Audit in Class MCQs

CA Final Audit In Class MCQs by CA Sarthak Jain
L1 Professional Ethics
S.No Poll/Quiz A B C D E Correct Ans
While doing job, he is also filing return of income tax and providing
1 tax consultancy to peer employees of itc limited for a consideration, Y N A
whether deemebed in practice?
CA SJ is doing job ITC limited in internal audit department. whether Deemed to be in

2 No B
he is practice
1 ICAI code is applicable on Body Corporate Company Body of Individuals AOP Society A
A CA has opened up 10 offices in different parts of the country where

no name board of firm is fixed. the address of such offices are also
2 Y N B
not a mentioned as branch or office in any stationary etc. whether CA
needs to have a member in charge for such offices?
CA has opened another office in the same building on different floor

3 and has put up his firms name board at both offices in the same Y N A
building, whether treated as branch?
A CAip as a proprietor has only his main office and puts up his firm
4 Y N A
name board at main office and residence, whether guilty?
CA firm has a branch in hilly area, ooty he shifts his office for 3
5 months in April 2022 to nearby plan area, connor and informs ICAI of Y N A
this. whether guilty?
CA. Deepak all India rank CA rank holder chartered accountant

6 Y N A
....guilty?
Yes, only if CAiP, else

7 CA.Aakash director - ril (bcom....) guilty Yes No B
no
8 CA. Priyanka director - nykaa president - mahila udyong sangh Guilty Not guilty B
9 CA. CS. dr pooja partner - kpmg she is a CAip whether guilty? Y N A
CA in service in TCS, files it returns of his peers, for a nominal fees,

10 Y N A
whether he will be deemed to be in practice?
Cannot render without
Never render such obtaining prior permission
11 PMS have been excluded from mcs means a CAip CAn B
services of Council to engage in
such other businesses
A CA doing job in itc limited, internal audit department, conducts

12 Y N B
audit of its divisions, whether deemebed to be in practice?
CA big bull was found guilty and his cop was suspended for period of
6 months by he council. during this period since he was not having a
13 cop he did not mention that he is a CA to any of his clients and Y N A
started providing investment advisory services in Capacity of a normal
person and not a CA is he guilty?
A CA has been convicted for an offence of moral turpitude in which

14 he could have been fined or imprisoned, but was only fined not Y N A
imprisoned, whether s8 disability attracted?
Being a CA is it mandatory to follow ICAI's code prescribed for Yes but only for Not mandatory, only
15 Yes A
professional as well as personal conducts? professional conducts recommendatory
A CA advertised to rent out his property, in a newspaper, whether

1 Y N B
guilty under c6p1s1
A CA firm runs a profit linked bonus plan for its employees given to
2 them at year end on appraisal as performance bonus, whether the CA Y N A
is guilty?
CA enters into an agreement with tax consultant to get client from
3 him and in return pay 20% commission. CA gets no clients from tax Y N A
consultant, guilty?
CA agrees to refer tax clients to a tax consultant and get audit clients
4 Y Not guilty B
in return from him, is he guilty under cl2-p1_si (no fees is ahred)
CA rents out a commercial office space he owns through an agent and

5 Y N B
the agent charges 10% of rent as commission, whether CA is guilty?
CA taka loan for office and agrees to repay the loan as 20% of profits
6 Y N A
every year till loan is repaid. whether CA is guilty?
A CA got outstation stock verification assignment. he outsourced the
work to an ex-article (still doing CA) and agreed to pay fixed 1000 on
7 Y N A
completion of work. CA himself will receive 20000 fees. is this sharing
of fees and CA guilty?
A CA got outstation stock verification assignment. he outsourced the
work to an ex-article (still doing CA) and agreed to pay fixed 1000 on
8 Y N B
completion of work. CA himself will receive 20000 fees. is this sharing
of fees and CA guilty?
A CA opens up a new office and inaugrates it. the CA also gives an
9 advt in newspaper about his office inaugration and CAlls people to Y N A
visit the office. is he guilty?
CA is appointed as liquidator of kingfisher Calendar limited a firm

thats got insolvent. he advertises in paper for auction of company
10 Y N B
assets and asks interested parties to communiCAte to the CA firm.
firm anme and address is given in the paper advt. guilty?
Bank wants to appoint concurrent auditor gives a paper advt for
tender open for only CAs to apply any professional CAn statutorily do
11 Y N A
concurrent audit but bank policy is to only appoint CA as concurrent
auditor tender has no minimum fees CAn CA apply?
Do not accept internal Can accept both

CA x introduced his client xyz ltd to CA y and aksed CA y to complete
Do not accept IA and can audit, ask client to provided X was
the internal audit assignment of xyz. later xyz approached CA y to do Do not accept
1 accept Project finance come to him for not earlier C
its : a. internal audit of next year b. project finance consultancy what either of the work
work finance work thru CA appointed as IA
should CA y do?
X for CY
A CA organized his 50th birthday party and sent out invitations to

many people including his firms partners friends and relatives and he
2 Y N B
used the designation chartered accountant with his name ....no firm
or work details were given. guilty
Sita made her wedding invitation CArd and circulated to relatives and
3 friends of herself and her partner gita where the Card had firm name Y N A
guilty?
CA advertised in newpaper his office inaugration and invited all

4 residents of the city...mentioned firm name and address, guilty? no Y N A
designation work solicitng prof attaintments highlight nahi kiye
A CAip sent a letter to all CAs in india seeking professional work, is he

5 Y N B
guilty?
CAipp has sent whatsapp messages to all CAip indiCAting his Y for not seeking work
Y for seeking work
6 superiority in liasoning with government departments and looks for from CAIP work N B
from CAiP
outsourced work from CAip, guilyt? appropriately
CA X has written a book on "first attempt my last" wherein he has
7 mentioned his association as senior manager in CA firm pw & co Y N B
guilty?
I have been appointed as a stock auditor a of a existing company,

1 Y N A
whether cl8 applies
We have been appointed as auditor of a branch of a

2 Y N A
nationalized bank by cg, whether cl 8 applicable?
An entity appointed us as tax auditor for ay 23-24 and there was no

3 tax audit in 22-23 and in 21-22 there was another CA appointed as tax Y N A
auditor. whether cl 8 applies?
We have been appointed as investigator under CA in cy. py another

4 firm of CA was appointed as investigator and separate firm as Stat auditor Investigator Both None D
statutory auditor, do i need to necessarily communicate with
PY joint auditors a and b this year company appointed joint auditors b

5 Y N A
and c whether b needs to communicate with a?
Auditor appointed - y&co previous auditor - x & co y & co accepted,

6 started the work and then communicated with x & co ok as client was Y N B
in a hurry due to its bank obligations?
Client was in hurry to file tax audit report on 30 sep and his previous
7 CA is not responding, we have just 3 days to accept and file the report Y N B
should we accept
CA inadvertently (erroneously) accepted a tax audit assignment . later

on becoming aware of his mistake, he held the work, requested the
8 client to let him communicate to previous auditor and would issue Y N A
report only if previous auditor gave appropriate noc. client agreed. CA
guilty under cl8?
CAip acts as a liquidator is it treated as engaging in any othert bis or
9 Y N B
occupation?
CAes cost optimization services one of its audit client, where he

10 Y N B
charges fees as % of cost savings, whether guty?
We have been appointed as auditor in place of previous auditor x &

11 co CA firm. whether communication required if previous auditor Y N A
resigned / completed his term and is now in cooling
Auditor appointed - y&co previous auditor - x & co y & co accepted,

12 Y N B
started the work and then communicated with x & co ok?
Previous auditor complaints of frauds in company the reason for his

13 Y N His choice C
removal, should incoming auditor accept?
Ppreus auditor in response to communication under clause 8,

mentioned that the company is into frauds and gave details of the
14 Y N A
frauds which he found, because of which company removed him as
auditor, is precious auditor guilty of confidentiality?
Previous auditor of a sick unit complained of improper removal, CAn

15 Y N B
incoming auditor accept audit?
A CA is appointed as a ne director in a company where he is having Y with prior

1 Y N A
significant equity stake. CAn he accept? permission
CAip has accepted ned in company that is controlled by his wife,

Y if permission not
2 whether guilty if he or any of his partner is not interested as auditor Y N B
obtained
in that company?
CA has accepted position of an independent director in a company N as he is not NED but N, unless
3 Y N A
where he/his partner not interested as auditor. ok? independent director permission taken
No permission will be
Wife ke father has substantial interest in a company, and CAip wants He should seek granted as treated
4 General permission C
to engage in pt employment in that business concern, then specific permission that CA has
substantial interest
Needs to obtain
Will loose his attestation
5 CAip takes private tutions for more than 25 hours in a week, he specific prior Both of above None of above B
powers
permission
Multipurpose empanelment form being filled by ICAI to be shared
with banks / rbi for empanelling statutory bank auditors. a CA
6 s1 p3 c3 s2 p2 c3 B
knowigly provides wrong information in this empanelment form,
guilty under
A CA has been held guilty by a civil court for blackmailing his client
and is punished with imprisonment for 6 months (under ipc
7 S1 S2 B
imprisonment for black mailing is 6 months to 3 years). CA guilty of
om under
A CA offers to file it returns of all branch employees, free of cost, if Yes, whether loan is
8 No Yes, if loan is for office C
loan is sanctioned to him. whether om under cl2-p4-s1 for office or personal
Whether Confidentiality will prohibit sharing of information in

following cases: 1. IT Department asking CA of client some
information, under a Search conducted 2. Previous auditor while
1 1 2 3 All 1 and 3 B
communicating to Incoming auditor under Cl 8-1-1 3. Peer Reviewer
of CA Firm where reviewer asks for information / WP of specific client
of CAiP
CA Relative holds PSC of Face Value 1Lacs in subsidiary of H Ltd can No as relative cannt old Yes as PSCC are not
2 Yes as within limits B
CA be appointed as auditor of H Ltd? any security in Subsidiary considered
A CA has 1% SH in a company can he accept appointment as auditor

