Page 34 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs

d) Responses to inquiries may provide the auditor with information not previously possessed or
with corroborative audit evidence.

500.11 SM21
Auditor’s judgment as to sufficiency may be affected by the factors such as:

a) Materiality
b) Risk of material misstatement
c) Size and characteristics of the population.
d) All of the above

500.12 M21R/M21M/N21R
The persons with responsibility for overseeing the strategic direction of the entity and obligations

related to the accountability of the entity are :
a) management
b) Those charged with governance –
c) audit committee
d) board of directors

500.13 N21R/N22M
Mr. H and his team members carefully watched the whole process of counting of finished wooden

doors by employees of Bottom Limited. This is an example of which audit procedure:
a) External Confirmation.
b) Observation.
c) Inquiry.
d) Inspection.

500.14 M22R
_______refer to the audit procedures performed to obtain an understanding of the entity and its
environment, including the entity’s internal control, to identify and assess the risks of material
misstatement, whether due to fraud or error, at the financial statement and assertion levels.
a) Internal control assessment procedures
b) Risk assessment procedures
c) substantive procedures
d) analytical procedures

500.15 N22M
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

500.16 N22M
CA X, auditor of Green Shoots Private Ltd. is going through financial statements of the company. On
perusing notes to accounts, he finds ageing of trade payables reflecting in accordance with
requirements of Schedule III of Companies Act, 2013. He wants to be sure that ageing of trade
payables forming part of notes of accounts is proper and carries out ageing independently to
confirm its veracity. Identify audit procedure(s) being performed by CA X.
a) Analytical procedures

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