Address: 4th floor, 170 Bach Mai street, Hai Ba

Trung District, Ha Noi, Viet Nam

Tel: 0243223789
Website: kle.edu.vn

AUDIT RECRUITMENT PRACTICE TEST

ACCOUNTING (15 questions)

1. Under the accrual basis of accounting, revenues are reported in the accounting period when

A. Cash is received
B. Service or goods have been delivered
C. Service or goods have been delivered and invoice has been received by the buyer

2. Assets are usually reported on the balance sheet at which amount?

A. Cost
B. Current market value
C. Expected selling price

3. Which type of financial statement elements is unearned revenue presented?

A. Asset
B. Liability
C. Stockholders' (Owner's) equity

4. Which principle/guideline requires a company to report its land on the balance sheet at the amount the
company paid to acquire the land, even if the land could be sold today at a significantly higher amount?

A. Historical cost
B. Matching
C. Prudence

5. A large company purchases a digital camera for $250 and expenses it immediately instead of recording it
as an asset and depreciating it over its useful life. This practice may be acceptable because of which
principle/guideline?

A. Cost
B. Matching
C. Materiality

6. The accounting cycle begins by recording _____________ in the form of journal entries.

A. Business transaction
B. Financial information
C. Corporate minutes
D. Business contracts

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Tel: 0243223789
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7. On January 1, 2008 an asset was acquired for $30,000. Its useful life was expected to be 10 years and the
salvage value is expected to be $0. After four years of use, the company realized the asset would be useful
for only three more years. (In other words, the total useful life of the asset will be seven years instead of
the original 10 years.) The company uses the straight-line method of depreciation. The depreciation
expense in each of the years 2012, 2013, and 2014 will be:

A. 6,000
B. 5,000
C. 7,000
D. 9,000

8. Which item among the following is not an intangible asset?

A. A trademark
B. Research expenditure
C. A patent
D. A software

9. In a statement of cash flows, the acquisition of land by issuing capital stock:

A. Is not shown at all, since no cash was received or disbursed.

B. Is shown as an investing activity.
C. Is shown as a financing activity.
D. Is shown in a supplementary schedule as a non-cash investing and financing transaction.

10. External users of financial information include all of the following except:

A. Shareholders
B. Customers
C. Managers
D. Suppliers

11. Given following information:

Beginning inventory 10 units @ $10 per unit

First purchase 35 units @ $11 per unit
Second purchase 40 units @ $12 per unit
Third purchase 15 units @ $13 per unit

If 83 units are sold, the value of the ending inventory under periodic FIFO would be

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 Address: 4th floor, 170 Bach Mai street, Hai Ba
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A. $177
B. $219
C. $204

12. The production costs to produce one unit of finished goods was $45. Direct materials were 1/3 of the total
cost, and direct labour was 40% of the combined total of direct labour and direct materials. The cost for
direct materials, direct labour, and factory overhead was:

A. $15, $18, and $12, respectively

B. $15, $12, and $18, respectively
C. $15, $16, and $14, respectively
D. $15, $10, and $20, respectively

13. A Company purchased a machine for $10,400. The useful life was 10 year and a salvage value was $400.
What would be the depreciation expenses for the second year using the declining balance method?

A. 1,000
B. 1,406
C. 1,875
D. 2,500

14. Beginning balance of account receivables was $45,000, ending balance was $48,000, sale during the year
was $430,000. What was the amount shown in statement of cash flow using indirect method relating to
account receivables (assuming no other receivables):

A. $3,000 – cash in
B. $3,000 – cash out
C. $427,000 – cash in
D. $433,000 – cash in

15. A company prepares its financial statements to 31 December each year. It pays a rental costs on an office
building annually in advance. It paid rental costs of $600,000 on 31 May Year 1 and 660,000 on 31 May
Year 2

What is the expense for office rental for the year to 31 December Year 2?

A. 625,000
B. 630,000
C. 635,000
D. 660,000

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 Address: 4th floor, 170 Bach Mai street, Hai Ba
Trung District, Ha Noi, Viet Nam
Tel: 0243223789
Website: kle.edu.vn

TAX (10 questions)

1. Ordinary CIT rate from 1 January 2018 is:

A. 20%
B. 22%
C. 25%
D. 28%

2. Self-deduction for PIT purpose is:

A. VND 4,000,000 per month, VND 48,000,000 per year

B. VND 5,000,000 per month, VND 60,000,000 per year
C. VND 9,000,000 per month, VND 108,000,000 per year
D. The answers A,B,C are wrong.

3. Limitation for uniform allowance under current Corporate Income Tax regulation is:

A. VND 1,000,000
B. VND 1,500,000
C. VND 5,000,000
D. No limitation

4. If the VAT invoice is equal or greater than VND 20,000,000 (inclusive VAT) without document of non-
cash payment, the expense is non-deductible for CIT purpose.