3 Y N B
of that company...?
CA Mukesh Ambani is a CAiP and is appointed as auditor by a

company RADA Ltd where his brother has substantial interest.
4 However, mukesh and his brother live separately and their decisions Y N B
are not influenced based on this relationship. Whether CA mukesh
can accept this audit
CA has 19% ESC of a company, can he do its audit? no other ESC part
5 Y N B
is held byCA or his partners or relatives
Cannot accept as he
Can accept he is just a
6 A CAiP has been appointed as auditor of ICAI. Comment has substantial B
member does not have SI
interest
CA has been appointed to prepare cost sheets of a company where

7 Y N A
his wife has 20% voting power, can accept?
CA Firm with 10 CAiP accepted 600 tax audit u/s 44Ab of an AY all
1 Y N B
signed by 1 CAiP, guilty
Wife complained to ICAI that she gave her practicing CA husband

2 money to pay for school fees of kids which he misused to invest in 10-1-2 4-2-2 2-4-1 No misconduct D
stocks, guilty in which clause?
CA recd clients money for for investing in stocks and forgot to invest
3 timely basis he got late in making the investment and client had to Y under clause 10 Y under some other clause Both Not guilty C
suffer losses, which he reimbursed. Guilty?
Client gave money for buying stamps, auditor kept in separate bank
4 account, was to be used after a month, so auditor used it temporarily Y N A
and returned before the stamp were to be purchased. Guilty
Whether clause requires money of client to be kept in separate bank

5 Client Firm / member B
account in the name of
CA has been given advance by the client to deposit advance tax on

6 due date, which is 3 days from today and fails to keep that money in Y N A
separate bank account, guilty?
Advance given to auditor for out of pocket expenses, whether to be

7 Y N B
kept in separate bank account?
Y if excess the
8 A Ca has received audit fees in advance, guilty? Y N indebstness limit C
prescribed
9 Which is mandatory to be followed? 1Standards 2GN 3Statements 1 1 and 2 1 and 3 all none C
Auditor appointed on 30-09-2023 for 2023-24 FY audit. Auditor was
10 Y N A
indebted from 1-4-23 to 29-9-23. Can he accept?
L9 PE - IESBA Code
Same CA is auditing FAST Education since last 17 years. FAST

1 Y N B
Education is a partnership firm. CA guilty?
Relative is a partner in a firm with 10% profit share, can CA do its

2 Y N B
audit?
AB&Co CA firm audited by CA. X (partner in XY & Co) XY & Co CA firm

3 Y N A
audited by CA A (partner in Ab & Co). OK?
L10 PSU CH15
1 CAG how many 1 for India 1 for every State Both A
Department /
2 CAG Post / Person Institute A
Ministry
IN CASE OF PSU, DIRECT REPORTING ENGAGEMENT DOES NOT Comprehensive

3 Performance audits Compliance audits Financial audits C
INCLUDE: (ICAI-MCQs Booklet, MTP-May-2021) Audit
L11 PSU CH15
Goi Ran A Campaign For Pulse Polio In Which They Spent 1000 Crores
On Advertisements To Update Citizens About The Free Polio
Vaccination. Majority Of These Advt Were Placed On Cartoon
1 Network Being The Ost Economical And Direct Targeting The Target Y N
Beneficiaries Of The Programme. Whether This Matter Needs To Be
Reported By The Auditor If Proper Documentation Of Bills Etc Is
Available?
You Have Been Given An Assignment Of Audit Of It Department Of A

Comprehensive
2 Psu. A Checklist Was Handed Over To You Which Contained Many Propriety audit. Compliance audit. Financial audit. C
audit.
Questions Such As,
A Report Submitted By You After An Audit Of A Public Sector Unit Is Public Accounts Committee on Public Estimates Public sector
3 B
More Likely To Be Finally Reviewed By (Icai-Mcqs Booklet) Committee (PAC). Undertakings (COPU). Committee. Committee.
Nop Ltd Is A Joint Venture Of Central Government And A Private Company And Is Engaged In The Business Of Distribution Of Electricity In Chennai. The Central Government Holds 51%
Shares Of The Company. The Company Is Acknowledged For Its Consumer-Friendly Practices. Initially It Was Completely Owned By The Government And Was Running Into Significant Losses
But After The Joint Venture, The Aggregate Technical And Commercial Losses Of The Company Showed A Record Decline. The Operations Of The Company Have Improved Significantly As
Claimed By The Management Of The Company. The C&Ag Wants To Conduct The Performance Audit Of One Of The Departments Of The Company Through A Subordinate Office Of Indian
Audit And Accounts Department. For This Purpose, The Audit Programme Has Also Been Finalized And The Accountant General Has Intimated The Company That The Audit Would Start
Within A Day
A. The notice for such type of audit should give reasonable time to the management to prepare themselves. Further it should not be a detailed audit requiring significant time of the
4 company.
B. The C&AG may conduct such type of audits in respect of NOP Ltd which would get covered in this criteria, however, the notice for conducting such type of audit should give reasonable
time to the management to prepare themselves.
C. In case of a joint venture such type of audit cannot be performed as per the Companies Act, 2013. The company should write to the Registrar of Companies in respect of this matter and
till that time no audit can be started.
D. In case of a joint venture such type of audit cannot be performed as per the Companies Act, 2013. Further wherever this is applicable that is only for a small period of time. The company
should write to the Ministry of Corporate Affairs in respect of this matter
Ans. B
Cgn Ltd Is A Large Company Engaged In The Business Of Oil Exploration In India. The Tamil Nadu Government And The Central Government Hold 37% And 20% Respectively Of The Paid-Up
Share Capital Of This Company. The C&Ag Appointed The Statutory Auditors Of This Company As Per Requirements Of The Companies Act 2013. The Company Had A Concern Regarding This
Appointment Because Company Wanted To Appoint Another Auditors As Per Their Assessment, However, Considering The Legal Hassles Which Would Have Got Involved, The Company
Decided To Go Ahead With This. The Audit Of The Financial Statement For The Year Ended 31 March 2020 Got Completed By The Auditors Appointed By The C&Ag. Subsequent To This, The
C&Ag Also Issued An Order To Conduct Test Audit Of The Accounts Of The Company Which Was Objected By The Management Of The Company. The Management Objected Saying That The
Complete Set Of Financial Statements Have Been Audited By Auditors Appointed By The C&Ag And Hence This Order Is Not Acceptable Because This Would Lead To Duplication Of Work.
Moreover, The Management Has Also Written To The C&Ag That For The Next Financial Year, The Existing Auditors Should Either Resign So That The Management May Bring In Their Own
Auditors Or The C&Ag Should Have Faith In The Work Of The Auditors Appointed By Them. Please Suggest How To Resolve This Matter. (Icai-Mcqs Booklet)
5
A. The managements stand is not correct. The C&AG may order test audit as per the requirements of the Companies Act 2013.
B. The managements stand is not correct. The C&AG may order test audit as per the requirements of the Indian Penal Code.
C. The management is correct and in this situation they get the right to appoint another auditor considering the fact that the C&AG has lost faith in the work of auditors appointed by them.
D. Such type of matters should be taken to arbitration as per the requirements of the Arbitration Act.
Ans. A
Setir Ltd Is A Company In Which 59% Of The Paid Up Share Capital Is Held By Punjab Government. The Company Is Engaged In The Business Of Providing Consultancy Services In Relation To
Construction Projects. The Punjab Government Is Also Planning To Induct Funds In The Company In Future, If Required. Nocri Ltd Is A Company Controlled By Setir Ltd. The Business Of Nocri
Ltd Is Construction And Has An Annual Turnover Of Inr 2500 Crore Approx. The Audit Of The Financial Statements Of Nocri Ltd For The Financial Year Ended 31 March 2020 Got Completed
But Nocri Ltd Observed That During The Course Of Audit, There Was Lot Of Intervention Of Comptroller & Auditor General Of India, Wherein C&Ag Was Giving Directions To The Auditors On
The Manner In Which Audit Should Be Conducted In Respect Of Certain Areas. Further, It Also Received Comments From C&Ag On The Audit Report Of The Auditors. Nocri Ltd Is Seeking
Legal Opinion To Go Against C&Ag So That They Can Avoid Unnecessary Interference Of C&Ag And Is Also Looking To Have New Auditors Appointed By Nocri Ltd With Whom They Will Have
An Engagement Letter With The Terms That Those Auditors Don
6 A. The stand of the existing auditors should have been better i.e. not to accept any interference of C&AG.
B. Management could have planned the audit work better by including the same terms in engagement letter with existing auditors instead of appointing another auditors.
C. C&AG involvement could have been accepted if this was the audit of Setir Ltd but not in case of Nocri Ltd and hence Nocri Ltd should also reach out to its parent company to get this
resolved.
D. Stand of Nocri Ltd is wrong as the C&AG may get involved in the audit of Nocri Ltd.
Ans. D
Aj Petroleum & Refining Ltd Is A Maharatna Central Psu In India Having Its Registered Office In Uttaranchal. It Is Engaged In The Business Of Oil Refining, Pipeline Transportation &
Marketing, Exploration & Production Of Crude Oil & Gas, Petrochemicals, Gas Marketing And Other Downstream Operations. The Psu Has Global Aspirations For Which Its Mgmt Is Working
On Various Plans/ Prog. So That The Same Can Be Achieved In Future. It Is Also Planning To Pursue Diverse Business Interests By Setting Up Of Various Joint Ventures With Reputed Business
Partners From India And Abroad To Explore Global Opportunities. Considering These Objectives And Other Factors, The C&Ag Directed The Performance Audit In Respect Of Its Certain
Activities/ Functions Which Has Been In Progress. Before Starting The Audit, The Detailed Scope And Composition Of Audit Team Was Shared With The Mgmt Of The Co. And Tentative
Timelines Were Also Given With Which The Management Was Fine. However, During The Course Of The Audit The Audit Team Changed Its Audit Programme To Achieve The Desired
Objectives Which Was Approved By The Competent Authority, However, The Management Was Not Happy With Those Changes. The Management Wants The Audit Team To Conclude The
Audit With The Same Scope As This Is A Special Type Of Audit Wherein Such Flexibility Cannot Be Accepted As That Would Defeat The Purpose Of The Law. However, The Audit Team Has A
Different View. Please Guide. (Icai-Mcqs Booklet)
7
A. Changes in audit programme in such type of audits are not acceptable as specified by the Companies Audit and Auditors Rules 2014.
B. Changes in audit programme in such type of audits are not acceptable as specified by the Companies Audit and Auditors Rules 2014 and the Ministry of Law.
C. Changes in audit programme in such type of audits can be accepted provided those are discussed with the management and approved by the Competent Authority.
D. The C&AG should get involved in this matter after taking permission from the Central Government and would require to change the audit team if the scope requires any changes as the
same should have been properly assessed by the audit team before commencing the audit.
Ans. C
Resources Have Been Used Economically And Acquired In Due Time,

