Page 8 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs
Part 4-SA 200

200.1 M19M
The matter of difficulty, time, or cost involved is:

a) not in itself a valid basis for the auditor to omit an audit procedure for which there is no
alternative.

b) in itself a valid basis for the auditor to omit an audit procedure for which there is no alternative.
c) not in itself a valid basis for the auditor to omit an audit procedure for which alternative exists.
d) not in itself a valid basis for the auditor to omit an audit procedure.

200.2 SM21
As explained in SA 200, “Overall Objectives of the Independent Auditor and the Conduct of an Audit
in Accordance with Standards on Auditing”, _________is obtained when the auditor has obtained
sufficient appropriate audit evidence to reduce audit risk (i.e., the risk that the auditor expresses
an inappropriate opinion when the financial statements are materially misstated) to an acceptably
low level.
a) absolute assurance
b) limited assurance
c) reasonable assurance
d) reasonable or absolute assurance

200.4 SM21
As per SA-200 “Overall Objectives of the Independent Auditor”, in conducting an audit of financial

statements, the overall objectives of the auditor are:
a) To obtain reasonable assurance
b) To report on the financial statements
c) Both (a)and (b) above
d) none of the above

200.5 N19M
Professional skepticism is necessary to the critical assessment of
a) audit documentation
b) audit evidence.
c) audit procedures
d) All of the above

200.6 SM21
In order to form the opinion, the auditor shall conclude as to whether the auditor has obtained
______ about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error.
a) reasonable assurance
b) absolute assurance
c) Limited assurance
d) None of the above

200.7 SM21
(IESBA Code) related to an audit of financial statements establishes which of the following as the
fundamental principles of professional ethics relevant to the auditor when conducting an audit of
financial statements:
a) Integrity;
b) Objectivity;
c) Professional competence and due care;

www.auditguru.in 2 | P a g e