Page 7 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs
CHAPTER 1 NATURE, OBJECTIVE AND SCOPE OF AUDIT

Part 1-Introduction to Audit

Intro.1 SM23
Which of the following is not an advantage of audit?
a) It provides high quality financial information.
b) It acts as a moral check on employees.
c) It enhances risk of management bias.
d) It helps in safeguarding interests of shareholders.

Part 2-Core Audit Process

No Individual MCQ

Part 3-SA Introduction

SAIntro.1 SM23
Which of the following is NOT TRUE about an assurance engagement?
a) It relates to providing assurance about historical financial information only.
b) The practitioner obtains sufficient appropriate evidence.
c) There is some information to be examined by practitioner.
d) A written assurance report in appropriate form is issued by practitioner.

SAIntro.2 SM23
Which of the following is TRUE about Engagement Standards?
a) Engagement standards ensure proper rights to practitioners in course of performance of their
duties.

b) Engagement standards ensure preparation and presentation of financial statements in a
standardized manner.
c) Engagement standards ensure uniformity by practitioners in course of performance of their
duties.
d) Engagement standards ensure savings in resources of clients.

SAIntro.3 SM23
Consider following statements in relation to "Limited assurance engagement":-
Statement I - It involves obtaining sufficient appropriate evidence to draw reasonable conclusions.
Statement II - Review of interim financial information of a company is an example of limited
assurance engagement.

a) Statement I is correct. Statement II is incorrect.
b) Both Statements I and II are correct.
c) Both Statements I and II are incorrect.
d) Statement I is incorrect. Statement II is correct.

SAIntro.4 SM23
Which of the following is TRUE about Standards on auditing?
a) These deal mainly with voluntary responsibilities of auditors.
b) These deal mainly with mandatory responsibilities of auditors.
c) Their sole purpose is to help government authorities in augmenting revenues.
d) These deal mainly in carrying out audit according to legal provisions.

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