8 In Appropriate Quantity And Quality, At The Best Price Is Objective Compliance Audit Comprehensive Audit Performance Audit Financial Audit. C
Of......... In Government Audit.
Audit team
9 Which One Is Not A Type Of Audit Conducted By C&Ag? Financial Audit Operational Audit Compliance Audit Management & B
Skill.
Supplementary Audit Under Section 143(6)(A) & Test Audit U/S 143(7) Company
10 President. Board of Directors. C&AG. C
Of Companies Secretary.
The Statutory Auditor Of A Government Company Submits His Report The BODs of the The company
11 The C & AG The Legislature B
To.............. company secretary
As Per C & Ag Act, 1971 The Tenure Of The Comptroller And Auditor
12 Four five six seven C
General Is ..... Years.
Re-
appropriations
Examine Reports & Moneys were distributed Expenditure was have been made
13 Public Account Committee Satisfy Itself On Following Matter Except. A
accounts legally. authorized. accordance with
the provision
made.
Committee on
Parliament And State Legislature Have For The Purpose Of Public Account
14 Audit Committee. Estimate Committee. Public A
Commercial Audit Constituted Specialized Committee Except. Committee.
Undertaking.
To consider To obtain an
Abg & Co., A Chartered Accountant Firm Has Been Appointed By C &
significance and the understanding of the To consider
Ag For Performance Audit Of A Sugar Industry. What Factors Should
15 need of potential program to be audited management All of the above D
Be Considered By Abg & Co., While Planning A Performance Audit Of
users of the audit Parliament/ State controls.
Sugar Industry?
report. legislative.
Audit Report Of The C&Ag Relating To The Accounts Of The Central Parliament/
16 President. Governor. President/Governor. C
/State Government Should Be Submitted To. State legislative.
Who Appoint Comptroller & Auditor General Of India Under Article 2/3 majority of both the Finance
17 Governor. President. C
149? house of parliament. Minister.
Departmentally
Life Insurance Deemed Government Section 8
18 Which Organisation Does Not Gets Covered Under Psus? Managed D
Corporation. Companies. Companies
undertakings.
19 CAG is a Person / Post Institute Department A
Click to view the case study for question 20-24
Performance
audit is an
Performance audit is
Performance audits attestation
Performance audits and a direct reporting
and compliance engagement
compliance audits are engagement whereas
20 PSU engagements are generally attestation engagements or direct audits are generally whereas B
generally direct reporting compliance audit is an
reporting engagements. Which of the following statements is correct attestation compliance audit
engagements. attestation
in this regard? engagements. is a direct
engagement.
reporting
engagement.
Considering nature of audit finding described at para [D] of case Compliance
21 Propriety audit. Performance audit. Financial audit. B
concerning delay in completion of work of thermal power plant, the audit.
said audit finding is likely to fall in domain of:
The statutory audit
of above PSU is to
be conducted by a The statutory
firm of auditors audit of above
The statutory audit of
appointed by PSU is to be
above PSU is to be
shareholders in conducted by a
conducted by a firm
AGM. C&AG cannot The statutory audit of firm of auditors
of auditors appointed
22 As regards listed PSU described in para [C] of case, which of the give directions to above PSU is to be appointed by C
by C&AG. Further,
following statements is most appropriate? such firm of conducted by C&AG. shareholders in
C&AG can give
auditors. However, AGM. However,
directions to the firm
its office is C&AG can give
of auditors.
empowered to directions to the
conduct a firm of auditors.
supplementary
audit.
Comprehensive
23 Considering the description stated in para [B] of case, the above audit Compliance audit. Performance audit. Propriety audit. A
audit.
finding is likely to fall in which areas?
Based on description provided at para [A] of case, which Estimates Public Accounts Committee on Public Committee on
24 B
Parliamentary financial committee is likely to examine above report Committee. Committee. Undertakings. Commerce.
of C&AG and make its recommendations?
L12 NBFC Ch14

Not Accepting
Accepting deposit Accepting deposit and
Not Accepting deposit and deposit and asset
1 NBFC-ND means NBFC and asset size of asset size of <500 D
asset size of >=500 Crore size of <500
>=500 Crore Crore
Crore
Principal Business For The Purpose Is Defined As An Aggregate Of

Financing Real Physical Assets Supporting Economic Activity And
2 0.85 0.75 0.6 0.5 D
Income Arising There From Is Not Less Than.... Of Its Total Assets And
Total Income Respectively.
L14 NBFC Ch14B
If a bank is required to maintain 5% CRR logically it should be on the

1 DTL DL only A
balance of
2 IC check mandatory for auditor of Companies? Yes Recommendatory Optional for auditor A
Yes, recommended but

3 Whether Statutory auditor is required to check IC in case of Banks? Yes, mandatorily No A
not mandated
4 CBI a nationalised Bank - Auditor to be appointed by CAG RBI BoD of Bank BoD + RBi BoD+CAG D
All of them
5 Which of the following is not a Nationalised Bank? SBI PNB BoB Boi are A
nationalised
C&AG of India in
Shareholder in Concerned Bank acting consultation with
6 AUDITOR OF STATE BANK OF INDIA APPOINTED BY? Reserve Bank of India. D
AGM. through its Board. Central
Government.
C&AG of India in
Shareholder in Concerned Bank acting consultation with
7 AUDITOR OF NATIONALIZED BANK APPOINTED BY? Reserve Bank of India. B
AGM. through its Board. Central
Government.
L15 Bank Audit CH-14A
Recovery / Security (Secured /

1 Npa Classification Is Based On Record Of Both A
repayment unsecured)
+90days of
Crop Loan Taken For Wheat Plantation In Rabi Season (Oct To May)
May23/May
2 On 01 Oct 2022. If Loan Is Not Repaid By End Of Current Crop Seaosn May-23 May-24 Sep-23 May-25 B
24/Sep23/M
May2023 Then When Will Be Account Treated As Npa?
ay25
Loan Given To Another Company Which Has Given A Guaranteee Of

3 Secured Advance Unsecured Advance B
Its Bank Against The Loan This Loan Given Classified As
State Level
Ensure That Npa Norms Have Been Applied In Accordance With The Division Level District Level Bankers Reserve Bank Special
4 Bankers D
Crop Season Determined By The ........... In Each State. Bankers Committee Committee Committee
Committee
If The Outstanding Balance Remains Continuously In Excess Of The Non-Performing Held for
5 Performing asset. Out of order. C
Sanctioned Limit Drawing Power An Account Should Be Treated As? asset. maturity.
Interest
Interest installment Interest installment is
Interest installment is due installment is
is due and remains due and remains
6 A Non-Performing Investment Is One Where? and remains unpaid for due and remains B
unpaid for more unpaid for more than
more than 90 days. unpaid for more
than 60 days. 120 days.
than 180 days.
L16 Bank Audit CH-14A
Bank Gave An Advance Which Was Classified As Npa And Had

Outstanding Principal Of 60 Crores And Interest Overdue Of 15
1 Crores. The Security Was Attached And Acquired Having Nrv Of 85 85 75 60 48 D
Crores. At What Value The Security Will Be Recognised In The Books.
Note, Pbd Made On Such Loans Was 12 Crores?
The Advances Bank Ltd. Has Sanctioned Overdraft Limit Of 44 Crores As per bank norms
To Asg Ltd. On The Working Capital Of The Company As On 31St the drawing power
March 2019. As Per Bank Norms The Drawing Power In The Overdraft Classify the need to be
Account Need To Be Reviewed On Quarterly Basis As Per The Audited borrowers account determined on the
Instruct the bank to You should give a
Stock Statement Of The Company. As A Central Statutory Auditor For as NPA as the basis of stock
obtain the audited stock qualificatory
The Year 2020-21 While Verifying The Advances For The Year Ending borrowers financial statement and it was
2 statement for both the note in the audit C
31St March 2021 You Noticed That The Bank Has Not Obtained The position cannot be more than three
quarters and review the report as per
Stock Statement Of Asg Ltd. For The Two Quarters Ending 31St determined due to months old as on 31st
credit limit accordingly. SA700.
December 2020 And 31St March 2021 And No Provision Of Npa Has non-submission of March 2021 so the
Been Made For This Account In The Financial Statements For The Year stock statement. outstanding in the
2020-21. What Will Be Your Decision As A Central Statutory Auditor? account will be
(Rtp-May-2019) (Mtp-May-2020) deemed as irregular.
3 Bank Should Decide The Category Of The Investment At The Time Of? Acquisition. Classification. Maturity. Sale. A
Banks Are Required To Classify Their Entire Investments Portfolio Into

