Page 25 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs

d) Processing of large volumes of data

ICS.9 SM23

Which of the following is not an objective of a company’s policies for ensuring “internal financial
controls”?

a) Efficient conduct of business
b) Safeguarding of assets
c) Prevention and detection of frauds and errors
d) Assessing audit risk

Part 3 - SA 320

320.1 M19M/SM21

Determining a percentage to be applied to a chosen benchmark (in relation to materiality) involves

the exercise of ___________
a) Independence
b) Professional Judgement
c) Professional skepticism
d) All of the above

320.2 M19M/M21M/SM21
SA 320 on “Materiality in Planning and Performing an Audit” requires that an auditor
a) should not consider materiality and its relationship with audit risk while conducting an audit.
b) should consider materiality and its relationship with audit risk while conducting an audit.
c) should not consider materiality but should consider its relationship with audit risk while
conducting an audit.
d) should consider materiality but need not consider its relationship with audit risk while
conducting an audit.

320.3 SM21
Which of the following is not an example of benchmarks in determining materiality for the Financial
Statements as whole:

a) Profit before tax
b) total revenue
c) audit programme
d) total equity

320.4 #Unique SM21
Which of the following is true:
a) The internal audit plan should be comprehensive enough to ensure that it helps in achieving of
the above overall objectives of an internal audit.
b) The internal audit plan should, generally be consistent with the goals and objectives of the

internal audit function as listed out in the internal audit charter as well as the goals and
objectives of the organisation.
c) In case the entire internal audit or the particular internal audit engagement has been
outsourced, the internal auditor should also ensure that the plan is consistent with the terms
of the engagement.
d) All the above

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