Page 26 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs

320.5 M21R/N22M
The concept of materiality is applied by the auditor :
a) in planning and performing the audit

b) in evaluating the effect of identified misstatements on the audit
c) both in planning and performing the audit, and in evaluating the effect of identified
misstatements on the audit
d) none of the above is correct

320.6 SM23
Which of the following is true regarding materiality?
a) It is unaffected by nature of an item.
b) It is unaffected by requirements of law or regulations.
c) It is not a matter of professional judgment.
d) It is not always a matter of relative size.

Part 4 - SA 330

330.1 N19R/SM21
When deviations from controls upon which the auditor intends to rely are detected,
a) the auditor shall not make any inquiries to understand these matters and their potential
consequences
b) the auditor shall make specific inquiries to understand these matters and their potential
consequences
c) the auditor shall make general inquiries to understand these matters and their potential
consequences
d) the auditor shall make both general as well as specific inquiries to understand these matters
and their potential consequences

330.2 N19R

When more persuasive audit evidence is needed regarding the effectiveness of a control,
a) it may be appropriate to increase the extent of testing of the control and reduce the extent of
the degree of reliance on controls.
b) it may be appropriate to decrease the extent of testing of the control as well as the degree of
reliance on controls.
c) it may be appropriate to decrease the extent of testing of the control and increase the extent
of the degree of reliance on controls.
d) it may be appropriate to increase the extent of testing of the control as well as the degree of
reliance on controls.

330.3 M20R
Statement 1: Audit procedures consist of Risk Assessments Procedures and other procedures.

Statement 2: Substantive procedures consist of test of details and analytical procedures.
a) Only Statement 1 is correct
b) Only Statement 2 is correct
c) Both 1 & 2 are correct
d) Both 1 & 2 are incorrect

www.auditguru.in 20 | P a g e