4 2 categories. 3 categories. 4 categories. 5 categories. B
How Many Categories?
Auditor Should Examine Whether The Shifting Of Investment From Central Board of Directors of
5 Reserve Bank of India. C&AG. C
Available For Sale To Held For Maturity Is Duly Approved By? Government. Bank.
The Rbi Has Advised That The Banks Before Appointing The Statutory
6 Indebtedness. Solvency. Independence. All of the above. A
Branch Or Central Auditor Should Obtain A Declaration Of-----------
The Lfar And The Relative Agenda Note Together With The Board'S
7 Views Or Directions Is Submitted To Rbi Within -------------- Of 15 days 30 days 45 days 60 days D
Submission Of Lfar By Statutory Auditors.
The Long Form Audit Report Is To Be Given By Statutory Branch

Auditors As Well As Statutory Central Auditors. The Lfar For Branch
Auditors Is In Form Of Questionnaire Where Observations comments Statutory Central
8 Reserve Bank of India. Concerned Bank. C&AG. A
Have To Be Provided On Range Of Matters Including Cash Balance Auditors.
With Banks Investments Advances Deposits Etc. These Are Submitted
By The Statutory Branch Auditors To:
L17 Bank Audit Group Audits
Ca Firm Is Doing Concurrent Audit Of Mumbai Branch Of Sbi Adn

1 Y N B
Appointed As Sba Of Khandala Branch Of Sbi, Can He Accept?
Mandatorily the Can be any qualified CA as Can be auditor of

2 Auditor For Cons FS Is auditor of SFS of company wishes to Parent or any of the A
Parent Company appoint subsidiaries
Option to have
N, single report for SFS combined single
3 Whether Separate Audit Report (Ar) Is Required For CFS? Y A
and CFS report or separate
report
Company Having Only A JV / Associate But No Subsidairy Whether Is

4 Y N A
Also Required To Mandatorily Prepare And Present CFS?
SFS mandatory,
5 Company Having A Subsidiary Is Required To Prepare CFS only CFS and SFS both SFS only B
CFS Optional
XYS Bank Had An Npa Account Of Ms Glenpark Showing Recoverable Return 1 lakh to
Credit the excess of Credit the excess of 1
Amount Of 55 Lakh In The Books. It Sold The Npa For 56 Lakh. Please Let the amount remain in the party
6 1 lakh to profit on lakh to Provision for C
Select As To Which Of The Following Options Is The Correct Glenpark account. purchasing the
sale of assets. loss on sale of NPAs.
Accounting: (Icai-Mcqs Booklet) NPA.
Your Firm Has Been Appointed Statutory Auditor By A Nationalised Bank For The Year2019-20. Your Senior Advised You To Check All The Standard Assets Shown In The Balance Sheet As On
31St March 2020. While Verifying You Observed That One Of The Accounts Was Regularised On 28Th March 2020 For Which The Interest And Instalment Amount Was Overdue From The
Quarter Ending 30Th September 2019. The Account Was Regularised After The Repayment Of Overdue Interest And Instalment Amounts Was Done On 26Th March 2020. Only The Last Day
Of The Financial Year Was Reckoned As The Date Of Account Becoming Npa By The Bank. As A Statutory Auditor Will You Agree With The Banks Policy? (Mtp-May-2019 Icai-Mcqs Booklet)
A. a. As the interest charged in the account was overdue for more than 90 days from the end of quarter it should be classified as NPA and should be considered as sub-standard asset for the
balance sheet as on 31st March 2020.
7
B. As the overdue interest and instalment amount was paid before the balance sheet date there is no reason to classify the account as NPA.
C. The auditor should not agree with the Banks policy to regularise the account before balance sheet date as overdue interest indicates more than normal risk attached to the business.
D. Bank can regularise the account before balance sheet date but should ensure that the amount has been paid through genuine resources and not by sanction of additional facilities and
the account remains in order subsequently.
Ans. D
Auditor should
It is not necessary
verify that PMS
to maintain As per RBI guidelines PMS
funds are not
separate records for investments need to be
PFS Bank Was Engaged In The Business Of Providing Portfolio utilised for
PMS clients from audited separately by the
Management Services To Its Customers For Which It Took Prior The auditor can give a lending inter-
Banks own external auditors and the
Approval From Rbi. Your Firm Has Been Appointed As The Statutory qualified opinion in bank deposits or
investments so the auditors are required to
Auditors Of The Banks Financial Statements For The Year 2019-20. his audit report on deposits to
auditor can verify give a certificate
Your Senior Has Instructed You To Verify The Transactions Of the financial corporate bodies
8 the PMS separately for the same. B
Portfolio Management Services (Pms). While Verifying The statements of the and bills re-
transactions as part So in the above case the
Transactions You Noticed That The Bank Has Not Prepared Separate Bank and report the discounting only.
of investment auditor should not verify
Record For Pms Transactions From The Banks Own Investments. As A matter in special So whether the
verification for the PMS transactions till
Statutory Auditor What Will Be Your Decision For Verification Of Pms purpose certificate. PMS transactions
Banks financial the Bank segregates the
Transactions? (Mtp-Nov-2019 Icai-Mcqs Booklet) are recorded
statements and transactions from its own
separately or not
submit the audit investments.
will not matter
report accordingly.
for the auditor.
Ensure that all
the fixed deposit
receipts against
which the loan
has been
Ensure that all the fixed
You Are The Internal Auditor Of Fcd Bank Limited For The Year 2019- sanctioned are
Ensure that all the deposit receipts against
20 And The Bank Maintains All The Data On Computer. You Are discharged in
fixed deposit which the loan has been Discuss the process
Instructed By Your Senior To Verify The Loan Against Fixed Deposits favour of bank
receipts are sanctioned are discharged followed for lien
9 Of The Navi Mumbai Branch. As Per The Scope Of Audit You Need To check that the B
attached along with in favour of bank and marking with the
Ensure That Proper Lien Has Been Marked On All The Fixed Deposits lien is marked in
the approved loan check that the lien is branch manager.
Against Which Loan Has Been Issued. Which Of The Following the computer
documents. marked in the computer
Procedure You Will Follow For The Same (Icai-Mcqs Booklet) software and the
software.
fixed deposit
should be kept
separately with
the branch
manager.
Cash Credits Overdrafts Advances in India '-

A Bank Has Some Non-Interest-Bearing Staff Advances. In The Balance Term loans under Others under
10 and Loans Repayable on Others under D
Sheet These Should Be Presented Under: (Mtp-May-2021) Advances. Other assets.
Demand under Advances. Advances Schedule.
Before Submission Of The Report The Auditor Should Discuss The
11 Branch manager. Concerned officer. RBI. Both a and b. D
Important Issue With?
Audit Committee
Shareholders in C&AG of India in Discretion of
12 Remuneration Of Concurrent Auditor Fixed By Whom? of the Board of D
AGM Consultation with CG Individual Bank
Directors
C&AG of India in
The Option To Consider Whether Concurrent Audit Should Be Done Shareholder in Discretion of individual consultation with
13 Reserve Bank of India. B
By Banks Own Staff Or External Auditors Left To The? AGM. banks. Central
Government.
Risk Sensitive Areas Identified By Them As Per Their Specific Business Audit Committee of
State Level Bankers Shareholders
14 Models Are Covered Under Concurrent Audit. The Detailed Scope Of the Board of Reserve Bank of India A
Committee Committee
The Concurrent Audit May Be Determined And Approved By Directors
The Scope Of Work To Be Entrusted To Concurrent Auditors Coverage
State Level Bankers Audit Committee of the Shareholders
15 Of Businessbranches Etc. Is Left To The Discretion Of The Head Of Reserve Bank of India B
Committee Board of Directors Committee
Internal Audit Of Banks With The Due Prior Approval Of The:
Dena Bank A Public Sector Bank It Has Three Department Which Are
16 Dealing With Treasure Function Fund Management And Handling Concurrent audit Internal audit. Quarterly audit. Statutory audit A
Investment Portfolio Which Kind Of Audit It Need To Be Conduct?
17 Concurrent Audit Is Kin To? Internal audit. Financial audit. Quarterly audit. Statutory audit. A
It Is A Verification Of Transactions Or Activities Of An Organisation As

18 Internal audit. Concurrent audit. Quarterly audit. Statutory audit. B
The Transaction Or Activity Takes Place?
Central Audit And Inspection Department In Banks Is A Combination

Chief Financial
19 Of Centralized Function With Some Level Of Decentralization Which Is Chief Executive Officer Chief Audit Executive Statutory audit. C
Officer.
Usually Headed By A -------------
In Course Of Audit Of Dena Bank As At 31-3-2018 You Observe That In

A Particular Account There Was No Recovery In The Past 18 Months. Banks intention is Banks intention is correct Banks intention is
Auditor needs to
The Bank Has Not Applied The Npa Norms As Well Income correct for not for not applying provision incorrect for not
take
20 Recognition Norms To A Particular Account. When Queried The Bank applying provision norms. But no exemption applying provision B
management
Management Replied That This Account Was Guaranteed By Central norms & income for income recognition norms & income
representation.
Government And Hence These Norms Were Not Applicable Please recognition norms. norms. recognition norms.
Respond.
A Foreign Bank In Another Country Maintain Stock Of Indian Rupees

