QCS1(1)Audit documentation and completion
1 marks easy
Case: Mrs SPRL & Associates are appointed as auditors of XYZ Ltd. for the Financial Year 2021-22. The audit team consists of Mr. S (engagement partner), Mr. P (senior member), and Mr. R (experienced auditor). Various audit procedures and Standards on Auditing are being discussed and applied.
_____ is the summary of significant matters identified during audit and why they are addressed
(a) Audit File
(b) Audit Programme
(c) Completion memoranda
(d) Checklists
QCS1(2)Audit risk and risk assessment
1 marks easy
Case: Mrs SPRL & Associates are appointed as auditors of XYZ Ltd. for the Financial Year 2021-22. The audit team consists of Mr. S (engagement partner), Mr. P (senior member), and Mr. R (experienced auditor). Various audit procedures and Standards on Auditing are being discussed and applied.
The susceptibility of an assertion to a misstatement that could be material before consideration of any related controls is called
(a) Control Risk
(b) Inherent Risk
(c) Audit Risk
(d) Significant Risk
QCS1(3)Audit procedures classification
1 marks easy
Case: Mrs SPRL & Associates are appointed as auditors of XYZ Ltd. for the Financial Year 2021-22. The audit team consists of Mr. S (engagement partner), Mr. P (senior member), and Mr. R (experienced auditor). Various audit procedures and Standards on Auditing are being discussed and applied.
Statement 1: Audit procedures consist of Risk Assessment Procedures and other procedures. Statement 2: Audit procedures consist of test of details and analytical procedures.
(a) Only Statement 1 is correct
(b) Only Statement 2 is correct
(c) Both 1 & 2 are correct
(d) Both 1 & 2 are incorrect
QCS1(4)Risk assessment procedures
1 marks easy
Case: Mrs SPRL & Associates are appointed as auditors of XYZ Ltd. for the Financial Year 2021-22. The audit team consists of Mr. S (engagement partner), Mr. P (senior member), and Mr. R (experienced auditor). Various audit procedures and Standards on Auditing are being discussed and applied.
_____ refers to the audit procedures performed to obtain an understanding of the entity and its environment, including the entity's internal control, to identify and assess the risks of material misstatement, whether due to fraud or error at the financial statement and assertion level.
(a) Risk Assessment Procedures
(b) Risk Assessment Procedures
(c) Audit Procedures
(d) Substantive Analytical Procedures
QCS1(5)Substantive procedures and control tests
1 marks easy
Case: Mrs SPRL & Associates are appointed as auditors of XYZ Ltd. for the Financial Year 2021-22. The audit team consists of Mr. S (engagement partner), Mr. P (senior member), and Mr. R (experienced auditor). Various audit procedures and Standards on Auditing are being discussed and applied.
Statement 1: Substantive Procedures alone can provide sufficient and appropriate audit evidence at the assertion level. Statement 2: Test of Control is audit procedure designed to evaluate the operating effectiveness of the assertion level.
(a) Only Statement 1 is correct
(b) Only Statement 2 is correct
(c) Both 1 & 2 are correct
(d) Both 1 & 2 are incorrect
QCS2(1)Audit evidence and representations
1 marks easy
Case: Venus Ltd. & Associates have been appointed as auditors of Venus Ltd. for the Financial Year 2020-21. During the audit, the auditors notice certain large expenses charged to revenue instead of being capitalized. Material issues include corporate social responsibility expenses and major asset changes. Related party transactions and subsequent events require consideration. Litigations against Venus Ltd. may impact going concern.
Statement 1: Absence of Material Representations provides necessary audit evidence, they do not provide sufficient audit evidence.
Q1Written Representations in Audit
5 marks medium
Statement 2: Written Representations do not include financial statements, the assertions within, or supporting books and records
(A) Only Statement 2 is correct
(B) Only Statement 2 is correct
(C) Both Statement 1 & 2 are correct
(D) None of Statement 1 & 2 is correct
Q1Audit Concepts and Procedures
7 marks hard
Examine with reasons (in short) whether the following statements are correct or incorrect. (Attempt any 7 out of 8)
Q2Litigation and Claims Identification
5 marks medium
The auditor can perform the following procedures to identify litigation and claims of Venue Ltd -
(A) Review legal agreements
(B) Review legal expense account
(C) Reviewing minutes of meetings of those charged by governance and correspondence between entity and external legal counsel
(D) (i) (ii) are correct
Q2Audit Planning and Policies
10 marks hard
Discuss the following:
Q3Confirmation Procedures
5 marks medium
Negative confirmation requests require the third party to respond in the following cases -
(A) If there is agreement
(B) If there is disagreement
(C) In both cases of agreement as well as disagreement
(D) None of the above
Q3Internal Control Evaluation
3 marks medium
When audits determine deficiencies and report on internal controls, he determines the significant financial statement assumptions that are affected by ineffective controls in order to evaluate the effect on control risk assessments and strategy for the audit of the financial statements. Explain.
Q3cIT systems and audit impact
3 marks medium
Describe new norms of IT systems. If not mitigated, could have an impact on audit.
