incorporation of the company
74. Real accounts are related with
(A) Assets
(B) Expenses and incomes
(C) Customers and creditors
(D) None of these
75. Which of the following is the acronym for GAAP?
(A) Generally Applied Accountability Principles
(B) General Accounting Assessment Principles
(C) Generally Accepted Accounting Principles
(D) General Accepted Assessment Principles
76. Which of the following is not among the five main kinds of current asset?
(A) Cash and equivalents
(B) Deferred income
(C) Accounts receivable
Prepaid expenses
77. The audit is not a necessary requirement for which of the following companies.
(A) Limited companies
(B) Corporation
(D) Sole proprietorship
(D) Partnerships
78. Which of the following feature is shown by the income statement for a merchandising company?
(A) Gross profit
(B) Cost of goods sold
(C) sales revenue section
(D) All of the given options
79. Which one of the following is temporary account?
(A) Cash
(B) Accounts receivables
(C) Insurance expense
(D) Accounts payable
80. An entry that affects more than oe accounts is known as
(A) Journal entry
(B) Composed entry (compound entry)
(C) Adjusting entry
(D) Reversing entry
81. A bank offers 20% compounded monthly. What would be the effective annual rates of return?
(A) 20.00%
(B) 20.50%
(C) 21.00%
(D) 21.99%
82. The discount account is a
(A) Personal account
(B) Real account
(C) Nominal account
(D) Asset account
83. Direct expenses are charged on
(A) Balance sheet
(B) Profit & loss account
(C) Trading account
(D) None of these
84. Heavy expenditures on advertisement of a new product is a
(A) Capital expenditure
(B) Revenue expenditure
(C) Deffered revenue expenditure
(D) None of these
85. Which one of these is considered as a non cash item?
(A) Inventory
(B) Accounts payable
(C) Accounts receivable
(D) Depreciation
86. Costing stock appearing in trial balance will be taken to
(A) Trading account only
(B) Balance sheet only
(C) Trading account and balance sheet
(D) Profit and loss account only
87. Dividends are usually paid on
(A) Authorized capital
(B) Issued capital
(C) Paid up capital
(D) None of these
88. The current account of a partner
(A) Always has a credit balance
(B) Always has a debit balance
(C) Always has no balance
(D) May have a debit balance ar credit balance
89. Wages are paid to a labur, who was engaged in production activities can be termed as
(A) Direct cost
(B) Indirect cost
(C) Sunk cost
(D) imputed cost
90. The ratios which reveal the final result of the managerial policies and performance is
(A) Turnover ratios
(B) Profitability ratios
(C) Short term solvency ratio
(D) Long term solvency ratio
91. Sales Rs. 25000 Variable cost Rs. 8000 Fixed cost Rs. 5000 Break even sales in value
(A) Rs. 7936
(B) Rs. 7353
(C) Rs. 8333
(D) Rs. 9090
92. Which of the following term refers to the use of debt financing?
(A) Operating Leverage
(B) Financial Leverage
(C) Manufacturing Leverage
(D) None of these
93. Which of the following statement shows assets, liabilities and net worth as on a specific date?
(A) Income Statement
(B) Balance Sheet
(C) Owner’s Equity Statement
(D) Cash Flow Statement
94. Which one of the following is not a form of business organization?
(A) Sole proprietorship
(B) Partnership
(C) Joint stock company
(D) Co-operative society
95. In which type of business, all owners share in gains ans losses and all have unlimited liabilities for all business debts?
(A) Sole proprietorship
(B) General partnership
(C) Limited partnership
(D) Corporation
96. A borrower is able to pay Rs. 40000 in 5 years. Given a discount rate of 12 percent. What amount of money the lender should lend?
(A) Rs. 14,186
(B) Rs. 18,256
(C) Rs. 22,697
(D) Rs. 28,253
97. Rule of 72 for finding the number of periods is fairly applicable to which of the following range of discount rates?
(A) 2% to 8%
(B) 4% to 25%
(C) 5% to 20%
(D) 10% to 50%
98. Which one of the following is the rate of return that firm’s creditors demand on new borrowing?
(A) Cost of debt
(B) Cost of preferred stock
(C) Cost of common stock
(D) Cost of retained earnings
99. The difference between an investments market value and its cost is called ----------- of the investment?
(A) Net present value
(B) Economic value
(C) Book value
(D) Future value
100. A model which makes an assumption about the futue growth of dividends is known as
(A) Dividend price model
(B) Dividend growth model
(C) Dividend policy model
(D) All of these
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Senior Auditor Solved Past Paper 2018