Foreign currency
21 With Their Indian Branches Correspondents Such Indian Rupees Vostro account. Nostro account. Loro account A
account.
Accounts Are Designated By
Banks Maintain Stock Of Foreign Currencies In The Form Of Bank

Foreign currency
22 Accounts With Their Overseas Branches Correspondents Such Vostro account. Nostro account. Loro account B
account.
Foraging Currency Accounts Designated By
What Isare The Exceptions To The General Rule Of Treating Advances Temporary Facility backed by
23 Natural calamities. All of the above. D
As Nonperforming Assets (Npas)? deficiencies. Central Government.
Capital Consist Mainly Of Shares Capital And Disclosed Reserve And

24 Its Banks Highest Quality Capital Because Its Fully Available To Cover Tier-I capital. Tier-II capital. Hybrid debt capital. Reserve capital. A
Losses?
Only if interest rates
As decided by
Interest Income For Non-Performing Investment Should Be Booked on these instruments
25 Cash basis. Accrual Basis. Board of A
On? are pre-determined
directors.
then accrual basis.
Only if interest rates

As decided by
Bank May Book Interest Income From All Other Performing on these instruments
26 Cash basis. Accrual Basis. Board of C
Investment On? are pre-determined
directors.
then accrual basis.
Only if interest
Bank May Book Income On Securities Of Corporate Bodiespublic
serviced regularly and As decided by
Sector Undertaking In Respect Of Which The Payment Of Interest And
27 Cash basis. Accrual Basis. such interest in not in Board of C
Repayment Of Principal Have Been Guaranteed By Central
arrears then accrual directors.
Government Or State Government?
basis.
The Report Of The Statutory Auditors In Relation To Compliance With Shareholders and
28 Top Management and RBI. C&AG and CG. C&AG and RBI. B
Slr Requirement To Be Sent? RBI
4 odd date in
12 odd date in 8 odd date in
10 odd date in different different month
The Reserve Bank Of India Requires Statutory Central Auditor Of different month of different month of
29 month of financial year of financial year A
Banks To Verify The Compliance With Slr Requirements Of? financial year not financial year not
not being Saturday. not being
being Friday. being Tuesday.
Monday.
Person as
In Relation To Internal Control With Regards To Cash Cash Should Be Joint custody of two
30 Branch Manager Cashier. specified by C
Kept Inby. responsible officers.
Board.
Bank Required Implementing & Maintaining Internal Control System Maintain good Meet regulatory
31 Mitigate risks. All of the above. D
To? governance. requirement.
Click to view the Audit of Bank case study for question 32-36
The matter
The matter should not be
The matter should The matter should be concerns branch
reported as it is part of
be reported even reported only for its management’s
As Regards Matter Of Levying Of Foreclosure Charges Described In duties of concurrent
32 though it would disregard of Code decision. It does A
Case Scenario, What Is Appropriate Course Of Action For Concurrent auditor to safeguard
lead to revenue loss without highlighting not fall in
Auditor? branch’s revenue
for branch. revenue impact. purview of
interests.
concurrent audit.
Although lending
has been made
within Chief
Manager’s
Lending has been powers, branch
made within Chief should have
Such a lending increases Manager’s powers. It reported to
Such a lending lacks
credit risk for branch and does not fall in higher
Which Of The Following Statements Is Most Appropriate Regarding diversity and needs
33 needs immediate concurrent auditor’s authorities C
Sanction Of Fresh Advances To Borrowers In The Same Industry In A to be reported
attention of higher domain to question flagging sanction
Month From Concurrent Auditor’S Perspective? without fail.
authorities of bank. wisdom of lending of fresh advances
decision conforming to same industry.
to bank norms. Only this aspect
should be
reported in
concurrent
auditor’s report.
The said
instances cannot
The said instances can
The said instances can be be reported as
be reported in
The said instances reported in monthly these fall in
Click To View The Audit Of Bank Case Scenario monthly concurrent
cannot be reported concurrent audit report. powers of Chief
Which Of The Following Statements Is Most Appropriate As Regards audit report.
34 as these fall in No discussion is necessary Manager and C
Reporting Of Matters Relating To Temporary Over Limits In Cash However, a discussion
powers of Chief with Chief Manager in this have been
Credit Accounts And Temporary Overdrafts In Current Accounts? is necessary with
Manager. respect to ensure sanctity adjusted and
Chief Manager in this
of report. paid before the
respect.
end of the
month.
Such guidelines
contain detailed
Such guidelines contain
requirements in
detailed requirements for
Such guidelines have respect of
banks to enable them to
The basic purpose a basic objective of customer
draw a 360- degree credit
of such guidelines is ensuring credit of acceptance
The Concurrent Auditor Wants To Ensure That Fresh Casa Accounts profile of the customers
35 to weed out Direct benefit policy, customer D
Opened In The Branch Are Kyc Compliant. Which Of The Following by monitoring of
duplicate customers transfers (DBT) in identification
Best Sums Up Scope Of Kyc Guidelines Prescribed By Rbi? transactions. Its primary
at the same branch. accounts of deserving procedures,
purpose is assisting banks
account holders. monitoring of
in making prudent credit
transactions and
decisions.
risk
management.
Verifying that
dormant
accounts at the
Verifying that Following up with branches ageing
dormant accounts account holders to more than 10
Examining authorisation
36 As Regards Dormant Deposit Accounts In The Branch, Which Of The are revived with ensure status of years have been C
for withdrawals
Following Is Not Part Of Duty Of Concurrent Auditor? appropriate accounts remains transferred to
authority active Deposit
Education and
Awareness Fund
(DEAF)
L18 Group Audits
Whether Parent auditor is responsible for audit of Component

1 Y N B
auditor (SFS)
he shud review wrt

no need to
Subsidiary auditor (a CA) was grossly negligent in his duties hence his yes he should yes he should review his significant
review of
2 AR on SFS of Subsidiary was not appropriate. Whether Parent's supervise Subsidiary work whether he has consolidation C
coordinate with
responsibility includes to review the work of Subsidiary's auditor? auditor obtained SAAE procedures and not
him
his overall work
3 S. 143(3) reporting CFS ki audit report mei bhi dena hogi? Y N A
A Ltd has 80% Stake in B Ltd and B Ltd has 60% stake in C Ltd,
4 Yes No, an Associate Neither
Whether C Ltd is Subsidiary of A Ltd?
Parent is non-Invest entity and Subsidiary is an Invest Entity, Whether

5 Y N A
Parent required to consolidate and present CFS
The intention of Saif

Ltd. is quite clear For the compliance of
that the control in provisions related to
Taimur Ltd. is consolidation of financial In any case Saif
Saif Ltd. Acquired 51% Shares Of Taimur Ltd. During The Year Ending temporary as the statements given under Ltd. is required
31-3-2016. During The Financial Year 2016-17 The 20% Shares Of former company section 129(3) of the to prepare
Taimur Ltd. Were Sold By Saif Ltd. Saif Ltd. While Preparing The disposed of the Companies Act 2013 Saif Both a and b need to consolidated
6 C
Financial Statements For The Year Ending 31-3-2016 And 31-3-2017 acquired shares in Ltd. is required to made consider. financial
Did Not Consider The Financial Statements Of Taimur Ltd. For the next year of its disclosures in the financial statement
Consolidation. As A Statutory Auditor How Would You Deal With It.? purchase. Therefore statements as per the otherwise modify
Saif Ltd. is not provisions provided in report.
required to prepare Schedule III to the
consolidated Companies Act 2013
financial statement
In Which Form The Company Shall Also Attach Along With Its
7 Financial Statement A Separate Statement Containing The Salient AOC-1. AOC-2. AOC-3. AOC-4. A
Features Of The Financial Statement Of Its Subsidiary Or Subsidiaries?
As per Sch III - D2 which of the following information wrt to S/JV/A is

8 Profits Dividends Net Assets OCI B
not required to be given? Share in
Not just in CFS in

Parent uses FIFO for inventory oof RM and Subs uses Wt Avg for Both to use FIFO unless SFS as well both
Both to Use FIOBoth
9 inventory of RM and both of them are in similar business. In ConFS Both to use FIFO impracticable for to use same set A
to use Wt Avg
whether Subsidiary of acconting
policy
Can use different

