VERIFIED AAA – Mid-Semester Test – S1 2026 - KnowledgEquity.

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Quiz Name

AAA M2 - MINI QUIZ - ASSERTIONS




AAA - MID-SEMESTER TEST - S1 2026




AAA Mid-Semester Test – S1 2026




Question Marks:


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Quiz Name
Which of the following best describes the above scenario?




Answer Options
You answered C. The correct answer is C
USER SELECTION CORRECT ANSWER



A Test of detail


B Test of control


C Internal control


D Analytical procedure




Answer Explanation
C is correct because this is a control that is in place within the entity. The auditor has not tested it in any way and so it is not a test of control.

Module: controls > Components of internal control > Page: 117-119




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Quiz Name
Choc Ltd sells chocolates in bulk to retailers. In 20X5, Choc Ltdʼs days in debtors was 40.7 days while its days in inventory was 11.2 days. The foll
accounts receivable balance in 20X5 was the same as in 20X6):

Profit and Loss Statement (extract)
Sales revenue
Expenses
COGS
Operating expenses
Depreciation and amortisation expense
Net profit before tax
Balance sheet (extract)
Inventory
Accounts receivable
Accounts payable

As an auditor performing risk assessment procedures, what would be your concern regarding inventory?




Answer Options
You answered C. The correct answer is B
USER SELECTION CORRECT ANSWER



A Rights assertion as a result of the decrease in inventory period.


B Valuation assertion as a result of the increase in inventory period.




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