KPMG- Entrance-TEST- ACE THE Future PDF

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KPMG ENTRANCE INTERN TESTI. MULTIPLE CHOICE QUESTIONQuestion 1 : If there is a debit balance of $1,250 on X’s account in the books of Y, what does it mean?A. X owes $1,250 to Y B. Y owes $1,250 to X C. X has returned goods worth $1,250 to Y D. X is owed $1,250 by Y.Question 2: Which is not included ...

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ACE THE FUTURE ENGLISH

KPMG TEST

KPMG ENTRANCE INTERN TEST I.

MULTIPLE CHOICE QUESTION

Question 1: If there is a debit balance of $1,250 on X’s account in the books of Y, what does it mean? A. B. C. D.

X owes $1,250 to Y Y owes $1,250 to X X has returned goods worth $1,250 to Y X is owed $1,250 by Y.

Question 2: Which is not included in Audit Risk Equation? A. B. C. D.

Inherent Risk Control Risk Business Risk Detection Risk

Question 3: What is the level of assurance and type of opinion that can be provided on review engagement?

A. B. C. D.

Level of assurance

Report wording

Reasonable Reasonable Limited Limited

Positive Negative Positive Negative

Question 4: While reviewing purchases cycle, you identified that goods received notes for raw materials purchases are not sequentially numbered. Which of the following areas would you consider to be most at risk of material misstatement, as a result of this internal control deficiency? A. B. C. D.

Rights and obligations of inventory Valuation of payables Existence of inventory Completeness of payables

Question 5: Which of the following statements best reflects the auditors ‘s duty of confidentiality? A. Auditors must never, under any circumstances, disclose any matters of which they become aware during the course of the audit to third parties, without the permission of the client. B. Auditors may disclose any matters in relation to criminal activities to the police or taxation authorities, if requested to do so by the police or a tax inspector. C. Auditors may disclose matters to third parties without their client’s consent if it is in the public interest, and they must do so if there is a statutory duty to do so. D. Auditors may only disclose matters to third parties without their client’s consent if the public interest or national security is involved.

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KPMG TEST

Question 6: Which of the following is not a component of an entity’s internal control? A. B. C. D.

The control environment Control activities relevant to the audit The selection and application of accounting policies The information system relevant to financial reporting.

Question 7: Which one of the following journal entries is required to record goods taken from inventory by the owner of a business? A. B. C. D.

Debit Drawings, Credit Purchases Debit Sales, Credit Drawings Debit Drawings, Credit Inventory Debit Purchases, Credit Drawings

Question 8: Which of the following assertions are relevant to the audit of tangible non-current assets? 1. 2. 3. 4.

Existence Occurrence Classification Presentation

A. B. C. D.

1 only 1, 3 and 4 2, 3 and 4 1, 2, 3 and 4

Question 9: You are working as a graduate trainee in a large bank. Whilst undertaking your placement with the customer service team, you take a call from an upset client. He is claiming that he was expecting a refund on some banking fees he was wrongly charged for but he was not received them. He explains that a colleague of yours promised the refund would be in his account today but the money has not arrived yet. He is getting more upset and is raising his voice to you. What would you say to him to give the best result? A. I will do all I can to help you with this issue. If you give me your account details I will investigate what has happened here. B. Let me check with the colleague you mentioned about what the situation is. If you can hold for a couple of minutes I will speak to them and will be back with you in no time. C. Sir, I can hear that you are really upset but I need you to calm down so that I can help you. D. I am sure there is a logical explanation for this. If you give me details I will look into it for you.

Question 10: You recently submitted a paper to an upcoming professional conference that will be attended by many people from your industry and from universities globally. You have attended the conference in the past and it is very well attended and highly regarded in the industry. The paper is a summary of some very complex research you have been undertaking with some key findings that you believe people will find very interesting and useful. Upon

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KPMG TEST

learning that it has been accepted, your manager asks you to think about how you will present your findings in order to make the biggest impact. You only have a short time slot for your presentation. How would you respond? A. Say that you intend to use a lot of graphics and images to try and draw out a handful of key messages. B. Say that you intend to create a presentation that mirrors the wider research paper that you wrote with similar section headers. C. Ask your manager what they think would be the best approach to use based on their experience D. Say that you will spend a small amount of time introducing your approach to the research but will mainly discuss your key findings and conclusions. Question 11: Mary had a number of cookies. After eating one, she gave half the remainder to her sister. After eating another cookie, she gave half of what was left to her brother. Mary now had only five cookies left. How many cookies did she start with? A. B. C. D.

11 23 22 45

Question 12: The following bank reconciliation statement has been prepared for a company: Overdraft per bank statement

$39,800

Add: Deposits credited after date

$64,100

Less: Unpresented cheques presented after date

$44,200

Assuming the amount of the overdraft per the bank statement of $39,800 is correct, what should be the balance in the cash book? A. B. C. D.

$158,100 overdrawn $19,900 overdrawn $68,500 overdrawn $59,700 overdrawn

Question 13: 24, 30, ?, 60, 84, 114 What number should replace the question mark? A. B. C. D.

42 45 36 40

Question 14: Which of the following costs should be included in valuing inventories of finished goods held be a manufacturing company, according to IAS 2 Inventories?

ACE THE FUTURE ENGLISH 1. 2. 3. 4. A. B. C. D.

KPMG TEST

Carriage inwards Carriage outwards Depreciation of factory plant Accounts department cost relating to wages for production employees. All four items 2 and 3 only 1, 3 and 4 only 1 and 4 only

Question 15: Prisha has not kept accurate accounting records during the financial year. She had opening inventories $6,700 and purchases goods costing $84,000 during the year. At the year end she had $5,400 left inventories. All sales are made at a mark up on cost of 20%. What is Prisha’s gross profit for the year? A. B. C. D.

$13,750 $17,060 $16,540 $20,675

Question 16:

1 2 4 2 3 6 12 18 1 10 28 58 1 13 51 ? What number should replace the question mark? A. B. C. D.

80 109 129 137

Question 17: If the current ratio for a company is equal to its quick ratio, which of the following statement is true? A. B. C. D.

The current ratio must be greater than one The company does not carry any inventories Receivables plus cash is greater than payables minus inventories Working capital is positive

Question 18: Which number is the odd one out? 84129, 32418, 47632, 36119, 67626, 72927 A. B. C. D. E. F.

84129 32418 47632 36119 67626 72927

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Question 19: Which body is responsible for issuing International Financial Reporting Standard (IFRS)? A. B. C. D.

IFRS Interpretations Committee IFRS Advisory Council International Accounting Standard Board The United Nations

Question 20: The annual sales of a company are $235,000 including sales tax at 17.5%. Half of the sales are on credit terms, half are cash sales. The receivables in the statement of financial position are $23,500. What is the output tax? A. B. C. D.

II.

$17,500 $20,562.5 $35,000 $41,125

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