Page 57 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs

CHAPTER 7 COMPLETION & REVIEW

Part 1 - SA 260 -- New Addition

260.1 N23R/N23M
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

260.2 SM23
An auditor of a company communicates significant findings from audit with those charged with

governance in the company. Which of the statements is false in regard to communication made?
a) Evaluation of adequacy of communication process is required on part of the auditor.
b) Planned scope and timing of audit has also to be communicated.
c) Communication of rationale behind audit procedures is necessary.
d) Significant difficulties encountered during audit, if any, have to be communicated.

Part 2 - SA 265-- New Addition

No Individual MCQ

Part 3 - SA 450-- New Addition

450.1 SM23
Which of the following is false regarding communication of misstatements identified during course

of an audit?
a) The auditor should request those charged with governance for correction of identified
misstatements.
b) The auditor should obtain written representation acknowledging management belief that
effect of uncorrected misstatements is material.
c) The auditor should obtain written representation acknowledging management belief that the
effect of uncorrected misstatements is immaterial.
d) The auditor should communicate effect of uncorrected misstatements related to prior periods
on the relevant classes of transactions, account balances or disclosures, and the financial
statements as a whole.

Part 4 - SA 560

560.1 M19M/SM21/M23M

The auditor has no obligation to perform any audit procedures regarding the financial statements
after the date of the auditor’s report. However, when, after the date of the auditor’s report but
before the date the financial statements are issued, a fact becomes known to the auditor that, had
it been known to the auditor at the date of the auditor’s report, may have caused the auditor to
amend the auditor’s report, the auditor shall:
a) Discuss the matter with management and, where appropriate, those charged with governance.
b) Determine whether the financial statements need amendment.
c) Inquire how management intends to address the matter in the financial statements.
d) All of the above

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