Parent uses SLM for depreciating office bulilding and Subs uses WDV P & S both to use
10 P & S both to use WDV method in CFS as well, C
for same in their SFS. In ConFS whether SLM
no need to harmonise
L19 Group Audits and Internal Audit
Click to view the Group Audit case study for question 01-05
Reporting of
details of
subsidiaries
A separate report
A separate report together with
under CARO, 2020 in
providing Clause by It would be sufficient if paragraph
respect of all
Clause reporting report under CARO,2020 numbers of
subsidiaries
under CARO,2020 is in respect of standalone reports under
incorporated in India
As Regards Reporting Under Reporting Caro,2020 In Respect Of required in respect financial statements is CARO, 2020 of
1 together is required. D
Consolidated Financial Statements, Which Of The Following Is In of specified matters supplemented with auditors of such
It should be annexed
Accordance With Requirements Of Law? pertaining to parent additional information in companies
with report under
and all subsidiaries respect of all subsidiaries incorporated in
CARO,2020 in respect
incorporated in incorporated in India. India containing
of standalone
India. qualifications or
financial statements.
adverse remarks
would serve the
purpose.
The auditor
should verify that
The auditor should income and
verify that income The auditor should expenses of
and expenses of verify that income subsidiary are
subsidiary are The auditor should verify and expenses of included in
included in that income and expenses subsidiary are consolidated
consolidated of subsidiary are included included in financial
financial statements in consolidated financial consolidated financial statements for
from the date it statements for the statements from the the complete
gains control of complete financial year date it gains control financial year
Which Of The Following Statements Is Most Appropriate Regarding subsidiary and and further such income of subsidiary and and further such
2 A
Consolidation Of Financial Statements Of A Subsidiary Acquired On further such income and expenses are based further such income income and
15.6.22? and expenses are on the amounts of the and expenses are expenses are
based on the assets and liabilities based on the amounts based on the
amounts of the recognized in of the assets and amounts of the
assets and liabilities consolidated financial liabilities recognized assets and
recognized in statements at the in consolidated liabilities
consolidated preceding reporting date. financial statements recognized in
financial statements at the preceding consolidated
at the acquisition reporting date. financial
date. statements at
the acquisition
date.
Goodwill and
adjustments
Goodwill represents
relating to
current period Goodwill represents
harmonizing
consolidation permanent
different
adjustments. consolidation
accounting
Adjustments Adjustments relating to adjustments.
policies being
relating to intra- goodwill, intra-group Adjustments relating
adopted by the
group indebtedness indebtedness and those to intra-group
parent and its
and those relating relating to harmonizing indebtedness and
subsidiaries
to harmonizing different accounting those relating to
3 Which Of The Following Statements Is Correct In Respect Of Goodwill represent C
different accounting policies being adopted by harmonizing different
And Other Matters Described In The Case Scenario? permanent
policies being parent and its subsidiaries accounting policies
consolidation
adopted by the represent current period being adopted by the
adjustments.
parent and its consolidation parent and its
Adjustments
subsidiaries adjustments. subsidiaries represent
relating to intra-
represent current-period
group
permanent consolidation
indebtedness
consolidation adjustments.
represent
adjustments.
current period
consolidation
The auditor should

insist for drawing
up of financial The auditor can
statements of accept management’s
The auditor
foreign subsidiary version. However, it is
should modify his
to 31St March,2023. his duty to verify
opinion by
What Should Be Auditor’S Proper Course Of Action Pursuant To The reason for The auditor can accept adjustments made for
4 quantifying the C
Situation Highlighted In Para [B] Relating To Financial Statements Of A impracticality is a management’s version. effects of significant
financial effects
Foreign Subsidiary? mere excuse. In transactions or events
of such an
case of failure to occurring between 1st
inconsistency.
redraw, he can January 2023 and 31st
modify his opinion March,2023.
in accordance with
SA 705.
The said disclosure is
The said disclosure not proper as
is not proper as The said disclosure is not percentages of
percentage of proper as percentage of consolidated revenue
consolidated other comprehensive from operations as
revenue from income along with well as other The said
Considering Disclosure Of Additional Information In Consolidated
5 operations along respective amount comprehensive disclosure is B
Financial Statements As Stated In Para (A) Of Case Study, Which Of
with respective pertaining to holding income along with proper.
The Following Statements Is Correct?
amount pertaining company and its their respective
to holding company subsidiaries is also amounts pertaining to
and its subsidiaries required. holding company and
is also required. its subsidiaries are
also required.
L20 Internal Audit
Click to view the Quality Control case study for question 01-05
The firm has an

effective system of The firm does not have SQC 1 is not SQC 1 is not
quality control effective system of quality applicable in the case. applicable in the
described in SQC 1. control described in SQC Audit engagement case. Audit
On your overall reading of the case study, which of the following
1 Audit engagement 1. Audit engagement has has not been engagement has D
statements appears to be true?
has also been also not been performed performed in been performed
performed in in accordance with SA accordance with SA in accordance
accordance with SA- 220. 220. with SA 220.
220.
Such are examples of

Such are examples Such are
clerical errors
of clerical errors examples of
encountered during Such are examples of
encountered during serious lapses on
Considering auditor’s reply regarding errors in data feeding entry by preparation of reports. serious lapses on part
preparation of part of auditor.
2 junior staff in relation to accounting standards, which of the following There is no effect on of auditor showing C
reports. There is no However, these
statements is proper? auditor’s opinion and non-compliance with
question of non- are not related
consequently question of SA 220.
compliance with SA to compliance
non-compliance with SA
220. with SA 220.
220 does not arise.
Engagement
Engagement quality
No contentious quality control
control review is
matter arose during review is
mandatory in such
Engagement quality the course of dependent upon
type of
control review is optional engagement. benchmarks
engagement. It was
Considering auditor’s point of view regarding engagement quality in such type of Therefore, question of established
3 not proper for C
control review, identify the most appropriate statement from below: - engagement. Therefore, not following SA 220 under SQC 1. If
auditor to bypass
question of not following does not arise in those bench
such review. He has
SA 220 does not arise. respect of marks are
violated mandatory
engagement quality satisfied, such a
requirement of SA
control review. review is
220.
necessary.
Assessing risks of
Since auditor has no
material statement
Although auditor has not record of how risk of
is a matter of
The auditor has reasoned that risk of material misstatement has been submitted record of how material Such a query,
professional
assessed to be low based upon his understanding of the company and risk of material misstatement was itself, is outside
4 judgment. It cannot A
it is a matter of professional judgment. Identify the most appropriate misstatement was arrived arrived at, it goes on the mandate of
be demanded from
statement from below in this regard. at, it does not affect to show non- authority.
him how his
compliance with SA 220. compliance with SA
judgment was
220.
arrived at.
Audit was, in
fact, planned as
evidenced by
auditor’s
Audit was, in fact, Since auditor has no submissions.
It has been contended by auditor that audit was properly planned. He Although auditor has no
planned as record of audit plan, it However. there is
has further stated that it was practically not feasible for firm of small record of audit plan, it
5 evidenced by goes on to show non- an exemption for B
size to prepare a detailed audit plan. Which of the following views is does not affect
auditor’s compliance with SA small CA firms
most appropriate in this regard? compliance with SA 220.
submissions. 220. doing away with
cumbersome
documentation
in relation to
audit plan.
L21 Quality Control
A firm with 10 partners, where 1 partner is doing an audit and wants

1 to seek opinion on a matter from a CS who is also a partner in the Y N A
firm can he do so?
A firm with 10 partners, is a prt of network and wants to seek opinion

2 Y N A
relating to audit from a network firm of can it do so?
A firm with 10 partners, where 1 partner is doing an audit and wants

3 to sseek opinion from other partner / consultation from other partner Y N A
of the same firm can he do so?
Audit of NBFC - Auditor KC Mehta & Co and Chirag Bakshi is the EP /

4 Senior partner involved in audit since beginning i.e. 1st agm to 10th Y N B
AGM as the firm was appointed twice for 5 years term, is this ok?
Listed company then auditor to be rotated after if the auditor is a

5 1 terms of 5AGMs 2 Term of 5 AGMs each no restriction B
firm
6 FS audited by the auditor under Tax Audit are GPFS SPFS A
Company
Audit & Tax
Company Audit & Tax Company Audit
Audit, SA
7 Which is example of external audit and on which SAs Apply Tax Audit, SA Apply Company Audit, SA Apply Audit, SA does not & Tax Audit, SA D
Apply to
Apply to both Apply to both
company
audit only
8 SAse applicable on External Audits Internal Audits Both A
The audit report has an unmodified opinion and EoM whether

9 Modified Report Unmodified Report A
treated as?
10 More difficult for auditor to comment? T&F T&C A
Company participated in a tender bid for acquisition of land, to make

a mall. Company was awarded the contract as it submitted the
11 Y N B
highest bid of 580 Crores. The next highest bid was for 300 Crores.
Whether auditor needs to report this?
Whether auditor is required to check compliance with child labour

12 Y,Y N,N N,Y Y,N C
act? and if child labour observed whether needs to report in his AR?
Something in
13 Auditor should Examine Investigate C
between
L22 Quality Control
Principal auditor is demanding a copy of ED of Compenent auditorr in Has to provide the Not mandatory, may
1 should neverprovidee B
this case the component auditor ED to PA provide if he wishes
Rim Private Ltd Is Engaged In The Business Of Manufacturing Of Steel

