CA Inter Audit – Chapter 4 – Risk Assessment and Internal Control MCQs – Set I

Which of the following standard deal with auditor’s responsibilities with respect to risk assessment?

Which of the following is a type of audit procedure?

Which of the following risk assessment procedures are performed by auditor?

What are the components of risk of material misstatements?

Internal financial controls are policies and procedures adopted by company for which of the following?

____ is a complete and exhausted description of the system as found in operation by the auditors.

____ has been defined as the checks on day to day transactions which operate continuously as part of a routine system whereby the work of one person is provided independently or is complementary to the work of another, the object being the prevention or early detection of errors or fraud

Which of the following does not fall under general considerations in framing a system of internal check?

Audit Risk refers to risk that

Which risk is the risk for the company that an auditor may issue an unqualified report due to auditor’s failure to detect some misstatement either due to fraud or error is

For better assessing the audit risk, auditor inquires different groups in the organizations except:

Which is not included in audit risk?

what are the components of audit risk?

____ is mainly intended to ascertain whether the system of internal control is operating effective

____ is a series of instruction and questions which the auditor should follow and answer

what is the graphic presentation of each part of the entity’s internal controls system

____ gives a bird’s eye view of the system and flow of transactions

Which of the following is an inherent limitation of internal controls?

Objectives of internal controls can only be reasonably achieved but not absolutely due to

Company shall comply with requirement of section 138 of the Companies Act, 2013 with respect to internal audit within ____ months from applicability of the section

The frequency of surprise check should be done according to______

How many Standards on Internal Auditing are issued by the AASB

Surprise check may be with respect to

Which of the following statement is correct?

Internal control system provides reasonable assurance about the achievements of entity’s objectives, except which of the following?

Which of the following section of Companies Act, 2013 deals with requirement of internal audit in companies?

Which of the following persons can be appointed as internal auditor of company?

Section 138 of the Companies Act, 2013 shall apply to

The auditor must have a thorough understanding of the entity, the client’s business strategies, processes, and measurement indicators for critical success. This analysis helps the auditor in?

Which assertion is common among income statement and balance sheet captions?

Direct confirmation procedures are performed during audit of accounts receivable balances to address which balance sheet assertion

Control activities, whether within IT or manual system, have various objectives and are applied at various organizational and functional levels. Which of the following is an example of control activities?

Which of the following is not a component of Internal Control?

Significant risk refers to

Which of the following are performed as risk assessment procedures?

Virat Ltd. is engaged in business of selling accessories for personal computers through online mode, as an auditor how would you proceed in this regard as to understanding the entity and its environment?

Rohit Ltd. is in a highly competitive industry. The company’s products have a relatively shorter life cycle and product development is continuous in order to keep up with competitors. For the inventory account, the assertion upon which most audit efforts should be concentrated is

Hardik Limited decided that to improve earnings. To do this, they understated their expenses by omitting unpaid expenses from the accrued liabilities account at the end of the year. Which management assertion has been violated here?

The auditor shall identify and assess the risk of material misstatements for_____

For purposes of the SAs, which of the following meaning attributed to the term Assertions?

Which one of the following is not one of the categories of assertions identified in SA 315

What techniques should the auditor use in assessing the risk of material misstatements?

Risk of material misstatement has how many components

Risk of material misstatements is a function of

If inherent risk and control risk are assessed as high, then

Which of the following increases control risk?

Which of the following is correct?

Which of the following is not an assertion about account balances at the period end?

Which of the following in not an assertion about classes of transactions and events for the period under audit?

Factors relevant to the auditor’s judgement about whether a control, individually or in combination with others, is relevant to the audit may include which matters?

Which of the following is not likely to BE a fraud risk factor with respect to the management characteristics

The risk assessment procedures shall not include which of the following

Proper segregation of duties reduces the opportunities in which a person would______

Which of the following statement is not correct?

Which of the following statements is correct?

In assessing risks ase significant risk, which one of the following is not required to be considered by the auditor

Evaluation and assessment of audit findings and control deficiencies involves applying ______

Parameters for significant deficiency to be reported to those charged with governance, state which of the following is not correct with reference to the above?

Which of the following does not refers to significant deficiency in internal control?

Inherent Risk refers to