A. True
B. Fasle

5. VAT of fixed assets which used for taxable output and non-taxable output is deductible.

A. True
B. False

6. Deductible VAT at the ending of the current year will be refunded to the entity A which has been
established 10 years ago if:

A. Accumulated deductible VAT within 12 months

B. Accumulated deductible VAT within 3 months
C. None

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7. Interest income from deposit at bank is not subject of PIT. True or False?

A. True
B. False

8. How many levels are there in the progressive tax table for PIT purpose?

A. 5 levels
B. 6 levels
C. 7 levels
D. 8 levels

9. The Company Y borrows money from employees and pays interest with rate 10% p.a. When the Company
paid interest, the Company has deducted 5% per total of interest income which should be paid to
employees. Then the company declared these amounts and paid PIT to State Budget. Is this true or false?

A. True
B. False

10. In accordance with the corporate income tax law that is currently enacted, what is the tax rate imposed on
the income from the sales of a building?

A. 20%
B. 22%
C. 25%
D. 28%

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 Address: 4th floor, 170 Bach Mai street, Hai Ba
Trung District, Ha Noi, Viet Nam
Tel: 0243223789
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AUDITING (10 questions)

1. Which of the following statement is the definition of assertions?

A. Assertions are representations by management, explicit or otherwise, that are embodied in the financial
statements, as used by the auditor to consider the different types of potential misstatements that may
occur.
B. Assertions are valuations, accuracy, right and obligation, presentation and disclosure, completeness and
occurrence/existence.
C. Assertions are all amounts and disclosures that the financial statements contain.
D. Assertions are amounts and disclosures that are explicitly embodied in the financial statements.

2. As the materiality is set on the basis of financial statements’ users, therefore, the materiality level
calculated at the planning stage should be unchanged throughout execution and completion stage of the
audit. Is this statement true or false?

A. True
B. False

3. In which of the following audit situations should an auditor maintain professional skepticism:

(1) When reviewing the results of a trade receivables confirmation

(2) When considering verbal presentations made by the director of the Company
(3) When considering written representations made by the directors of the directors of the company
(4) When checking a bank reconciliation prepared by the cashier of the company

A. (1) and (4) only

B. (2) and (3) only
C. (2) and (3) and (4) only
D. (1), (2), (3) and (4)

4. Which of the following is not the fundamental principal of codes of ethics?

A. Integrity 5 principles: integrity, objectivity, Professional Competence and Due Care,Confidentiality, Professional
Behavior
B. Objective
C. Independence
D. Confidentiality

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Trung District, Ha Noi, Viet Nam
Tel: 0243223789
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5. Which of the following factors should have the effect of INCREASING a sample size for a test of details?

(a) A decrease in the use of other substantive procedures directed at the same assertion
(b) A decrease in the amount of misstatement the auditor expects to find the population
(c) An increase in the level of tolerable misstatement

A. (a) only
B. (b) only
C. (b) and (c)
D. (c) only

6. Which of the following assertions should an auditor NOT use when checking “account balances at the
period end” in a set of financial statements?

A. Valuation
B. Existence
C. Cut-off
D. Completeness

7. The PRIMARY purpose of an auditor evaluating and testing the internal controls of a limited liability
company is to enable the auditor to advise management of the deficiencies in the internal controls.

Is this statement true or false?

A. True
B. False

8. Audit risk represents the risk that the auditor will give an inappropriate opinion on the financial statements
when the financial statements are materially misstated. Which of the following categories of risk can be
controlled by the auditors?

Category of risk:

(1) Control risk

(2) Detection risk
(3) Sampling risk

A. (1) and (2)

B. (2) only
C. (1) and (3)
D. (2) and (3)

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9. Which of the following types of internal controls does a small limited liability company normally have
particular difficulty in implementing satisfactorily?

(a) Segregation of duties

(b) Performance reviews
(c) Information processing

A. (a) only
B. (b) only
C. (c) only
D. (a), (b) and (c)

10. During the attendance at the physical inventory counting, auditor selected 15 inventory items per the stock
listing to perform the re-count. Which assertion dose the procedures cover?

A. Completeness
B. Existence
C. Presentation
D. Valuation

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 Address: 4th floor, 170 Bach Mai street, Hai Ba
Trung District, Ha Noi, Viet Nam
Tel: 0243223789
Website: kle.edu.vn

IQ (15 questions)

20

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 Address: 4th floor, 170 Bach Mai street, Hai Ba
Trung District, Ha Noi, Viet Nam
Tel: 0243223789
Website: kle.edu.vn

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 Address: 4th floor, 170 Bach Mai street, Hai Ba
Trung District, Ha Noi, Viet Nam
Tel: 0243223789
Website: kle.edu.vn

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 Address: 4th floor, 170 Bach Mai street, Hai Ba
Trung District, Ha Noi, Viet Nam
Tel: 0243223789
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10.

888 890

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 Address: 4th floor, 170 Bach Mai street, Hai Ba
Trung District, Ha Noi, Viet Nam
Tel: 0243223789
Website: kle.edu.vn

ESSAY

Universities should accept equal numbers of male and female students in every subject. To what extent do
you agree or disagree? (200 words)

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