Page 65 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs

the auditor previously expressed, the auditor shall disclose the substantive reasons for the
different opinion in an emphasis of Matter paragraph in accordance with SA 706.
d) When reporting on prior period financial statements in connection with the current period’s
audit, if the auditor’s opinion on such prior period financial statements differs from the opinion
the auditor previously expressed, the auditor shall disclose the substantive reasons for the
different opinion in an Other Matter paragraph or emphasis of matter paragraph in accordance
with SA 706.

706.2 SM23
…………………… is a paragraph included in the auditor’s report that refers to a matter appropriately
presented or disclosed in the financial statements that, in the auditor’s judgement, is of such
importance that it is fundamental to the user’s understanding of the financial statements.
a) Emphasis of Matter Paragraph
b) Other Matter Paragraph
c) Key Audit Matter
d) Management Responsibility Paragraph.

Part 5 - SA 710
No MCQ’s in SA 710

Part 6 - Provisions of Companies Act

CA1.9 M19M
In case of a fraud involving less than Rs. 1 crore, the auditor shall

a) report the matter to the audit committee constituted under section 177 or to the Board in other
cases within such time and in such manner as prescribed.
b) report the matter to the audit committee constituted under section 177 within such time and
in such manner as prescribed.
c) report the matter to the Board within such time and in such manner as prescribed.
d) report the matter to the audit committee constituted under section 177 and also to the Board
within such time and in such manner as prescribed.

CA1.18 N19M
Which of the following is not a duty of auditor to report under section 143 (1)

a) whether loans and advances made by the company on the basis of security have been properly
secured and whether the terms on which they have been made are prejudicial to the interests
of the company or its members;
b) whether transactions of the company which are represented merely by book entries are
prejudicial to the interests of the company;
c) where the company not being an investment company or a banking company, whether so much
of the assets of the company as consist of shares, debentures and other securities have been
sold at a price less than that at which they were purchased by the company;
d) whether the report on the accounts of any branch office of the company audited under sub-
section (8) by a person other than the company’s auditors has been sent to him under the
proviso to that sub-section and the manner in which he has dealt with it in preparing his report;

CA 1.27 SM21
Reporting on fraud is made by auditor to Central Government in statement in the form

a) ADT – 1
b) ADT – 2

c) ADT – 3
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