CA Inter Audit – Chapter 2 – Audit Strategy, Audit Planning and Audit Programme MCQs

Planning an audit involves establishing audit strategy and ____

Which of the following is not an advantage of audit planning?

_____ sets the scope, timing and direction of the audit and guides the development of the more detailed audit plan.

Once the overall ____ has been established, the ____ can be developed.

Identifying and assessing the risk of material misstatement through understanding the entity and its environment is determined under which SA?

The ____ is more detailed than the ____.

The auditor shall obtain an understanding of the following except

As per SA-300, ____ is not a discrete phase of audit, but rather a continual and iterative process.

Planning includes the need to consider prior to the auditor’s identification and assessments of risks of material misstatements, such matters as

The auditor may decide to discuss elements of planning with whom to facilitate the conduct and management of audit engagement.

The overall audit strategy and audit plan remain _____ responsibility.

_____ in the assessed risk of material misstatement for a given area of the audit requires a corresponding ____ in the extent and timeliness of supervision of engagement team members.

The examples of potential business risks include

The ____ of the audit plan is a record of the planned nature, timing and extent of risk assessment procedures and further audit procedures at the assertion level in response to the assessed risks.

what consists of a series of verification procedures to be applied to the financial statements and accounts of a company for the purpose of obtaining sufficient evidence to enable the auditor to express an opinion.

Evolving one audit programme applicable to all business under all circumstances is ____.

The auditor shall document

The programme which aims at providing for a minimum essential work is known as ____

The audit programme ideally commences at

The information used by the auditor in arriving at the conclusions on which the auditor’s opinion is based is known as

Which of these is not an example of an audit evidence

For verifying cash in hand the best evidence available is

Which of the following is an advantage of audit programme?

Which of the following is not a disadvantage of an audit programme?

Which standard lays down standards on the quality control

Audit programme is prepared to

In choosing benchmark which of the following matter is not relevant?

In determining the level of materiality which of the following factors is not concerned

Audit plan includes the following:
[a] identify the problems, [b] address those problems, [c] take necessary steps to prevent them, [d] provide guidelines for the next audit
Choose the correct option

As per SA-315, understanding the business environment helps in

A company should disclose by way of notes additional information regarding any item of income or expenditure which exceeds ___% of the revenue from operations or Rs _____ whichever is higher

A company should disclose in notes to accounts, shares in the company held by each shareholder holding more than ____% shares specifying the number of shares held

Misstatements are material if expected to influence the ____ decisions of users taken on the basis of the financial statements.

The concept of materiality is applied by the auditor in

Performance materiality means the amounts set by the auditor at ____ materiality for the financial statements as a whole.

Understanding key suppliers and customer relationships helps the auditor in

For a cooperative society, Shyam is assigned for compliance procedures while Virat is assigned for substantive procedures. Which of the following is correct?

Where the audit risk is ____, the materiality level is ____ and thus the audit procedure is _____.

What is the best evidence for investments pledged with banks?

Which of the following amounts shall be included in the audit documentation?