CA Final Audit – Chapter 1 – Auditing Standards, Statements and Guidance Notes – An Overview MCQs – Set II

The letter describing weaknesses in internal control is to be communicated in writing to management and those charged with governance is known as ______.

Statement 1: Ineffective response to identified significant Risks is an Indicators of Significant Deficiencies
Statement 2: Indicators of Significant Deficiencies is an Indicators of Significant Deficiencies

Communication of deficiencies in Internal Control shall be in _________

A joint audit is an audit of F.S. of an entity by ________- auditors appointed with the objective of issuing the audit report.

The work allocation document shall be signed by all the __________ & same shall be communicated to TCWG

Where joint auditor are appointed they should by _______, divide the work among themselves

If a joint auditor comes across matters which are significant and relevant to the other joint auditors and which deserve other auditor‟s attention, he should communicate the same to all other joint auditors ________

where the joint auditors are in disagreement with the regard to any matters to be covered in the report, each one of them should ___________.

Which of the following can be basis of division of work among the joint auditor?

In which of the following case joint auditor shall not be jointly and severally liable?

Mr. Sachin and Mr. Kunal were joint auditors of a company. On an audit point Mr. Kunal was of the view that it will attract qualification however Mr. Sachin disagreed with his opinion. How audit report should be made in such circumstance?

Each joint auditor is entitled to assume that the other joint auditors have carried
out their part of the audit work and the work has actually been performed in
accordance with the SAs.

As per SA 300 the objective of the auditor is to _____ the audit so that it will be performed in an effective manner

The _______ and the other key members of ______shall be involved in planning the audit

When Control Risk and Inherent Risk is High, Detection Risk is ______.

As a part of obtaining the understanding of an entity, the auditor shall evaluate whether the management with the oversight of those charged with governance, has created and maintained a culture of ______

In understanding the entity’s control activities, the auditor shall obtain an understanding of how the entity has responded to risks arising from _____.

The auditor considers materiality from the point of _________.

An item or information is said to be material if misstatement of which can influence the ________.

Judgment of materiality provides a basis for

In accordance with SA – 330, the auditor shall design and perform further audit procedures whose nature, timing and extent are responsive to the assessed risks of material misstatement due to fraud at _________.

There is a ________ relationship between Detection Risk and the combined level of Inherent and control risk

Surprise checks help the auditor to ascertain if the ______ is operating effectively

In which of the following circumstances external confirmation may be used as substantive procedure

Substantive procedure comprise of ____________

The auditor should consider how a ______ affects the client‟s accounting and internal control systems so that to plan the audit and develop an effective audit approach.

Which auditor at the request of service organization, provides assurance report on the controls of service organization

If user auditor is unable to obtain a sufficient understanding from the user entity,
user auditor shall obtain that understanding by obtaining ________

The aggregate of misstatements accumulated during the audit approaches _______ determined in accordance with SA 320

If management refuses to correct some or all the material misstatement communicated by the auditor, the auditor shall ________ for not making the corrections and shall take that understanding into account when evaluating whether financial statement as a whole are free from material misstatement

What are the sources of misstatement other than fraud?

Difference between that clearly trivial amounts, classification, presentation
or disclosure of a reported financial statement item, and amount, classification, presentation or disclosure that is required for the item to be in accordance of FRF is known as ____

If at the auditor‟s request, management has examined a class of transactions, account balance or disclosure and corrected misstatements that were detected, the auditor shall perform _______ to determine whether misstatements remains.

Sufficieny is affected by _________

Appropriateness is affected by _______

__________ shall evaluate the design and implementation of relevant controls of
user entity that relate to the services provided by service organization.

Audit Evidence in form of Working papers will include:

As per sa 501, auditor is required to obtain SAAE for ______