Welcome to our CA Inter Auditing and Assurance quiz page! Our quiz covers questions from the ICAI MCQ booklet Question No. 1-20 to help you prepare for your upcoming exam. Test your knowledge and see how well you perform. Good luck!

MCQ 1-20

1. ____________ along with other disciplines such as accounting and law, equips you with all the knowledge that is required to enter into auditing as a profession.

2. No business or institution can effectively carry on its activities without the help of proper ____________:

3. As per SA-200 “Overall Objectives of the Independent Auditor”, in conducting an audit of financial statements, the overall objectives of the auditor are:

4. (IESBA Code) related to an audit of financial statements establishes which of the following as the fundamental principle of professional ethics relevant to

5. The auditor’s _________ safeguards the auditor’s ability to form an audit opinion without being affected by any influences.

6. Which of the following is the responsibility of the auditor:

7. An employee of Fruits and Vegetables Limited was of the opinion that auditor of a company is required to express an opinion. On which one of the following the auditor of a company is required to express an opinion:

8. The auditor of Delicious Sweets Limited was of the opinion that objective of audit of financial statements of a company is to provide reasonable assurance that financial statements of that company are free from misstatements. Which type of misstatements are mentioned by auditor of Delicious Sweets Limited:

9. If the auditor concludes that there is reasonable justification to change the engagement and if the audit work performed complied with the SAs applicable to the changed engagement, the report issued would be appropriate for the revised terms of engagement. In order to avoid confusion, the report would not include reference to:

10. 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:

11. A request from the client for the auditor to change the engagement may result from- 1. a change in circumstances affecting the need for the service, 2. a misunderstanding as to the nature of an audit or related service originally requested a restriction on the scope of the engagement, 3. whether imposed by management or caused by circumstances.

12. Standard on Quality Control (SQC) 1 provides that,

13. 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.

14. ________ sets the scope, timing & direction of the audit and guides the development of the more detailed plan.

15. Planning is ______ process of an audit that often begins shortly after (or in connection with) the completion of the previous audit and continues until the completion of current Audit engagement:

16. Statement 1: The establishment of the overall audit strategy and the detailed audit plan are not necessarily discrete or sequential process but are closely inter-related. Statement 2: The auditor shall establish an overall audit strategy that guides the development of audit plan.

17. which of the following is not addressed by the overall audit strategy :

18. The overall audit strategy and the audit plan remain the _______ responsibility

19. Determining a percentage to be applied to a chosen benchmark (in relation to materiality) involves the exercise of ________

20. Which of the following is not an example of benchmarks in determining materiality for the Financial Statements as whole:

MCQ 21-40

21. Which of the following is correct:

22. Planning an audit involves

23. When planning the audit,

24. SA 320 on “Materiality in Planning and Performing an Audit” requires that an auditor

25. Which of the following is true:

26. Once the overall audit strategy has been established, _______can be developed to address the various matters identified in the overall audit strategy, taking into account the need to achieve the audit objectives through the efficient use of the auditor’s resources.

27. The auditor shall develop an audit plan that shall include a description of:

28. Statement 1: A response that indicates a difference between information requested to be confirmed and information provided by confirming party is Negative Confirmation. Statement 2: A failure of the confirming party to respond, or fully respond, to a positive confirmation request, or a confirmation request returned undelivered is exception.

29. CA Vijay is the statutory auditor of XYZ Ltd. for the FY 2021-22. During the process of assembling the audit file, CA Vijay briefed his team as to what all changes can be made to the audit documentation at that stage. Which of the following changes cannot be made to the audit documentation during the final assembly process?

30. Which of the following is not correct?

31. ____________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 risk of material misstatement.

32. Audit documentation provides:

33. Which of the following is correct:

34. Audit evidence includes

35. The auditor shall design and perform audit procedures in order to identify litigation and claims involving the entity which may give rise to a risk of material misstatement, including:

36. If the auditor is unable to obtain sufficient appropriate audit evidence regarding the opening balances, the auditor shall express:

37. Auditor’s judgment as to sufficiency may be affected by the factors such as:

38. The auditor has no obligation to perform any audit procedures regarding the financial statements after the date of the auditor’s report. However, when, after the date of the auditor’s report but before the date the financial statements are issued, a fact becomes known to the auditor that, had it been known to the auditor at the date of the auditor’s report, may have caused the auditor to amend the auditor’s report, the auditor shall:

39. Audit risk is a function of __________

40. For a given level of audit risk, the acceptable level of detection risk bears ________relationship to the assessed risks of material misstatement at the assertion level.