Page 58 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs

560.2 SM23
Which of the following is not an example of subsequent event?
a) Event occurring between date of financial statements and date of auditor’s report.
b) Event occurring on date of financial statements.
c) Event occurring after filing audit report with tax authorities. Had such an event been known
earlier, auditor would have amended report.
d) Event occurring during course of performing audit procedures after date of financial statements.

Part 05-SA 570

570.2 N21M/M22M
Which of the following is not an example of an event or condition that may cast significant doubt

on entity’s ability to continue as a going concern:
a) Loss of key management without replacement
b) Adverse key financial ratios
c) Inability to pay creditors on due date
d) Current year profit turns to loss after providing depreciation

570.3 N22R
A company is engaged in business of obtaining eggs from one day old chicks. Which of the following
is NOT an example of an event or condition that may cast significant doubt on the ability of the
company to continue as a going concern?
a) Mortality of 90% of livestock of the company
b) Decision by govt to ban commercial rearing of birds amidst protests by activists or preventing
cruelty to animals
c) Shifting of farm labour to respective villages due to MGNREGA scheme of Govt causing acute
scarcity throughout the year
d) Increase in cost of feed of chicks by 20% during the year

570.4 N23M
Following are examples of events or conditions that may cast significant doubt on an entity’s ability

to continue as a going concern. Which of following is an example of operating event/conditions?
a) Adverse key financial ratios
b) Inability to pay creditors on due dates
c) Indications of withdrawal of financial support by creditors
d) Shortages of important supplies

570.5 SM23
Which of the following is not an example of events or conditions that may cast significant doubt on

the entity’s ability to continue as a going concern?
a) Adverse key financial ratios
b) Inability to invest in modernization of plant
c) Inability to pay creditors on time
d) Inability to pay salary of staff

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