CA Inter Auditing and Assurance Quiz ( ICAI 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:

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