The 'Materiality Level' in audit is set to: MCQ with Answer and Explanation

Question

Share Report Error

The 'Materiality Level' in audit is set to:

A. Avoid audit

B. Reduce sample size

C. Increase fees

D. Determine the significance of misstatements that could influence economic decisions

Answer: Option D

Solution (By JKSSB Mock Tests)

Materiality is a threshold to guide audit procedures and evaluation of misstatements.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1

The 'Input Service Distributor' (ISD) under GST distributes:

A. Goods

B. Input tax credit on services received by the head office to branches

C. Stock

D. Cash

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
ISD is an office that receives invoices for services and distributes credit to various units.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

A 'Flexible Budget' is also known as:

A. Master budget

B. Cash budget

C. Sliding scale budget

D. Fixed budget

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Flexible budget changes with activity levels, hence also called variable or sliding scale budget.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

The 'Voucher Number' should be:

A. Same for all

B. Random

C. Date-based

D. Sequential and unique

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Vouchers should be numbered serially for control and easy reference.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Explore All Accountancy and Book Keeping MCQs