CA Inter Auditing and Ethics MTP May 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. Jin Kushal & Associates is a firm of Chartered Accountants practicing in Delhi. The firm consists of two partners namely, CA Jin and CA Kushal. The…
2. MA & Associates, a Chartered Accountant firm is appointed as an auditor of XYZ Pvt. Ltd. Amit, partner of the firm, has recently bought stock in XYZ…
3. A government department was allocated a specific budget for infrastructure development projects during the current financial year. During the audit…
4. PQR Ltd., a manufacturing company, has been facing operational challenges. Recently, they struggled to find essential raw materials due to supply…
5. AMN Ltd. has capitalised a software as an intangible asset in its financial statements. To verify whether the software is actively in use, the…
6. ABC Ltd. appointed CA Jai to conduct the statutory audit. During the audit, the auditor identified some errors in the financial records and he got…
7. CA T is the statutory auditor of QRS Ltd. While performing testing of additions during the year, he wanted to verify that: All PPE (property, plant…
8. Sigma Ltd. has approached CJK & Associates to appoint them as their auditor for a period of 5 years in accordance with provisions of the Companies…
9. CA Yash is conducting audit of a company for year 2023-24. The company is engaged in export of ethnic rugs to buyers in Europe. The audit is nearing…
10. Significant risks often relate to significant non- routine transactions or judgmental matters. Non-routine transactions are transactions that are…
11. No inspection under Section 79 of Multi-State Co-operative Societies Act, 2002 shall be made unless a notice has been given to the multi-state…
12. As the auditor of CRT Ltd., a construction company, for the year 2023-24, you are preparing an audit programme to systematically guide the audit…
13. Audit against rules and orders aims to ensure that the expenditure conforms to the relevant provisions of the Constitution and of the laws and rules…
14. A deficiency or combination of deficiencies in internal control that, in the auditor's professional judgment, is of sufficient importance to merit…
15. During an audit of MNT Ltd., CA Shubh, the auditor discovers an issue with stock valuation. To ensure the accuracy and reliability of his…
16. The auditor's report shall include a section with a heading “Responsibilities of Management for the Financial Statements.” SA 200 explains the…
17. Jay & Associates, a Chartered Accountant firm is appointed as an auditor of XYZ Ltd., a manufacturing company with multiple branches across the…
18. While conducting the audit of Pummy Limited, the statutory auditors collected written representations from the Management. The audit was finalised…
19. Advances generally constitute a major part of the assets of the bank. There are large number of borrowers to whom variety of advances are granted.…
20. WEQ Ltd. has issued shares for cash at a premium. In accordance with section 52 of the Companies Act, 2013, the company is required to transfer the…
21. An audit is a reasonable assurance engagement, whereas a review is a limited assurance engagement. Both types of assurance engagements provide…
22. CA T, the statutory auditor of a company, is in the process of designing external confirmation requests to be sent to trade receivables outstanding…
23. Much of the information obtained by the auditor's inquiries is obtained from management and those responsible for financial reporting. However, the…
24. SKN Ltd. a biopharma company and global manufacturers of select critical care medical products has been sanctioned working capital limits of 5.99…
25. SRT Pvt. Ltd., based in Mumbai, is engaged in export of brassware goods. The company has huge export receivables as on 31st March 2024. It is also…
26. Star Ltd., a leading manufacturer of windmills in India, appointed M/s Shahi & Co., LLP of Chartered Accountants, as its statutory auditors for F.Y.…
27. Raavi & Co., a Chartered Accountants firm, has been appointed as auditor of XYZ Ltd., a prospective new client. CA Sukanya, one of the firm's…
28. CA Misha is appointed as the statutory audit of a branch of FDH Bank. During the audit, the following issues were observed: The bank provides "Kisan…
29. CA Radha is appointed as an auditor of a PVC Ltd. for the first time. A detailed set of instructions has been prepared by her office and handed over…
30. The management of a company has approached its bankers and requested for enhancement in working capital credit facilities. The bank manager…
31. While conducting the audit of receipts of Government Company, which of the following area is to be covered as part of Audit of Receipts? Whether all…
32. Identify and briefly explain the component of risks of material misstatement involved in the following situations: (i) GHK Private Limited is a…
33. The assistant of CA Bhavik is assigned responsibility of drafting "audit programme" relating to purchases appearing in financial statements of Arya…
34. Identify and explain briefly the audit procedure used by the auditor to obtain audit evidence in following situations: (i) While auditing the books…
35. Identify and explain the assertions that the auditor will check by performing the following audit procedures- (i) Inventory recognised in the…
36. While planning the audit of an NGO, the auditor may focus on knowledge of the NGO's work, its mission and vision, updating knowledge of relevant…
37. CA Tina, the auditor of SKY Ltd., asks its finance and audit head to prepare audit strategy for conducting audit of SKY Ltd. CA Tina also insists…
38. While auditing a renowned four-star hotel in Pune, CA Shrey observes a gift shop operating within the hotel premises. On further enquiries, he comes…
39. Auditors are required to obtain an understanding of internal control relevant to the audit when identifying and assessing its effectiveness and risk…
40. Wire Limited, a company engaged in manufacturing of electric equipment, gets some part of its production processes outsourced from third parties.…
41. The senior member of the firm Soni & Associates, Chartered Accountants, informed to its auditing staff that at the time of audit reporting regarding…
42. The auditor shall plan and perform an audit with professional skepticism recognising that circumstances may exist that cause the financial…
43. During the audit of Jimjam Ltd., CA Arjun, the auditor shall perform audit procedures designed to obtain sufficient appropriate audit evidence that…
44. As per Multi-state Co-operative Societies Act, 2002, the auditor shall make a report to the members of the multi-state co-operative society on the…
45. During the audit of Grace Pvt. Ltd., CA Tanu notices that significant amount of depreciation and amortisation charges are reflected in financial…
46. The auditor is not expected to, and cannot, reduce audit risk to zero and cannot therefore obtain absolute assurance that the financial statements…
47. The auditor has a responsibility to perform audit procedures to identify, assess and respond to the risks of material misstatement arising from the…
48. While it is true that companies can benefit immensely from the use of data analysis in terms of increased profitability, better customer service,…
49. Communicating key audit matters in the auditor's report is in the context of the auditor having formed an opinion on the financial statements as a…