WRITTEN TEST · written test held on 3rd november 2019 for junior auditor local audit department, u.t. chandigarh question booklet & answer-key

WRITTEN TEST

HELD ON 3rd NOVEMBER 2019

FOR

JUNIOR AUDITOR

LOCAL AUDIT DEPARTMENT, U.T. CHANDIGARH

QUESTION BOOKLET & ANSWER-KEY

Directions (Q.1 to 3): Mark the correct synonym of the given word: I. Sparse

A) scanty B) sudden C) shine D) dark 2. Squander

A) cut Evict A) attract

B) endanger C) waste 3.

B) tempt C) expel

D) brighten

D) panic Directions (Q. 4 & 5): Mark the correct meaning of the given idioms: 4. By fits and starts

A) sincerely B) cleverly C) stealthily D) irregularly 5 To be at one's wit's end

A) to befool others C) to be sad

Directions (Q. 6 to 8): Mark the correct opposite of the given word: 6. Spurious

A) attractive B) stormy C) calm D) authentic 7. Hedonistic

A) sacred B) sarcastic

B) to be quite puzzled D) to be delirious with joy

C) ascetic D) attentive 8. Implicate

A) absolve B) complain C) eradicate D) throw Directions (Q. 9 & 10): Mark the correct preposition to be filled in the blanks: 9. Are you going to put for that job?

A) at B) into C) out D) in 10. We set for London yesterday.

A)by B) off C) into D) to 11. The natives of New Zealand are known as:

\.. A) Maoris B) Masuds C) Magyars D) Croats

12. The battle of Waterloo was fought in: A) 1815 B) 1809 C) 1823 D) 1805

13. Capitalism is marked by all given below except: A) private ownership B) the elimination of financial risks C) the ability to make profits D) the laws of supply and demand

14. The name of the first woman President of Indian National Congress was: A) Pandita Rama Bai B) Aruna Asaf Ali C) Sarojini Naidu D) Annie Besant

15. The two day Summit-2019 of the G-20 countries held in --- A) London (U.K.) B) Osaka (Japan) C) Paris (France) D) Canberra (Australia)

16. Which new method has been proposed by the RBI to help the banks calculate their lending rates? A) OCLR B) PSLR C) IMLR D) MCLR

17. What is India's rank as per Global Competitiveness Index-2019, published by World Economic Forum: A) 68th B) 58th C) 77th D) 72nd

18. World Thrift Day is celebrated on _ A) 8th October B) 15th October C) 31st October

Ja(lad)-A/ Page 2 of 10

D) 25th October

19. Which of the following pairs of cricketers became the highest run scorer and highest wicket taker respectively in recently concluded ODI World Cup-2019 series? A) Rohit Sharma/Mitchell Stare B) Rohit Sharma/Jofra Archer C) David Warner/Jaspreet Bumrah D) Kane Williamson/Jofra Archer

20. Which of the following films won Best Hindi Film Award in 66th National Film Awards- 2019?

21. ,.

A) Uri : The Surgical Strike C) Toilet- Ek Prem Katha 4x32of75%+3=? A)32 B)45

B) Andhadhun D) Badhai Ho

C)44 D)43

22. In an examination, it is required to get 40% marks out of total marks to qualify. A candidate secured 150 marks and failed by 10 marks. What are the maximum marks of the examination? A)500 B)350 C) 400 D) 420

23. Nine friends have a dinner in a hotel. Eight of them spent Rs. 12/- each on their meals and the ninth spent Rs. 16/- more than the average expenditure of all the nine. Find out the total money spent by them. A) Rs. 126 B) Rs. 135 C) Rs. 111 D) Rs. 141

24. P, Q and R start a business. P invests 3 times as much as Q invests and Q invests 213rd as much as R invests. Find the ratio of capitals of P, Q and R. A) 3 : 2 : 6 B) 2 : 6 : 3 C) 6 : 2 : 3 D) 5 : 2 : 3

25. A and B together can complete a work in 3 days. They started together but after 2 days, B left the work. If the work is completed after 2 more days, then in how many days B alone could complete the work? A) 5 days B) 6 days C) 7 days D) 10 days

