CA Inter Auditing and Ethics MTP May 2024: Question Paper and Solutions

How to Prepare for CA Intermediate Auditing and Ethics

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Question directory and available solutions

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

1. Dhanush, a CA student undergoing articles, is part of an engagement team conducting audit of Test Enterprises Private Limited. The company is…
2. CDL Limited, a company dealing in FMCG goods, is having 50 branches in India. SKC & Associates (referred to as company's auditor) are appointed as…
3. CA B is conducting statutory audit of branch of a nationalized bank. Saurabh, a CA student, is also part of engagement team conducting statutory…
4. “We, the people” is an NGO working for rights of citizens. Due to nature of its activities, its volunteers take part in agitations which acquire…
5. CA J is in process of planning audit for a large company engaged in business of dealing and manufacturing of pharmaceutical products. Central Drugs…
6. CA Tarini is in process of formulating audit plan for conducting audit of a company engaged in business of dealing in commodity futures. Which of…
7. DOX Limited, a service provider company engaged in providing courier services pan-India as well as internationally, has appointed an internal…
8. Up and High Private Limited has started its export business during the year 2023-24. The company was catering to domestic market only in past years.…
9. Prudent Enterprises Private Limited has incurred and fully spent for the first time Corporate Social Responsibility (CSR) expenditure amounting to…
10. CA Tripad (engagement partner) based at New Delhi is external auditor of Lap of Nature, a firm, since last three years. The firm is engaged in…
11. Mention any four financial events or conditions that, individually or collectively, may cast significant doubt on the entity's ability to continue…
12. Adequate planning benefits the audit of financial statements in several ways. Explain.
13. The auditor carries out his work by obtaining audit evidence through performance of audit procedures. However, there are practical and legal…
14. Goods and Services Tax Network (GSTN) is a not for profit, limited by shares, company. Its 50% shareholding is with Union Government and 50% with…
15. Suniti, a CA student, is part of an engagement team conducting audit of a company TIM Private Limited. According to audit programme, she is…
16. CA B is statutory auditor of Boom Payments Bank for year 2023-24. During the year, banking regulator has imposed restrictions on Bank from accepting…
17. You are part of engagement team conducting audit of an entity engaged in manufacturing business. State few audit procedures you would undertake to…
18. While performing statutory audit of Contra Industries Private Limited, a company engaged in manufacturing and assembling of LED lights, CA Varun has…
19. Auditor shall develop an audit plan that includes description of audit procedures. Specify requirements in this regard.
20. What is meant by audit documentation? What are objectives of an independent auditor in accordance with SA 230?
21. WTE Private Limited is engaged in business of manufacturing a product liable to GST @ 5%. The input raw materials for manufacturing this product are…
22. The objective of an auditor in accordance with SA 315 is to identify and assess risks of material misstatement at financial statement level and…
23. You have been appointed as an auditor of ABC Hotel, a three star hotel, for Financial Year 2022-23. As an auditor what are the special points that…
24. SQC 1 dwells upon engagement quality control review (EQCR) as part of system of quality control in a firm. Why is such a review required? For which…
25. CA Z is appointed as statutory auditor of BETA Private Limited for the year 2023-24. There exists an internal audit function in the company headed…
26. The audit of Government expenditure is one of the major components of Government audit. Briefly explain the basic standards set in relation to audit…
27. Cinescreen Multiplex Ltd. is operating cinemas in different locations in Mumbai and has appointed you as an internal auditor. What are the areas…
28. Given below is a table containing Column A and Column B. Column A contains description of certain controls in an automated environment. Complete…
29. An engagement partner takes overall responsibility for maintaining audit quality in an audit engagement in accordance with SA 220. What are his…
30. Pluto Limited is engaged in manufacturing and distribution of ergonomic furniture. Such kind of customisable range home office furniture has gained…
31. Watch IT India Private Limited is a company engaged in business of manufacturing smart watches. The company had a slow start in the beginning as…
32. In accordance with requirements of Standards on Auditing, CA Tina (a freshly qualified professional) wants to obtain sufficient appropriate audit…
33. CA D, during the course of audit of a company engaged in export business, notices that credit facilities taken by company during the year from a…
34. An auditor of a company has found that accountant of a company has entered bogus purchase bills for 50lacs in its books of accounts. Which of…
35. During course of audit of a company, it is noticed by auditor that Profit before tax of company is 5 lakhs. Depreciation on building reflected in…
36. Sanjeev, an articled clerk in an audit firm, is part of an engagement team conducting audit of a company for year 2023-24. It is a small company…
37. Following is the extract from Schedule no. 10 of Advances as appearing in financial statements of branch of a nationalized bank for year ending 31st…
38. CA J is working as internal auditor in JKL Limited, a non-listed company. The responsibilities of internal auditor include reviewing financial…
39. KST Limited is engaged in manufacturing business. It appoints CA T to provide it an assurance report on its financial statements prepared on the…
40. Written representation about management's responsibilities involves confirmation of fulfilment of management's responsibilities in the preparation…
41. Planning includes consideration of the timing of certain activities and audit procedures that need to be completed prior to the performance of…
42. In an initial audit engagement, in the case of inventories, the current period's audit procedures on the closing inventory balance provide little…
43. Internal Control Questionnaire is a comprehensive series of questions concerning internal control. A company is engaged in business of manufacturing…
44. Tisa Industries Private Limited has prepared its financial statements for year 2023-24. The financial statements and notes to accounts show…
45. Being statutory auditor of JAL Limited, a company engaged in manufacturing of chemicals, CA Gopika has understood that company is expected to have…
46. The ascertaining of reporting objectives of engagement helps the auditor to plan timing of different audit procedures and also nature of…
47. One of the factors affecting the form, content and extent of audit documentation relates to size and complexity of the entity. State six other…
48. It is important to carry out the Tests of Controls for checking effectiveness of internal control over sales as a part of the debtors' audit…
49. M/s S R & Associates are the Statutory Auditors of Vanee Textile and Garments Ltd., a company engaged in the business of manufacturing of various…
50. Nature of financial reporting itself is one of causes of inherent limitations of audit of financial statements. Explain.
51. Discuss the objective of the auditor as per Standard on Auditing (SA) 705 “Modifications to The Opinion in The Independent Auditor's Report”.
52. Column A describes description of certain terms used in banking industry. Complete Column B by suggesting term appropriate to description given.…
53. Obtaining an understanding of the entity and its environment, including the entity's internal control, is a continuous, dynamic process of…
54. You are auditor of a college running different courses operating in your city. During audit of a year, it is noticed that fees concessions to…
55. The auditor shall agree the terms of the audit engagement with management or those charged with governance, as appropriate. The agreed terms of the…
56. Auditor of Sunshine Ltd. is of the view that due to greater management intervention to specify accounting treatment, the risk of material…
57. On reviewing internal control over accounting for sales as part of statutory audit of A Ltd, auditor finds certain deficiencies in segregation of…
58. Audit against propriety seeks to ensure that expenditure conforms to certain principles which have for long been recognised as standards of…
59. The auditor needs to direct efforts of engagement team towards matters that in his professional judgment are significant. Preliminary identification…
60. CA. Ravi Patnaik is conducting audit of a company for which reporting requirements under CARO, 2020 are applicable. He finds that cash credit…