principls of auditng

Please put the answer code only, please answer all the questions

Which of the following has a direct effect on the financial statements? a) Compliance with the terms of operating license b) Compliance with regulatory solvency requirements c) Compliance with environmental regulations d) None of the above 34. Accountants and auditors can benefit the society by... a) Efficient allocation of resources b) Avoiding the tax for the businesses c) Improving the quality standards of production d) Improving wealth of the accountants and auditors 35. An accountancy professional cannot work as ... a) Academician b) Production expert c) Tax consultant d) Internal Auditor 36. Responsibility for frauds and errors in financial statements lies with ... a) The government b) Both the auditor and the management of and entity c) The management of an entity d) The auditor 37. Purposes of internal control in an organization does not include... a) Manipulation of accounting data b) Adherence to policies c) Reliable financial information d) Safeguard of assets 38. By studying the internal control of an entity, an auditor can ... a) Threaten the management b) Help the government to charge more tax c) Determine the scope of audit d) Understand how to make profit 39. Effective internal control can benefit a) Both the entity and for b) Neither the entity to the auditor c) The entity d) The wuditor 40. Control environment depends on a) Management's philosoply b) Organization's structure c) Competence of the entity's people d) All the above Section B: Multiple Choice Questions (15Q1M = 15 MARSS) Write the answers to these questions in space provided in the table given in Pope 41. Saeed wants to buy the business of Ali for OMR 200,000. The average profies are OMR 40,000 per year. Salaries constitute 40% of the total expenses while stationery constitutes OMR 800. Wich the following is true in this it! a) Salaries are material expenses b) Stationery is a material expense c) Both salaries and Stationery are material d) Neither salaries nor stationery are material expenses 42. The category of assertion that needs to be verified by an auditor in relation to inclusion of all assets and liabilities is a) Accuracy b) Existence or occurrence c) Completeness d) Rights and Obligations 43. The tests conducted to examine the validity and propriety of accounting treatment of transactions and balance is a) No trial b) Document Trial c) Substantive test d) Physical examination