26. The banker's gain of a sum due 8 years hence at 24% per annum is Rs. 144. Find the present worth of that bill. A) Rs. 39.06 B) Rs. 45 C) Rs. 38.06 D) Rs. 50

27. The simple interest for certain sum in 2 years at 4% per annum is Rs. 80. What will be the compound interest for the same sum, if conditions of rate and time period are same? A) Rs. 91.60 B) Rs. 81.60 C) Rs. 71.60 D) Rs. 80

28. A sum of money amounts to Rs. 2750 in 2 years at 5% per annum. At what rate the same money amounts to Rs. 3000 in 2 years? A) 12% B) 10% C) 15% D) 20%

29. A man travels a distance at a speed of 8 km/hr and returns at a speed of 6 km/hr. If he takes

3 _!_ hr time in total journey, then how much distance he covered? 2

A) 25 km B) 28 km C) 24 km D) 30 km 30. In what ratio two types of tea costing Rs. 15 per kg and Rs. 20 per kg are mixed so that cost

price of the mixture is Rs. 16.50 per kg? A)5:6 B)4:3 C)6:7 D)7:3

31. In a certain language, 'pre not bis' means 'smoking is harmful', 'vog dor not' means 'avoid harmful habit' and 'dor bis yel' means 'please avoid smoking'. Which of the following means 'habit' in that language? N~ ~~ C)~ ~~

32. In this question four numbers are given. Out of these three are alike in a certain way but the fourth one is different. Choose the one which is different from the rest three. A) 125 B) 216 C) 729 D) 525


33. In this question, jumbled letters of a meaningful word are given. You are required to rearrange these letters and select from the given alternatives, a word which is almost opposite in meaning to the rearranged word: YPCUIAT A) Surplus B) Scarcity C) Presence D) Richness

34. Pointing to a photo of a girl, Rohit said, "She does not have any sister or daughter but her mother is the only daughter of my mother". What is the relation between the girl and Rohit? A) Daughter B) Niece C) Sister D) Daughter-in-Law

