Page 38 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs

520.4 N19R
Which of the following statement is correct:
a) Substantive analytical procedures are generally more applicable to large volumes of
transactions that tend to be predictable over time
b) Substantive analytical procedures are generally less applicable to large volumes of transactions
that tend to be predictable over time
c) Substantive analytical procedures are generally more applicable to small volumes of
transactions that tend to be predictable over time
d) None of the above

520.5 SM21
The basic assumption underlying the use of analytical procedures is:
a) It helps he auditor to study relationship among elements of financial information
b) Relationship among data exist and continue in the absence of known condition to the contrary
c) Analytical procedures will not be able to detect unusual relationships
d) None of the above

520.6 SM21
What are analytical procedures?
a) Substantive tests designed to assess control risk
b) Substantive tests designed to evaluate the validity of management’s representation letter
c) Substantive tests designed to study relationships between financial and non-financial data
d) All of the above

520.7 SM21
What is the primary objective of analytical procedures used in the overall review stage of an audit?

a) To help to corroborate the conclusions drawn from individual components of financial
statements
b) To reduce specific detection risk
c) To direct attention to potential risk areas
d) To satisfy doubts when questions arise about a client’s ability to continue

520.8 N19M
Which of the following is correct:
a) Different types of analytical procedures provide different levels of assurance.
b) Different types of analytical procedures provide similar levels of assurance.
c) Similar type of analytical procedures provide different levels of assurance.
d) All are correct

520.9 M19M
Which of the following is correct:

a) As per the Standard on Auditing (SA) 520 “Analytical Procedure” ‘the term “analytical
procedures” means evaluations of financial information through analysis of financial data.
b) As per the Standard on Auditing (SA) 520 “Analytical Procedure” ‘the term “analytical
procedures” means evaluations of financial information through analysis of non-financial data.
c) As per the Standard on Auditing (SA) 520 “Analytical Procedure” ‘the term “analytical
procedures” means evaluations of financial information through analysis of plausible
relationships among both financial and non-financial data.

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