Question
Read the given statements and conclusions carefully.
Assuming that the information given in the statements is true, even if it appears to be at variance with commonly known facts, decide which of the given conclusions logically follow(s) from the statements. Statement: All Hill are Valley. All Valley are Mountain. Some Hill are River. Conclusions: I. Some Valley are River. II. Some Mountain are not Hills. III. All Mountain are River.Solution
Some Hill are River (I) → Conversion → Some River are Hill (I) + All Hill are Valley (A) → Some River are Valley (I) → Conversion →  Some Valley are River (I). Hence conclusion I follows. All Hill are Valley (A) + All Valley are Mountain (A) → All Hill are Mountain (A). Hence conclusion II does not follow. All Hill are Mountain (A) → Conversion → Some Mountain are Hill (I) + Some Hill are River (I) → No conclusion. Hence conclusion III does not follow.
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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