35. In the following question, a figure marked (X) is followed by four other figures (A), (B), (C) and (D) showing the possible water images of figure (X). Choose the correct water image of the figure (X) out of given four alternatives.

~~~~ X A B C D

36. Two positions of a dice are shown below. When 6 is at the bottom, what number will come at the top? -

(ii)

A) 1 (I)

B)2 C) 4 D)5

38.

37. In a class of 60, where number of girls are twice that of boys, Kamal ranked seventeenth from the top. If there are 9 girls before of Kamal, how many boys are after him in rank? A) 3 B) 7 C) ·12 D) 23

Directions (Q. No. 38 & 39) Read the following information carefully and answer the questions that follows:

Six lectures, A, B, C, D, E and F are to be organized in a span of seven days - from Sunday to Saturday, only one lecture on each day in accordance with the following :

(i) A should not be organized on Thursday (ii) C should be organized immediately after F (iii) There should be a gap of two days between E and D (iv) One day, there will be no lecture (Friday is not that day) just before that day D will

be organized (v) B should be organized on Tuesday and should not be followed by D On which day, there is no lecture? A) Monday B) Friday C) Sunday

39. Which day will the lecture F be organized? A) Thursday B) Friday C) Saturday

D) Cannot be determined

D) Sunday \

In the following question, various terms of an alphabet series are given with one term missing as shown by (?). Choose the missing term out of the given alternatives. Y, B, T, G, 0, ? A) N B) M C) L D) K

41. In a word processing software such as MS-WORD, to find a word to replace "happiness," use the: A) Spelling checker B) Dictionary C) Autocorrect feature D) Thesaurus

40. ..

42. MS-Word automatically moves the text to the next line when it reaches the right edge of the screen and is called? A) Form Feed B) Enter C) Word Wrap D) AutoText


43. In MS-WORD, what is gutter margin? A) Margin that is added to the left margin when printing B) Margin that is added to right margin when printing C) Margin that is added to the binding side of page when printing D) Margin that is added to the outside of the page when printing

44. Using the HDD as an extension of RAM is a feature of A) Virtual memory B) Cache C) Direct Memory Access D) Virtual Reality

45. In the context of MS-EXCEL, what happens when dollar signs ($) are entered in a cell address? (e.g. $B$2:$B$10) A) An absolute cell address is created. B) Cell address will change when it is copied to another cell. C) The sheet tab is changed. D) The status bar does not display the cell address.

Directions (Q. Nos. 46 & 47) consider the following worksheet: _B_ Test!_

80 70 so 120 40 30 701 30 32 62 85 85 170 65 80 145 72 96 168 25 32 57 90 78 168 25 40 65

,.

46. The formula= IF (B10 + ClO > 100, IF (D10 > 100, "A", "B"), "C") in cell D12 will result in A)A B)B C)C D)AC

47. The formula= SUMIF(B2:Bl 1, "<50", D2:Dl 1) in cell D13 will result in A) 120 B) 254 C) 90 D) 244

48. Tally - a popular accounting software used in most of the countries apart from its native country India, was developed by - A) Tally Peutronics Private Limited B) Tally Software Private Limited C) Tally Solutions Private Limited D) None of the above

49. Which language is directly understood by the computer without translation program? A) BASIC language B) Assembly language C) High level language D) Machine language

50. What is the full form of e-NAM, a pan-India electronic trading portal? A) e-Non-Aligned Movement B) e-National Agriculture Market C) e-National Advertising Market D) e-Naval Aviation Mission

51. According to going concern concept a business is viewed as having A) A limited life B) An indefinite life C) A very long life D) None of the above

52. The reserve not appearing in the balance sheet is known as: A) general reserve B) capital reserve C) secret reserve D) revaluation reserve

53. Which of the following is operating revenue for a trading company? A) Sales of merchandise B) Sale of old machinery C) Interest income on investments D) Dividends received

54. Sales return Rs. 2,500: Sales Rs. 12,800: Purchases Rs. 8,400: Gross profit Rs. 2,100. What is the amount of cost of goods sold? A) Rs. 10,700 B) Rs. 10,500 C) Rs.8,200 D) Rs.6,300


55. Debit balance of Receipts and Payments account of a club indicates A) The loss incurred during the period B) The excess of incomes over expenditure of the period C) The total cash payments during the period D) Cash in hand or bank balance on the date of the balance sheet

56. The amount listed for cash in the trial balance represents A) The cash at the beginning of the period B) Cash receipts during the period C) Cash disbursements during the period D) The balance of cash on the date of trial balance

57. At the time of dissolution, an unrecorded asset taken away by Mr. Vijay, a partner should be debited to A) Mr. Vijay's capital account C) Asset account

B) Realization account D) None of the above

60.

58. For which of the following purposes, share premium can be used? A) In writing off the discount on debentures of the company B) Issuing bonus shares C) In providing for the premium payable D) All of the above

