CA Inter Auditing and Ethics MTP January 2025: Question Paper and Solutions

How to Prepare for CA Intermediate Auditing and Ethics

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Question directory and available solutions

49 indexed questions. Open a question to read its full statement and available answer.

1. Oval Services Ltd. appointed Rupa & Associates as the auditors for the financial year 2023-2024. The auditors believe that an audit program is…
2. Shreyansh, a Chartered Accountancy student, is part of an engagement team conducting audit of the Coimbatore branch of XYZ Bank under the guidance…
3. M/s MCP Associates are having 3 partners namely CA Mahavir, CA Chandana and CA Prabha. CA Mahavir is about to conclude audit of a company. During…
4. CA Kamal, a partner at KPS & Co., is conducting an audit of Ridhi Ltd., a manufacturing company. During the audit it was found that KPS & Co.…
5. The auditor is evaluating the most appropriate method to assess the internal control system of the company. The selected method should be widely…
6. Gori told her friends that she had read a news report about how a company had misled its auditors by producing some fabricated documents. Which of…
7. ABC Pvt. Ltd., a manufacturing company, is facing significant financial difficulties due to downfall in market and increase in cost of production.…
8. CA Rishi is appointed as an auditor of AIR Ltd. for the financial year ending on March 31, 2024. During the audit, he observed that the company's…
9. CA Tanuj, the auditor of Kiran Ltd., completed the audit work and issued the auditor's report on 18th August 2024 for the financial year ended on…
10. Deepa Ltd., initially requested an audit engagement for the financial year 2023-2024. However, midway through the audit process, the management…
11. CARO, 2020 shall apply to every company including foreign company. However, it specifically exempts certain class of companies. State which class of…
12. RST Ltd., a mid-sized trading company, recently faced challenges in securing a bank loan due to doubts about the reliability of its financial…
13. During the audit of Smile Bank, CA Sweety focused on understanding the risk management process of the bank. She reviewed how management developed…
14. Aman Cooperative Society appointed FAB & Associates as an auditor for the financial year 2023-2024. During the audit, the auditors noted the…
15. “In establishing the overall audit strategy, the auditor shall, among other considerations, ascertain the nature, timing and extent of resources…
16. During the audit of HST Ltd., CA Mukund, the auditor, observed a significant volume of unsold electronic parts as inventory that had remained…
17. The engagement partner, of a firm of auditors, is explaining to his audit team, undergoing practical training, the inter relationship between audit…
18. Calen Retail Ltd. is preparing its annual financial statements, and the auditors are tasked with determining materiality. The company has used…
19. M/s AR & Associates have been appointed as statutory auditors of Future Limited, a company engaged in the business of manufacturing of hardware…
20. CA Kavita, auditor of Healthify Ltd., while assessing potential risks of material misstatement related to litigations at Healthify Ltd., identified…
21. Familiarity threats are self-evident, and occur when auditors form relationships with the client where they end up being too sympathetic to the…
22. When more persuasive audit evidence is needed regarding the effectiveness of a control, it may be appropriate to increase the extent of testing of…
23. ASD Limited's business has grown from one state of India to various countries of the world. Since the business has increased manifold, the…
24. The management of PQ Ltd. changed during the period under audit. Mr. Govind, an auditor, at the time of receiving written representation on the…
25. Knowledge of the Client's business play an important role in developing an overall audit. In fact, without adequate knowledge of the client's…
26. While auditing ANJ Industries Private Limited, CA J has decided that it would be appropriate to examine 100% of the items comprising turnover of 30…
27. Revanth, Manohar and Piyush are planning to set up a new business for trading of electronic goods. They have heard in business circles that many…
28. Vama & Associates were appointed as auditors for Royal Constructions Ltd. for the financial year 2023-2024. During the audit, the auditors observed…
29. M/s RJ & Associates, Chartered Accountants, has been auditing the books of GP Resorts Private Limited for the past two years. GP Resorts Private…
30. TAD & Associates, a sole proprietor firm of Agamya, is offered appointment as auditor of a company engaged in manufacturing of automobile components…
31. A practicing Chartered Accountant has been engaged by a company to perform certain procedures relating to its trade payables. Such agreed upon…
32. During the audit of a company, CA Jack obtained written representations from management regarding all known instances of non-compliance with laws…
33. CA Shubham, the auditor of Sigma Limited, is performing tests of controls and tests of details using audit sampling. During these procedures, he…
34. CA Srishti, while auditing KSM Private Limited for the first time, utilised software to analyse financial data, comparing amounts recorded in the…
35. CA Paras has accepted audit of financial statements of an entity. According to the Standards on Auditing, the auditor is required to send an audit…
36. “When the auditor modifies the audit opinion, the auditor shall use the heading “Qualified Opinion,” “Adverse Opinion,” or “Disclaimer of Opinion,"…
37. Rajul Ltd. engaged an external practitioner CA Rajul to provide assurance on its prospective financial information for the upcoming year, which…
38. Mahavir and Associates is appointed as the statutory auditor of KBC Bank for the financial year 2023-2024. During the audit, Ms. Chandana, an…
39. You are appointed as an auditor of “The Prestigious Township Club”. As the auditor of "The Prestigious Township Club" for the financial year…
40. During the audit of a limited company as a statutory auditor you discovered that a fraud amounting to 5 lakh has been committed by the company. What…
41. CA Karan wants to test the “completeness” assertion relating to intangible assets reflected in the financial statements of Data Solutions Private…
42. SA 330 states that auditor shall design and perform tests of controls to obtain sufficient appropriate audit evidence as to operating effectiveness…
43. Lotus Ltd., a rapidly growing manufacturing company, appointed Ridhi & Co., as statutory auditor. The engagement team of Ridhi & Co. identified key…
44. M/s KSJS & Associates are the statutory auditors of Moon Ltd. for the financial year 2023-24. During an audit briefing, CA Sanket, the engagement…
45. The reliability of audit evidence depends on its source, nature, and the circumstances under which it is obtained, including the controls over its…
46. Kyte Private Limited acquired an immovable property of substantial value during the financial year 2023-24, which is recorded in the financial…
47. KR & Associates, an auditor of FDP Ltd., observed that the company has implemented various internal controls addressing financial reporting,…
48. Audit programme is a list of examination and verification steps to be applied and set out in such a way that the inter-relationship of one step to…
49. As the statutory auditor of Ginni Ltd., you need to verify if the company has valid legal ownership rights over the inventories recorded in the…