CA Inter Auditing and Assurance Quiz ( ICAI 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.

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