59. X Ltd. forfeited 20 shares of Rs. 10 each, Rs. 8 called up and on which Rs. 4 per share were paid. These shares were reissued at Rs. 6 per share as Rs. 8 per share paid up. What would be the amount transferred to capital reserve? A) Rs. 20 B) Rs. 40 C) Rs.80 D) Rs. 100 The most rigorous test of liquidity is A) Current or working capital ratio C) Absolute liquidity or super quick ratio

B) Acid test or quick ratio D) Stock turnover ratio

61.

\.

Profit volume ratio is the A) Ratio between contribution and sales C) Ratio between profit & sales

B) Ratio between contribution and profit D) Ratio between contribution & margin of safety

63.

62. Prime cost is the aggregate of A) Indirect material cost, direct wages and direct expenses B) Direct material cost, direct wages and direct expenses C) Direct material cost, indirect wages and direct expenses D) Direct material cost, direct wages and indirect expenses Normal loss is a loss which A) Cannot be avoided C) Cannot be minimized

B) Can be avoided D) Cannot be reduced

65.

64. ABC analysis is a technique of material control based on: A) Management by Objectives (MBO) B) Management by Wandering Around (MBWA) C) Management by Exception (MBE) D) Management by Absence (MBA) Secret reserves may result by A) Creating general reserve C) Overvaluation of stocks

B) Providing excessive depreciation D) Undervaluation of liabilities

66. Market value of investments is shown as a footnote to the balance sheet according to A) Disclosure concept B) Consistency concept C) Materiality concept D) Any of these


69.

67. A sum of Rs. 4,000 was paid as compensation to two employees who were retrenched is a A) Capital expenditure B) Revenue expenditure C) Deferred revenue expenditure D) Deferred capital expenditure

68. How many debentures a company will be required to issue for satisfying the purchase considerations of Rs. 28, 80,000 if the debenture is of Rs. 80 and is issued at a premium of Rs. 10 per debenture? A) 28,800 B) 30,800 C) 32,200 D) 32,000 The net profit after tax of the firm .is Rs.1,50,000, preference dividend Rs. 25,000, taxes paid to the Government Rs.10,000, number of Equity share 1,00,000. What is the E. P. S.? A) Rs. 1.50 B) Rs. 1.25 C) Rs. 1. 15 D) Re. 1.00

70. If the liquidity of a firm is enhanced beyond genuine needs, it: A) Decreases the profitability B) Increases the profitability C) Does not have any impact on the profitability D) The impact on profitability cannot be ascertained

71. Following information is available in respect of a material item; minimum limit 500 units, maximum limit 2500 units, daily requirement of material 100 units, time required for fresh delivery 10 days. The ordering level will be A) 1000 units B) 1500 units C) 2000 units D) 2500 units

72. The gross profit margin is unchanged, but the net profit margin declined over the same period. This could have happened if A) Cost of goods sold increased relative to sales. B) Indirect expenses increased relative to sales. C) The Government increased the tax rate. · D) Dividends were decreased.

73. The term divisible profit means: A) Profit after tax B) Profit after interest and tax C) Profit before tax D) Profit which can be legally distributed to the shareholders of a company as dividend

74. Capital gearing denotes the relationship between A) Assets and Share Capital B) Fixed Expenses and variable expenses C) Equity shareholders' funds and long term borrowed funds D) Gross Working Capital and Net Working Capital

75. COSA stands for A) Cost of social accounting C) Cost of sales accounting

B) Cost of sales adjustment D) Cost of social adjustment

76. Auditor of a company is appointed for a period of A) One year B) Two years C) Five years D) From the conclusion of one annual general meeting to the conclusion of next annual

general meeting 77. Auditor of a public Company is appointed by

A) Company Secretary B) Shareholders in general meeting C) Board of Directors D) Controller of Capital issues

78. Which of the following is correct? A) Internal control is a part of internal check B) Internal check & internal audit are the same C) Internal audit is a part of internal control D) Internal control is a part of internal audit


81.

79. The date on auditor's report should not be: A) earlier than the date on which the accounts are approved by the management B) later than the date on which the accounts are approved in board's meeting C) the date of AGM D) Both (B) and (C)

80. In case the auditor gives a disclaimer of opinion in the audit report which of the following paragraph(s) of a standard unqualified audit report are modified? A) Scope paragraph B) Opinion paragraph C) Scope and opinion paragraphs - D) Introductory, scope and opinion paragraph

Internal check is concerned with A) Assignment of duties amongst staff C) Managing internal cash receipts

B) Fixation of wages and salaries D) Issuing and receiving cheques

85. \

82. Which of the following is most crucial to a purchase department? A) Reducing the cost of acquisition B) Selecting supplies C) Authorizing the acquisition of goods D) Assuring the quality of goods

