The 'Data Analytics' in audit is used to: MCQ with Answer and Explanation

Question Report Error

The 'Data Analytics' in audit is used to:

A. Replace auditors

B. Prepare tax returns

C. Analyse large volumes of data to identify anomalies and patterns

D. Set audit fees

Answer: Option C

Solution (By JKExamLibrary)

Data analytics enhances audit quality by enabling deeper insights.

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

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Question #1 Report Error

Identify the non-cash item from the following:

A. Purchase of machinery

B. Dividend paid

C. Wages paid

D. Depreciation

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Correct Answer: Option D

Explanation:
Depreciation is the systematic allocation of asset cost; it does not involve any actual outflow of cash.

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

Question #2 Report Error

Which financial statement shows the net profit or loss for an accounting period?

A. Statement of Profit & Loss

B. Balance Sheet

C. Cash Flow Statement

D. Trial Balance

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Correct Answer: Option A

Explanation:
The Statement of Profit & Loss (Profit & Loss Account) calculates the net result of operations.

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

Question #3 Report Error

The 'Accrual Concept' is also known as:

A. Cash system

B. Hybrid system

C. Single entry

D. Mercantile system

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Correct Answer: Option D

Explanation:
Accrual basis is also called mercantile basis, where transactions are recorded when they occur, not when cash is paid/received.

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

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