Page 83 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs

d) The original engagement and any procedures that may have been performed in the original
engagement.

210.8 SM21/M21M/N21M
If the auditor is unable to agree to a change of the terms of the audit engagement and is not

permitted by management to continue the original audit engagement, the auditor shall:
a) Withdraw from the audit engagement where possible under applicable law or regulation;
b) Determine whether there is any obligation, either contractual or otherwise, to report the
circumstances to other parties, such as those charged with governance, owners or regulators.
c) Withdraw from the audit engagement where possible under applicable law or regulation and
determine whether there is any obligation, either contractual or otherwise, to report the
circumstances to other parties, such as those charged with governance, owners or regulators.
d) Withdraw from the audit engagement where possible under applicable law or regulation or
determine whether there is any obligation, either contractual or otherwise, to report the
circumstances to other parties, such as those charged with governance, owners or regulators.

210.9 M22M
The agreed terms of the audit engagement shall be recorded in an audit engagement letter or other
suitable form of written agreement and shall include:

(i) The objective and scope of the audit of the financial statements;
(ii) The responsibilities of the auditor;
(iii) The responsibilities of management;
(iv) Identification of the applicable financial reporting framework for the preparation of the financial
statements; and
(v) Reference to the expected form and content of any reports to be issued by the auditor and a
statement that there may be circumstances in which a report may differ from its expected form and
content.
Which of the following is correct?

a) (a) (i),(ii),(iii)
b) (b) (i),(ii),(iii), (iv), (v)
c) (c) (i),(ii), (iv), (v)
d) (d) (i),(ii),(iii), (iv)

210.10 N22R
As per SA-210, preconditions for an audit do not include which of the following?

a) Acceptability of financial reporting framework.
b) Responsibility of management regarding preparation of financial statements.
c) Making available records to the auditor.
d) Integrity of key management personnel.

210.11 SM23

Which of the following is not necessary to establish preconditions for an audit?
a) Acceptability of financial reporting framework.
b) Acknowledgment of cooperation from management in designing audit procedures.
c) Acknowledgment from management of providing access to persons within company.
d) Acknowledgment of management in understanding its responsibility for preparation of
financial statements.

www.auditguru.in 77 | P a g e