Having Annual Turnover Of Inr 10,000 Crores. The Company Is Very The auditors Both
Capital Intensive And Has Its Plants At Two Location- Mohali And requirements are management and
The view of the
Hosur. During The Year Ended 31 March, 2019, The Company Carried reasonable because auditors should
management seems
Out A Detailed Physical Verification Of Its Property, Plant And he carries duty in find a solution to
to be correct
Equipment And Also Reassessed Their Useful Lives By Engaging A Both the management respect of audit of this problem. The
because there is no
Consultant. The Consultant Submitted Its Report To The Management and auditors are not financial statements management
such requirement
On 21 April, 2019. The Statutory Auditors Of The Company Started correct. The auditor is not and by not getting may request the
that any consultant
Their Audit Work From May 2019 And When This Information Was supposed to receive the report directly from consultant to
of the company
Given To Them Regarding The Physical Verification And The report directly. Further, the consultant he send the report
should share his
2 Reassessment Of The Useful Lives Of Property, Plant And Equipment, the auditor needs to would not know to the auditor B
report directly with
The Auditors Told The Management That The Consultant Should Have review the work of the whether it belongs to directly now. On
the auditor. Also
Submitted Its Report To The Auditors Also Independently. Further, In consultant irrespective of that consultant or the basis of the
when the
The Absence Of This Direct Communication Of The Report Of The the fact whether he not. And now only same, the
consultant has
Consultant To The Auditors, The Audit Team Would Have To Review received the report because of this lack of auditor can avoid
already submitted a
The Work Of The Consultant Which Is Not Efficient But It Cannot Be directly or not. proper unnecessary
detailed report, no
Avoided Now. Management Did Not Agree With Both The Points Of communication the procedure
further review is
The Auditors That The Consultant Should Have Shared Report With auditor would have to related to review
required on that.
The Auditors Directly And That The Auditors Need To Review The review the work of of report of the
Work Of The Consultant. The Management Would Like To Have Your the consultant consultant.
Views On This Matter. (Icai-Mcqs Booklet)
AK & CO, A Firm Of Chartered Accountants, Have Been Operating For
The Last 6 Years. Due To The Quality Of Service Offered By The Firm,
It Has Made Its Name And Is Quite Renowned Especially In Southern
India Where Its Head Office Is Located. The Firm Has A Staff Size Of
240 Including Graduates, Chartered Accountants, Management
Consultants, Company Secretaries And Lawyers. The Firm Has 3 The engagement
Branches Other Than Head Office At Bangalore, Chennai And Pune. The engagement team team needs to Only the Partner
The engagement
The Firm Has Got Many Clients For Statutory Audit Over The Period should be independent maintain who is going to
team should consult
And Ensures That To Maintain The Quality Of Work, Proper Planning and hence cannot consult confidentiality and sign the audit
the previous years
3 Is Done By Each Team Before Starting Any Engagement. One Of The the previous years hence cannot consult report may A
engagement team
Engagement Team, Picked Up For Statutory Audit Of Sun Private Ltd, engagement team during the previous years consult the
during the course of
Was Involved In The Process Of Planning Of Audit For The Financial the course of their engagement team previous years
their planning.
Year Ended 31 March, 2019. The Audit For The Financial Year Ended planning. during the course of audit team.
31 March, 2018 Was Conducted By A Different Engagement Team. their planning.
However, The Engagement Team Of Sun Private Ltd For The Current
Year Has Got The Industry Experience. The Audit Team Is Confused
During The Planning Work And Would Like To Have Your Views On
Following Points. Please Advice By Answering One Of Them. (Icai-
Mcqs Booklet)
VKPL & Associates, A Firm Of Chartered Accountants, Have Been Operating For The Last 5 Years Having Its Office In Gurgaon. The Firm Has Staff Of Around 25 Persons With 3 Partners. The
Firm Has Been Offering Statutory Audit, Risk Advisory And Tax Services To Its Various Clients. The Major Work Of The Firm Is For Taxation Services. The Audit Partners Also Discussed That
The Firm Needs To Work Significantly To Improve The Quality Of The Services They Offer And That Would Also Help The Firm To Grown Its Business. Considering This Objective, The Firm
Started Training Programmes For The Staff Which Were Made Mandatory To Be Attended. During One Of The Training Programmes On Quality, A Topic Was Discussed Regarding The
Information That Should Be Obtained By The Firm Before Accepting An Engagement With A New Client, When Deciding Whether To Continue An Existing Engagement, And When
Considering Acceptance Of A New Engagement With An Existing Client. It Was Explained That The Following Points May Assist The Engagement Partner In Determining Whether The
Conclusions Reached Regarding The Acceptance And Continuance Of Client Relationships And Audit Engagements Are Appropriate (As Per Sa 220): (I) The Integrity Of The Principal Owners,
Key Management And Those Charged With Governance Of The Entity; (Ii) The Qualification Of All The Employees Of The Entity; (Iii) Whether The Engagement Team Is Competent To Perform
The Audit Engagement And Has The Necessary Capabilities, Including Time And Resources; (Iv) The Remuneration Offered By The Entity To Its Various Consultants; (V) Whether The Firm And
The Engagement Team Can Comply With Relevant Ethical Requirements; And (Vi) Significant Matters That Have Arisen During The Current Or Previous Audit Engagement, And Their
Implications For Continuing The Relationship. We Would Like To Understand From You Which Of The Above Mentioned Points Are Relevant For The Topic Under Discussion Or Not? (Rtp-Nov-
4
2019, Icai-Mcqs Booklet)
a. i, ii, iv and v.
b. ii, iv, v and vi.
c. iii, iv, v and vi.
d. i, iii, v and vi
Ans. D
.
Pmp Ltd Is An Associate Of Pmp Inc, A Company Based In Kuwait. Pmp Ltd Is Listed In India Having Its Corporate Office At Assam. The Companys Operations Have Remained Stable Over The
Years And The Management Is Looking To Expand The Operations For Which The Management Is Considering Different Business Ventures. The Companys Auditors Issued Clean Audit Report
On The Audit Of The Financial Statements For The Year Ended 31 March 2019. For The Financial Year Ended 31 March 2020, The Auditors Made Some Changes In Their Audit Team. While
The Audit Partner Remained The Same, The Field Incharge Has Been Replaced, As The Field Incharge Who Was Engaged In The Audit Of The Financial Statements For The Year Ended 31
March 2019 Has Left The Firm. The Audit Team Has A New Person As External Quality Control Reviewer (Eqcr) Who Has Specialized Knowledge Of The Industry In Which The Company Is
Operating. Eqcr Has Been Employed With The Firm For Over 2.5 Years And Is Yet To Clear His Ca (Chartered Accountancy) Final Exams. The Changes Were Made On The Basis Of The
Consideration That The Firm Has Enough Experience Of Engagement With This Client. The Audit Team Commenced The Work For Audit Of The Year Ended 31 March 2020 After Detailed
Planning And It Was Observed That Eqcr Had Various Comments On Certain Matters Which Were Not Accepted By The Audit Partner. Audit Partner Had Better Understanding Of The Client
And After Assessing The Comments Of The Eqcr Did Not Find Those Relevant. The Audit Partner Without Concurrence Of The Eqcr Finalized The Audit And Issued The Audit Report. In The
Given Situation, Please Advise Which One Of The Following Is Correct? (Icai-Mcqs Booklet)
5
a. The changes in the audit team were not appropriate except for the field in-charge who had left the firm. EQCR should have been a member of the Institute of Chartered Accountants of
India (ICAI).
b. The audit partner did the right thing by ignoring the comments of EQCR as he is the final authority to decide on any matter and take decisions. Further EQCR was junior to the audit
partner.
c. The audit partner must discuss each and every comment of EQCR with the client and ensure that a proper disclosure in respect of those points should be made either in the financial
statements or the audit report.
d. EQCR had sufficient and appropriate experience. He should have been given the authority to objectively evaluate various matters, before the report is issued, the significant judgments
the engagement team made and the conclusions they reached in formulating the report. By ignoring the comments of the EQCR, audit partner took additional professional responsibility on
himself. By considering the comments of EQCR, he could have passed the responsibility to EQCR.
Ans. A
Leadership Relevant Ethical

6 Elements Of A System Of Quality Control Includes: Independence All of the above D
Responsibilities Requirement
Internal Culture Recognizing Quality Control Includes Compliances Professional Quality control policies of
7 Laws and Regulations All of the above D
With: Standards the firm
A high, but not

A high, and absolute, level A low, but absolute, A high and 100 %
8 Reasonable Assurance In The Context Of This SQC Means absolute, level of A
of assurance level of assurance assurance\
assurance
The firm comply

Personnel comply with
with relevant Reports issued are
Objectives Of SQC 1 Is To Establish & Maintain A System Of Quality relevant standards and
9 standards and appropriate in the All of the above B
Control To Provide Reasonable Assurance That: regulatory and legal
regulatory and legal circumstances
requirements,
requirements,
Behavior of
Information Which Assists The Auditor In Accepting And Continuing Integrity of principal Qualification of the
10 employees of the Size of the entity. B
Of Relationship With The Client As Per SA 220. owners. Auditor.
entity.
Comply with the generally Maintain public

A CA, While Performing An Audit, Strives To Achieve Independence In Reduce risk and Become independent
11 accepted standards of confidence in the D
Appearance In Order To liability. in fact.
field work profession.
Degree of skill Responsibility for

Which Of The Following Is Not Required By The Auditing Standards Observance of the Critical review of the audit
commonly possessed losses because of
12 That States That Due Professional Care Is To Be Exercised In The standards of field work performed at every D
by others in the errors of
Performance Of The Audit? work and reporting level of supervision
profession. judgment
It Involves Informing Assistants Of Their Responsibilities And The

13 Supervision Monitoring Directing Consultation C
Objectives Of The Procedures They Have To Perform:
Which Of The Following Is Not An Element Of Professional

14 Requirements As Prescribed By Quality Control Policies For An Audit Independence Integrity Confidentiality Prudence D
Firm?
The Firm Is To Be Staffed By Personnel Who Have Attained And

Maintained The Technical Standards And Professional Competence Professional
15 Skills and Competence Assignment Delegation B
Required To Enable Them To Fulfill Their Responsibilities With Due Requirements
Care Is The Objective Of What Quality Control Policy?
The Examination By Cas Of A Ca Firms Auditing Practices To Ascertain Quality control

16 Compliance audit Examination Peer review C
Compliance With Its Quality Control System By Icai Is: audit
Compliance with
A Basic Objective Of A Ca Firm Is To Provide Professional Services That generally
A system of peer Continuing professional A system of quality
17 Conform With Professional Standards. Reasonable Assurance Of accepted C
review. education. controls.
Achieving This Basic Objective Is Provided Through reporting
standards.
L23 Audit Principles and Resp SA 240
1 External confirmations from Related Parties will give reliable AE? Y N B
Balance confirmations from creditors where it is expected that

2 creditors are overstated in the books, would give relevant audit Y N B
evidence
Whether tax evasion leading to saving of taxes for the company is

