Question
A dishonest shopkeeper sold rice at 20% profit on the cost
price, but he uses a faulty weight that weighs 30% less than actual weight. Find the approx. actual profit or loss earned by him.Solution
Let the cost price of the item Rs. 100x
So, selling price of the item for Shopkeeper = 100x X 1.2 X (10/7) = Rs. (1200/7)
So, required profit percentage = {(1200x/7) - 100x}/100x = 71% profit
Which of the following is a primary objective of auditing?
An auditor's sample for test of controls is least likely to be designed to:
Which of the following is an example of an inherent limitation of an audit?
The risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated is known as:
Why must auditors obtain an understanding of internal control even if they do not intend to rely on it?
An audit conducted between two annual audits is known as a:
Which balance is least suited to positive confirmation?
Which auditing standard outlines the auditor's responsibilities relating to fraud in an audit of financial statements?
‘Goods sent on approval basis’ have been recorded as ‘Credit sales’. This is an example of:
Which of the following financial statements can be prepared using a receipt and payment account?
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