Page 40 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs

520.15 SM21
Substantive Analytical Procedures are generally more applicable to:
a) Large volumes of transactions.
b) Transactions predictable over time.
c) Both a and b
d) None of a and b

520.16 SM21
When significant risk had been identified by the auditor, then:

a) Audit evidence obtained solely from substantive analytical procedures is sufficient.
b) Audit evidence obtained solely from substantive analytical procedures is unlikely to be
sufficient.

c) Auditor will perform test of details also.
d) Both b and c

520.17 M22M
_____________ implies analysing account fluctuations by comparing current year to prior year
information and, also, to information derived over several years.

a) Trend analysis
b) Ratio analysis

c) Structural modelling
d) Account fluctuations analysis

520.18 N22M
The auditor of Vishwas Ltd wants to know from you which of the following methods are analytical
procedures
I. Comparison of client and industry data
II. Comparison of client data with similar prior period data
III. Comparison of client data with client-determined expected results
IV. Comparison of client data with auditor-determined expected results

a) I, II and III only
b) I &, II only
c) III &, IV only
d) I, II, III and IV

Part 06-SA 530

530.1 SM21

Which of the following is source of Non Sampling risk:
a) Human Mistakes
b) Applying audit procedures not appropriate to the objectives of audit
c) Misinterpreting the sample results
d) All of the above

530.3 M19M
It is a type of value-weighted selection in which sample size, selection and evaluation results in a

conclusion in monetary amounts:
a) Haphazard sampling
b) Monetary Unit Sampling
c) Stratified Sampling
d) Interval sampling
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