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

How to Prepare for CA Intermediate Auditing and Ethics

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Question directory and available solutions

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

1. M/s Vishwacharya and Associates, a CA firm based in Orissa, is appointed as an auditor of CBF Bank for the financial year 2023-24. During the course…
2. Priority Limited is a large company engaged in manufacturing of terry towels making steady profits on a year-to-year basis. PMR & Associates,…
3. Bandhu Charitable Trust is considering appointment of MNO & Associates, Chartered Accountants, as independent auditors of its financial statements.…
4. CA Prince, after developing the audit strategy for Vedika Limited, develops an audit plan but finds a need to revise the materiality levels set…
5. Jasmine was of the view that audited financial statements are not a guarantee against probable wrong doings in the financial matters of companies.…
6. CA Raman instructed his article Raju to verify whether employee benefit expense of Prep Limited has been fairly allocated between the operating…
7. Subodh has recently joined an audit firm as an articled clerk. He was in process of assembling audit working papers in audit file of Cop Limited, as…
8. CA Tina, while inspecting financial statements of a company, notices that gross profit ratio of company has increased from 14% in year 2022-23 to…
9. Expert Industries Limited is engaged in petrochemical business. Due to nature of its business, the company has hired PQR Associates, a reputed firm…
10. Stay fit Private Limited is a start-up that has been in business for about two years. It runs an application which provides valuable information…
11. PQR & Associates and MNO & Co., both firms of Chartered Accountants, have been appointed as joint auditors of Gama and Beta Limited. Before the…
12. Mr. Chetan is appointed as an auditor of Spot Limited, a small company. Mr. Chetan is aware that CARO 2020 is not applicable to small company. List…
13. Zed Limited is engaged in the manufacturing and export of shoes. The statutory auditor of the company wants to reasonably ensure that only the…
14. The management of Cool Drinks Limited suspects that some employees of the company may be involved in making fraudulent payments to dummy workers at…
15. CA X is contemplating the use of negative confirmation requests as the sole substantive audit procedure to verify certain accounts payable balances…
16. CA H has been offered audit of financial statements of a society engaged in promoting social causes, such as setting up of drug de-addiction centres…
17. SQC 1 requires assumption of leadership responsibilities for quality within firm. Are such leadership responsibilities required for audit…
18. CA Sumit has been appointed as statutory auditor of Core Limited. List out some matters that he may consider in determining whether a deficiency or…
19. While conducting the audit of Zeena Limited, CA E is trying to obtain understanding of different components of internal controls of the company.…
20. While verifying cash and cash equivalents of a company, CA D engagement partner, is very particular that Bank reconciliation statement (BRS)…
21. National Bank has advanced cash credit facility of 25 Lakh to Sun Industries. Following is the extract of account of Sun Industries reflecting in…
22. While performing audit of financial statements of a listed company, statutory auditor needs to maintain an attitude of professional skepticism for…
23. Sanjana is of the view that there exist some disadvantages in the use of audit programmes but most of these can be removed by following some…
24. DLP & Associates, a firm of Chartered Accountants, are in midst of conducting audit of Twist and Spin Limited. The company is in business since last…
25. CA J is nearing completion of audit of Cheap Cost Private Limited, a manufacturing company for the year 2023-24. The draft financial statements of…
26. MPM & Associates, a firm of Chartered Accountants, have received offer letter from PST Bank for carrying out statutory audit of their Chandigarh…
27. CA Y has started planning for audit of a listed company. In this respect, he is considering all the matters relating to acceptance of client,…
28. A practicing Chartered Accountant is appointed by a company to perform certain agreed-upon procedures relating to its trade payables. Such agreed…
29. The audit of government expenditure is one of the major components of government audit. In this regard, what is meant by "Audit against rules and…
30. CDE Private Limited, a manufacturing company, had made investment in shares of some blue-chip companies. Additionally, it had temporarily deposited…
31. During the audit of a company, CA Z is using a software to select samples pertaining to sales records of the company. While performing this process,…
32. Truthful Products Private Limited is engaged in trading stationery items. During the year 2023-24, there was a huge fire in one storage location of…
33. "Assurance engagement” means an engagement in which a practitioner expresses a conclusion designed to enhance the degree of confidence of the…
34. Pure Services Limited is into the litigation relating to some legal action initiated by the industry regulator. The matter has reached…
35. CA Y, statutory auditor of a company, is in process of determining materiality for financial statements while planning audit. Since materiality is a…
36. During the course of statutory branch audit of a nationalized bank, CA Amrish is performing audit procedures in relation to the advances. He has…
37. While auditing the financial statements of Bro Traders LLP, CA L is carefully going through LLP agreement. Briefly discuss the key points CA L…
38. CA N, statutory auditor of Rock Limited, is in the process of final assembly of audit file. Under what circumstances, a statutory auditor can make…
39. CA J is appointed as statutory auditor of Sigma and Beta Limited for the year 2023-24. During the audit he observed trade receivables amounting to…
40. While planning the audit of Me Limited, CA M has planned nature, timing and extent of risk assessment procedures to identify and assess risks of…
41. CA D is planning an audit of a listed company. List specific documentation requirements in accordance with SA 300 in relation to planning such an…
42. Section 143(1) of Companies Act, 2013 states that every auditor of a company shall have access to books of accounts and vouchers of company and…
43. M/s Veer and Associates is appointed as auditor of KMP limited. During the audit, auditor wants to verify that trade payables and liability balances…
44. CA M, auditor of a company, has planned to use substantive analytical procedures during course of audit. In this regard, he has decided to use such…
45. Mr. Vaayu is appointed as the auditor of PRISM Limited for the year 2023-24. He wants to ensure that the PPE has been valued appropriately and as…
46. M/s TP & Co., a firm of Chartered Accountants, has been conducting audit of KSR Ltd. since last 4 years. KSR Ltd. has diversified their business…
47. As per SA 560, when after the date of the auditor's report but before the date the financial statements are issued, a fact becomes known to the…