Page 27 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs

330.4 SM21
Because the assessment of the risk of material misstatement takes account of internal control,
a) the extent of substantive procedures may need to be increased irrespective of the results from
tests of controls.
b) the extent of substantive procedures may need to be increased when the results from tests of
controls are satisfactory.
c) the extent of substantive procedures may need to be decreased when the results from tests of
controls are unsatisfactory.
d) the extent of substantive procedures may need to be increased when the results from tests of
controls are unsatisfactory.

330.5 SM21
Controls can be related to an assertion.
a) directly
b) indirectly
c) directly or indirectly
d) no relationship between controls and assertion.

330.6 M22M
In designing and performing test of controls, the auditor shall perform other audit procedures in
combination with inquiry to obtain audit evidence about the operating effectiveness of the controls,
including:
(i) How the controls were applied at relevant times during the period under audit.
(ii) The consistency with which they were applied.
(iii) By whom or by what means they were applied.
Which of the following is correct?
a) (i) and (ii)
b) (ii) and (iii)
c) (i), (ii) and (iii)
d) (i) and (iii)

Part 5 - AUDIT IN AN AUTOMATED ENVIRONMENT

AAE.1 #Unique SM21
Who is mainly responsible for implementation of internal financial controls in a company?
a) Auditors
b) Directors
c) Employees
d) Regulators

AAE.2 SM21
Which of the following is a General IT control?

a) IT Environment
b) Application Control
c) Access Security
d) IT Dependent Control

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