Page 10 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs

200.17 SM21/M22M
Which of the following is the responsibility of the auditor:
a) Preparation and presentation of the financial statements in accordance with applicable

financial reporting
b) Design, implementation, and maintenance of internal controls
c) Express an opinion on the Financial Statements
d) To obtain limited assurance.

200.18 N21M
The Firm R K & Associates has an extensive understanding of Code of Ethics that underlies the
fundamental principles relevant to the Auditor when conducting an Audit of Financial Statements
and provides a conceptual framework for applying these principles. Which of the following does not
form part of the fundamental principle?

a) Integrity
b) Professional Competence and due care
c) Professional Skepticism
d) Professional behaviour

200.19 N22R
An auditor signs a false audit report knowingly. Which of the following fundamental
principles of professional ethics is violated in such a case?

a) Objectivity
b) Integrity
c) Professional Competence and due care
d) Professional behaviour

200.20 M22M/N22M
Owing to the _______ limitations of an audit, there is _________ risk that some material
misstatements of the financial statements will not be detected, even though the audit is properly
planned and performed in accordance with the SAs.
a) Inherent, unavoidable
b) Inherit, complete
c) Management, unavoidable
d) Regulatory, control

200.21 M23M
With respect to auditing, which of the following statement is correct:
a) Audited financial statements are absolutely free from all material misstatement due to fraud
or error.
b) An audit is an official investigation into alleged wrongdoing and auditor has specific legal
powers to conduct investigation.
c) The auditor can obtain only a reasonable assurance about whether the financial statement as
a whole are free from material misstatement and report on it.
d) An auditor’s opinion is an assurance as the future viability of the enterprise or the efficiency or
effectiveness of the management.

200.22 SM23
Professional skepticism includes-
a) Overlooking unusual circumstances.
b) Using inappropriate assumptions in determining extent of audit procedures.
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