Page 131 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs
(a). Completeness
(b). Valuation
(c). Rights and obligations
(d). Existence
III. "Relating and tallying information obtained from audit evidence internally and externally is an
example of ________ evidence as observed in the above case. #Unique
(a). Corroborative
(b). Supplementary
(c). Contrasting
(d). Contradictory

Author’s Note: ICAI has given option “d” as answer but correct answer is option “a”.

IV. "Which assertion would Vyom find to be common among Income Statement and Balance Sheet.
(a). Existence
(b). Valuation
(c). Completeness
(d). Measurement
V. "Sufficiency of the Audit Evidence collected as per the above case is referred to by CA Kumar
as_____ of Audit Evidence?
(a). Quality
(b). Quantum
(c). Source
(d). Form

45 (M21R)
Suresh Rana & Associates have been appointed as the statutory auditors of HAIL Ltd. by the Comptroller
& Auditor General for the FY 2019-20. HAIL Ltd. is a Government company engaged in the manufacture
of metro train coaches. During the course of audit, CA Suresh extended his scope of audit to cover
efficiency, effectiveness and economy audit. CA Suresh Rana also asked his audit team to conduct
expenditure audit as part of the audit engagement of HAIL Ltd.
During the course of audit, CA Suresh also found that the company has constructed its new stockyard
for parking its metro coaches and maintenance of its metro coaches. However, the stockyard was not
being used by the company for the designated purpose and the company continued using the rented
stockyard. Suresh considered such expenditure as infructuous and avoidable expenditure.
The engagement partner also discussed with his team regarding the areas to be covered while
conducting the audit of receipts. The reporting responsibilities of the engagement te am were also
discussed by the engagement partner with his team.
Based on the above facts, answer the following:-
I. Statement 1: Government audit provides public accounting of operational, management
programme and policy aspects of public administration as well as accountability of officials
administering them.
Statement 2: Government audit is equipped and intended to function as an investigating agency,
to pursue every irregularity or misdemeanour to its logical end.
(a). Only statement 1 is correct
(b). Only statement 2 is correct
(c). Both 1 & 2 are correct
(d). Both 1 & 2 are incorrect
II. “………….. is conducted to ensure that the various programmes, schemes, and projects where large
financial expenditure have been incurred are run economically and are yielding results expected
of them:-

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