Q3dCorporate governance
2 marks easy
The trust and corporate governance issues in 2008 resulted in [text continues but not fully legible in image]
Q4Confirmation Exceptions
5 marks medium
Statement 2: A response that indicates difference between information requested to be confirmed and contingent liability records and information provided by the confirming party is a case of Exception.
(A) Only Statement 1 is correct
(B) Only Statement 2 is correct
(C) Both Statement 1 & 2 are correct
(D) None of Statement 1 & 2 is correct
Q4Auditor's Report Requirements
3 marks medium
The auditor shall make a report to the members of the company on the accounts examined by him. Explain with reference to the relevant provisions of the Companies Act, 2013.
Q4aCARO 2020
4 marks medium
Discuss the reporting requirements as per CARO 2020; regarding:
(i) internal and stipulated statutory dues and
(ii) internal audit system of the company
Q4bCompanies Act 2013 disclosures
4 marks medium
What are the applicants required to be made by the company as per Schedule II (Part I) to Companies Act, 2013?
Q5Related Party Transactions
5 marks medium
Which statement best describes related party transactions are common: (i) Many related party transactions are the normal course of business. (ii) Related party transactions may not be conducted under normal market terms and conditions. (iii) In some circumstances, related party transactions may give rise to higher risks of material misstatement.
(A) only (i) is correct
(B) (i) & (ii) are correct
(C) (i), (ii) & (iii) are correct
(D) (i) and (ii) are correct
Q5Audit Risk and Detection Risk
1 marks easy
An Accountant is CA-900 doing in the relevant institutions of an audit. There is unpredictable risk and material misstatements of the financial statements will not be detected, even though the audit is properly planned and performed in accordance with the ISAs.
(A) The risk of not detecting a material misstatement resulting from fraud is higher than the risk of not detecting a material misstatement from error.
(B) Risk assessment procedures for detecting material misstatement resulting from management fraud is greater than for employee fraud.
Q6Audit Strategy and Planning
5 marks medium
The overall audit strategy and the audit plan remain the ___ responsibility
(A) auditor's
(B) management's
(C) audit committee's
(D) both management and those charged with governance
Q6Cost Auditor Appointment
1 marks easy
Any casual vacancy in the office of a Cost Auditor, whether due to resignation, death or removal, shall be filled by the [?] for the rest of the term of office. Only in consequence of such vacancy shall the company shall inform the central government within [?] days of such appointment of cost auditor.
(A) 45 Days
(B) 60 Days
(C) 90 Days
Q6aRBI non-performing guidelines
4 marks medium
When are following considered as non performing as per the RBI guidelines?
(i) Inventories
(ii) Travel advances & stock
Q6bBank security creation modes
4 marks medium
Explain policy and set all the modes of creation of security with respect to advance created by a bank.
Q7Auditor's Responsibilities Post-Report
5 marks medium
The auditor has no obligation to perform any audit procedures regarding the financial statements after finalizing the auditor's report; however, even after the date of the auditor's report, the auditor may become aware of facts that existed at the date of the auditor report. If the auditor has become aware of such facts, the auditor has a duty with regards to
(A) Discuss the matter with management and, where appropriate, those charged with governance
(B) Disclose this to NFRA
(C) Inquire how management intends to address the matter in the financial statements
(D) None of the above
Q7Audit Documentation
1 marks easy
[term] refers to the record of audit procedures performed, relevant audit evidence obtained, and conclusions the auditor reached.
(A) Audit Techniques
(B) Audit Evidence
(C) Audit Documentation
(D) Audit Procedures note
Q8Auditor Responsibilities and Standards
5 marks medium
Which of the following is incorrect:
(A) An auditor conducting an audit in accordance with SAs is responsible for obtaining absolute assurance that the financial statements as a whole are free from material misstatement
(B) An auditor conducting an audit in accordance with SAs is responsible for obtaining absolute assurance that the financial statements as a whole are free from material misstatement
(C) Auditors should maintain an attitude of professional skepticism at the assertion level
(D) None of the above
Q8Fraud Reporting Requirements
1 marks easy
In case of Frauds involving amount less than INR 1 crore, the auditor should report to the -
(A) Central Government
(B) Reserve Bank of India
(C) Bank's Board/Audit Committee
(D) Comptroller & Audit General
Q9Non-Performing Assets (NPA)
1 marks easy
Case: Mrs Reema has availed a Personal Loan for INR 5 lakhs and a Vehicle Loan for INR 2 lakhs. She is repaying INR 5 lakhs of the Active Loan but has not made any additional payment to the Personal Loan.
Mrs Reema has availed a Personal Loan for the Purpose of INR 5 lakhs and a Vehicle Loan to purchase a vehicle worth INR 2 lakhs. She is repaying INR 5 lakhs of the Active Loan but has not made any additional payment to the Personal Loan. In such case, which of the following deduction should be categorized as NPA?
(A) Active Loan
(B) Personal Loan
(C) Higher of the two
(D) Both the Active Loan & the Personal Loan
Q10Accounting Records
1 marks easy
After all necessary expenditure has been incurred and the accounts are closed, the Appropriation Entry is passed in the -
(A) CRA
(B) President
(C) Public Accounts Committee
(D) Padangiri