Page 139 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs
The counting of finished wooden doors was necessary for the purpose of verification of stock of finished
wooden doors.

(2) In WT Limited the stock of finished wooden doors was valued manually by multiplying number of
finished wooden doors with value per finished wooden door. A team member of CA H again did the
calculation in order to verify the accuracy regarding valuation of stock of wooden finished doors.

(3) CA H with the help of his team members obtained information from people (who were experienced
in manufacturing business of wooden doors) about the purchase price of raw materials required in
manufacturing business of wooden doors and also obtained some non-financial information.

(4) CA H and his team members while conducting the audit of WT Limited for financial year 2019-20 in
detail checked and evaluated the books of accounts and relevant documents of W Limited.

(5) CA H asked for written confirmations regarding account balances from Debtors and Creditors of WT
Limited.

Keeping the basic concepts about various audit procedures in mind, answer the following multiple -
choice questions:
I. “CA H and his team members carefully watched the whole process of counting of finished wooden
doors by employees of WT Limited. This is an example of which audit procedure:

(a). External Confirmation.
(b). Observation.
(c). Inquiry.
(d). Inspection.
II. “In order to verify the accuracy regarding valuation of stock of wooden finished doors, a team
member of CA H again did the calculation. This is an example of which audit procedure:
(a). Analytical Procedures.
(b). Inquiry.
(c). Inspection.
(d). Recalculation.

III. “CA H with the help of his team members obtained information (both financial and non-financial
information) from experienced people in manufacturing business of wooden doors. These
experienced people provided the required information. This whole method of obtaining
information is an example of which audit procedure:
(a). Inspection
(b). Reperformance.
(c). Inquiry.
(d). Investigation.
IV. “CA H and his team members in detail checked and evaluated the books of accounts and relevant
documents of WT Limited. This is an example of which audit procedure:
(a). Inspection.
(b). Reperformance.
(c). Recalculation.
(d). Investigation
V. “Asking for written confirmations regarding account balances from Debtors and Creditors of WT
Limited by CA H is an example of which audit procedure:

(a). Inquiry
(b). Inspection
(c). Investigation.
(d). External Confirmation.

www.auditguru.in 133 | P a g e