The 'Professional Skepticism' means: MCQ with Answer and Explanation

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The 'Professional Skepticism' means:

A. Being cynical always

B. Ignoring evidence

C. Questioning mind and critical assessment of audit evidence

D. Believing management without question

Answer: Option C

Solution (By JKExamLibrary)

Auditor must apply professional skepticism throughout the engagement.

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

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Question #1 Report Error

The 'Insolvency and Bankruptcy Code' (IBC) 2016 provides:

A. For winding up of companies only

B. Tax collection

C. Time-bound resolution of insolvency and bankruptcy

D. Audit procedures

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Correct Answer: Option C

Explanation:
IBC aims at resolution in a time-bound manner, maximising asset value.

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

Question #2 Report Error

The 'Baggage Rules' under Customs provide for:

A. Duty on all luggage

B. Duty on cargo

C. Duty-free allowances for passengers arriving in India

D. No allowance

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Correct Answer: Option C

Explanation:
Baggage Rules specify the quantity and value of goods that can be brought duty-free.

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

Question #3 Report Error

Cost Accounting defines 'Cost Centre' as:

A. A unit of product ready for sale

B. A person, location, or item of equipment for which costs may be ascertained for control

C. The bank account where funds are kept

D. The total profit of the organization

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Correct Answer: Option B

Explanation:
A cost centre is a logical segment (like a department or machine) used to accumulate and trace costs for management purposes.

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

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