3 Y N A
classifiable as a Fraud?
Moderate Degree of Low or No

4 Reasonable assurance means Absolute assurance High Degree of assurance B
assurance Assurance
5 SA 240 talks about misstatements arising from F E Both A
6 Misstatements in FS includes miststatements arising from Frauds Errors Both C
Tax Auditor audited the FS and submitted his unmodified opinion

report. HOwever it was later found that company maintained 2 sets
of books and only limited transaction were recorded in one set of
7 Y N B
book which was given to auditor for checking based on which opinion
was issued. With these given facts wether auditor is responsible not
detecting 2 sets of books
L24 SA 240 to 260
Click to view case study for question 01-05
Instances of
Instances of Instances of non- identified as well
identified non- Instances of suspected compliance with laws as suspected non-
Which of the following statements is most appropriate about compliance with non-compliance with laws and regulations finally compliance with
1 B
documentation of noncompliance with laws and regulations by an laws and and regulations need to determined by Courts laws and
auditor in context of SA 250? regulations need to be documented. of law need to be regulations need
be documented. documented. to be
documented.
He should obtain
further information to
He should obtain
evaluate the possible
further information He should
He must report the matter effect on financial
The auditor has observed non-compliance of law prohibiting to evaluate the express a
2 to concerned government statements. Besides, A
employment of child labour. Which is the most appropriate course of possible effect on modified opinion
department. he should evaluate
action for him to proceed in this matter? financial in audit report.
implications of non-
statements.
compliance for audit
risk assessment.
Only physical
Only inquiry of verification of
Sufficient company workability of
appropriate Physical verification of management such systems and
Which of the following statements most appropriately describes evidence needs to workability of such personnel and review review of
3 D
responsibilities of auditor in relation to compliance with state be obtained by systems is required from of correspondence correspondence
pollution control legislation and regulations? auditor to verify an auditor. with regulatory with regulatory
compliance. authorities are suffice authorities are
to verify compliance. suffice to verify
compliance.
The auditor
needs to give
reference to
Identified and assessed
The auditor needs discussion
risks of material
to document The auditor needs among
misstatement due to
reasons for arriving only to document engagement
fraud need to be
at conclusion that that no risk of team members
documented. Since no risk
It has been concluded by auditor that there is no risk of material there is no risk of material to document that
4 of material misstatement A
misstatement due to fraud related to revenue recognition. Which of material misstatement due to no risk of
due to fraud pertaining to
the following statements is most appropriate in this respect? misstatement due fraud relating to material
revenue recognition was
to fraud related to revenue recognition misstatement
identified, separate
revenue was identified. due to fraud
documentation in this
recognition. relating to
respect is not needed.
revenue
recognition was
identified.
Observing inventory Observing

More rigorous
counts at all Observing inventory inventory count
Considering description of disproportionate rise in inventory examination of
locations at same counts at all locations at at end of
5 quantities, which of the following is not likely to be an appropriate packed items during C
date by employing same date by employing reporting period
response to outlined assessed risk of material misstatement due to observing inventory
necessary necessary resources. to minimize risk
fraud? count process.
resources. of manipulation.
Can discussion of Audit plan wth the msgt or TCWG affect the
6 Y N
effectiveness of audit?
Responsibility of
management and auditor
Responsibility solely
7 Disclosures required in the FS as per AS / IndAS are to support management A
of the managemnt
in providing the requisite
disclosures
Trial Balance post

which we will audit FS itself, which are to be
8 Management is responsible to prepare andkeep ready B
and tehn FS to be audited the the auditor
prepared
Communicate matters in
9 If company MGT and TCWG are not different then SA 260 is NA SA 260 with MGT itself as B
MGT is also TCWG
L25 SA 260, 299 and 402
CAn USA give reference of using the work of SA for relying on Control
1 Y N B
risk assessment at SO in his unmodified opinion report
Whether in the AR where joint auditors are appointed and they issue
a common AR as all are in agreement, whether any Other Matter or
2 y, required n, no requirement in SA B
EOM para required explainig that the audit was conducted jointly and
a breif f their division and joint responsibilities?
Inidividual Plan for

3 Joint auditor should devise a Joint Audit Plan A
respective areas
While conducting joint audit if one comes to know about a matter

4 concerning the other Joint Auditor is he required to inform the other Y N optional A
auditor?
If Jai is not performin his audit procedures well is Veeru responsible

5 Y N B
to detect it?
Sholay Ltd audited by Jai and Veeru 2 CA firms appointed as Joint

Auditor.
6 They have divided the work, and applied there audit procedures in Y, mandatory no B
their own areas. Whether individual work should be reviewed by
other joint auditor?
1. Company Auditor and Branch Auditor
2. Auditor of Parent Co and Auditor of Subsidiary Co (FOr purpose of
7 1 2 Both None D
CFS)
Which of the above is considered as Joint Audit?
L27 Ch3 SA 620 540
By using AEx will there be any reduction in the responsibility of

1 No Yes A Bit A
auditor
Company has a pending litigation relating to Income tax liability, for

1 - Rely after 2 - Rely after
which AEx opinion is used. Whether auditor can simply rely on what Simply rely in both Rely only after evaluating
2 evaluating, 2 - Simply evaluating, 1 - B
AEx has opined or he need to evaluate his work then rely? What if cases in both cases
Reply Simply Reply
pending case was related to air pollution?
Any area involving

expertise in any Any area involving
3 Where can the work of AEx (Auditors Expert) be used? A
field other than Ac expertise in any field
and Auditing
If IA agrees can Stat auditor get some of his Audit procedures

4 y never A
executed / done by the IA
Yes but no division Yes with division of resp

5 Whether IA Reports and Work can be used by Independent Auditor No A
of resp subject to proper review
6 Scope of Internal Auditor (IA) and Independent Auditor is Same Different B
Branch auditor completed his audit 30-4-23

Company auditor report date is 20 May 2023
7 Subsequent Events SA 560 requires auditor to see SE if affecting FS PrincipalAUditor Branch Auditor Need not be checked A
under audit.
Who will check the SE of Branch from 01 May to 20 May 2023?
L28 Ch3 SA 540 520
NRV - Based on Value on

Company is dealing in Gold and has inventory of 1000 Kgs at year
NRV - Based on Date when the Inventory
1 end. As per AS 2 / IndAS 2 how will we compute the NRV and it B
Value on BS Date is expected to be sold i.e
expects to sell it after a month
after 1 month
Whether the company expects to realise its Trade Receivables within

2 Y N B
12 months of BS date is an AE under SA 540?
Significant Significant Accounting

3 Cos following IndAS are required to disclose Both None D
Accounting Polciies Estimates

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CA Final Audit In Class MCQs by CA Sarthak Jain

S.No Poll/Quiz A B C D E Correct Ans

CA SJ is doing job ITC limited in internal audit department. whether Deemed to be in

S.No Poll/Quiz A B C D E Correct Ans

A CA has opened up 10 offices in different parts of the country where

CA has opened another office in the same building on different floor

CA. Deepak all India rank CA rank holder chartered accountant

Yes, only if CAiP, else

9 CA. CS. dr pooja partner - kpmg she is a CAip whether guilty? Y N A

CA in service in TCS, files it returns of his peers, for a nominal fees,

A CA doing job in itc limited, internal audit department, conducts

A CA has been convicted for an offence of moral turpitude in which

S.No Poll/Quiz A B C D E Correct Ans

A CA advertised to rent out his property, in a newspaper, whether

CA rents out a commercial office space he owns through an agent and

CA is appointed as liquidator of kingfisher Calendar limited a firm

S.No Poll/Quiz A B C D E Correct Ans

Do not accept internal Can accept both

A CA organized his 50th birthday party and sent out invitations to

CA advertised in newpaper his office inaugration and invited all

A CAip sent a letter to all CAs in india seeking professional work, is he

S.No Poll/Quiz A B C D E Correct Ans

I have been appointed as a stock auditor a of a existing company,

We have been appointed as auditor of a branch of a

An entity appointed us as tax auditor for ay 23-24 and there was no

We have been appointed as investigator under CA in cy. py another

PY joint auditors a and b this year company appointed joint auditors b

Auditor appointed - y&co previous auditor - x & co y & co accepted,

CA inadvertently (erroneously) accepted a tax audit assignment . later

CAes cost optimization services one of its audit client, where he

We have been appointed as auditor in place of previous auditor x &

Auditor appointed - y&co previous auditor - x & co y & co accepted,

Previous auditor complaints of frauds in company the reason for his

Ppreus auditor in response to communication under clause 8,

Previous auditor of a sick unit complained of improper removal, CAn

S.No Poll/Quiz A B C D E Correct Ans

A CA is appointed as a ne director in a company where he is having Y with prior

CAip has accepted ned in company that is controlled by his wife,

S.No Poll/Quiz A B C D E Correct Ans

Whether Confidentiality will prohibit sharing of information in

A CA has 1% SH in a company can he accept appointment as auditor

CA Mukesh Ambani is a CAiP and is appointed as auditor by a

CA has been appointed to prepare cost sheets of a company where

S.No Poll/Quiz A B C D E Correct Ans

Wife complained to ICAI that she gave her practicing CA husband

Whether clause requires money of client to be kept in separate bank

CA has been given advance by the client to deposit advance tax on

Advance given to auditor for out of pocket expenses, whether to be

S.No Poll/Quiz A B C D E Correct Ans

Same CA is auditing FAST Education since last 17 years. FAST

Relative is a partner in a firm with 10% profit share, can CA do its

AB&Co CA firm audited by CA. X (partner in XY & Co) XY & Co CA firm

S.No Poll/Quiz A B C D E Correct Ans

1 CAG how many 1 for India 1 for every State Both A

IN CASE OF PSU, DIRECT REPORTING ENGAGEMENT DOES NOT Comprehensive

S.No Poll/Quiz A B C D E Correct Ans

You Have Been Given An Assignment Of Audit Of It Department Of A

Resources Have Been Used Economically And Acquired In Due Time,