Page 11 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs

c) Over generalising when drawing conclusions from audit observations.
d) Being vigilant to conditions that might indicate possibilities of fraud.

Part 5-Other Concepts

CIA.1 SM21
______ along with other disciplines such as accounting and law, equips you with all the knowledge

that is required to enter into auditing as a profession.
a) Auditing
b) Taxation
c) Finance
d) Taxation and Finance both

CIA.2 M19M/N23R
______are self-evident and occur when auditors form relationships with the client where they end

up being too sympathetic to the client’s interests.
a) Familiarity threats
b) Self-interest threats
c) Advocacy threats
d) Intimidation threats

CIA.4 #Unique SM21
No business or institution can effectively carry on its activities without the help of proper ______

a) Audit
b) Records and accounts
c) neither (a) nor (b)
d) both (a) and (b)

CIA.6 M20M
Direct financial interest or materially significant indirect financial interest in a client is an example

of
a) Self-review threats
b) Self-interest threats
c) Advocacy threats
d) Intimidation threats

CIA.9 #Unique SM21
The type of errors, existence of which becomes apparent in the process of compilation of accounts
is known as:

a) Self-revealing errors.
b) Intentional errors
c) Concealed errors
d) Unconcealed errors.

CIA.10 #Unique SM21

When credit purchases of ` 5,100 is recorded on credit side and credit sales of ` 5,100 is recorded on
debit side, this kind of error is called__________.

a) Error of omission

b) Compensating error

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