(A) cost

(B) Market price

(C) Cost or market price whichever is lower

(D) Cost less depreciation

(A) Kingston Cotton Mills case

(B) London Oil Storage Co. Case

(C) London and General Bank case

(D) None of the above

(A) Cost

(B) Market price

(C) Cost or Market price whichever is lower.

(D) Cost less depreciation.

(A) Examining the physical existence and valuation of assets.

(B) Examining the journal and ledger

(C) Examination of vouchers related to assets.

(D) None of the above.

(A) Substantive testing

(B) Planning stage

(C) Overall review stage

(D) All of the above

(A) It helps to study relationship among balance sheet accounts

(B) It helps to discover material misstatements in the financial statements

(C) It helps to identify possible oversights

(D)  It helps to accumulate evidence supporting the validity of a specific account balance

(A) Helps to determine the nature, timing and extent of other audit procedures

(B) Directs attention to potential risk areas

(C) Indicates important aspects of business

(D) All of the above

(A) Prior year’s errors

(B) The auditor’s remuneration

(C) Adjusted interim financial statements

(D) Prior year’s financial statements

(A) Amount of known misstatement is documented in working papers

(B) Estimates of the total likely misstatement is less than materiality level

 (C) Estimate of the total likely misstatement is more than materially level

(D) Estimates of the total likely misstatement cannot be made

(A) Lower, Higher, Lower

(B) Lower, Lower, Higher

(C) Higher, Lower, Lower

(D) Lower, Higher, Higher