83. In case of sales return, the auditor should examine which documents? A) Credit notes, advice notes and inward return notes B) Debit notes, advice notes and inward return notes C) Purchase invoices, advice notes and inward return notes D) Credit notes, inspection report and inward return notes

84. The C & AG, some years ago, gave adverse comments on expenditure incurred on buying coffins for soldiers killed in a war. In his opinion, the coffins cases imported could have been replaced with less expensive, domestically produced ones. This is an aspect of - A) Audit of sanctions B) Audit of stores and stocks C) Propriety audit D) Both (B) and (C) A departure from recognized accounting principle is disclosed in a note to the financial statements. The auditor should A) issue a standard unqualified audit report B) issue a qualified report C) issue an unqualified report with 'emphasis of matter' paragraph D) disclaim opinion

86. An auditor should study and evaluate internal control in order to; A) Determine whether assets are safeguarded B) Suggest improvements in internal control C) Plan audit work and procedure D) Express an opinion

87. Which of following will not affect audit in a CIS environment? A) The objective of expression of opinion on financial statements B) Compliance procedures adopted by the auditor C) Performance of substantive procedures D) Evaluation of inherent risk and control risk

88. Of the following, which is the least persuasive type of audit evidence? A) Bank statements obtained from the client B) Documents obtained by auditor from third parties directly C) Carbon copies of sales invoices inspected by the auditor D) Computations made by the auditor


89. Which among the following is NOT a function performed by SEBI ? A) Auditing/appointing rating agencies in India. B) Laying out norms for IPOs by companies. C) Fixing listing norms for companies' shares. D) All of these are the functions performed by SEBI.

91. ..

92.

90. Which of the followings is not an inherent limitation of internal control? A) Management override B) Collusion amongst employees C) Inefficiency of internal auditor D) Abuse of authority The completeness of "wages" figure can be tested by comparing the number of time cards to be processed with transaction on wages sheet. This type of control technique is called A) check total B) control total C) occurrence correction D) check digit

The statutory auditor of a Government Company submits his report to_ A) the BODs of the company B) the C & AG C) the Legislature D) the company secretary

93. Which of the following report does not result in qualification of the auditor's opinion due to a scope limitation? A) Restrictions the client imposed B) Reliance on the report of other auditor C) Inability to obtain sufficient appropriate evidential matter D) Inadequacy of accounting records

94. If the auditor is satisfied with the final accounts of a company, he will give a A) Satisfactory audit report B) Qualified audit report C) Unqualified audit report D) Conditional audit report

95. Which of the following factors is (are) considered in determining the sample size for tests of control? A) Projected error B) Tolerable error C) Expected error D) Both (A) & (C)

96. 'Goods sent on approval basis' have been recorded as 'Credit sales'. This is an example of : A) Error of principle B) Error of commission C) Error of omission D) Error of duplication

97. Which of the following statements is, generally, correct about the reliability of audit evidence? A) To be reliable, evidence should conclusive rather than persuasive B) Effective internal control system provides reliable audit evidence C) Evidence obtained from outside sources routed through the client D) All are correct

98.

\

A state Government spent rupees fifty lakhs on renovation of Raj Bhavan' for its Governor. In the C & AG's opinion, this expenditure was more than what occasion demanded? It is an example of- A) Propriety audit C) Audit against provision of funds

B) Performance audit D) None of the above

99. Which of the following is true about explanatory notes? A) These are given by the directors of the company B) These are given by the cost accountant C) These are given by auditors of the company in auditor's report D) All of the above

100. The risk of management fraud increases in the presence of: A) Frequent changes in supplies B) Improved internal control system C) Substantial increases in sales D) Management incentive system based on sales done in a quarter


KEY --- LOCAL AUDIT (JR. AUDITOR) 03-11-2019

Q.No. Ans Q.No. Ans Q.No. Ans Q.No. Ans

1 A 26 A 51 B 76 D

2 C 27 B 52 C 77 B

3 C 28 B 53 A 78 C ~

4 D 29 C 54 C 79 A

5 B 30 D 55 D 80 C

6 D 31 A 56 D 81 A

7 C 32 D 57 A 82 C

8 A 33 A 58 D 83 D

9 D 34 B 59 B 84 D

10 B 35 B 60 C 85 B

11 A 36 D 61 A 86 C

12 A 37 C 62 B 87 A

13 B 38 A 63 A 88 C

14 D 39 A 64 C 89 A

15 B 40 C 65 B 90 C

16 D 41 D 66 A 91 D

17 A 42 C 67 B 92 B

18 ·c 43 C 68 D 93 B

19 A 44 A 69 B 94 C

20 B 45 A 70 A 95 D

21 A 46 A 71 B 96 A

22 C 47 B 72 B 97 B

23 A 48 C 73 D 98 A

24 C 49 D 74 C 99 A

25 B 50 B 75 B 100 D