Navya & Associates are the statutory auditors of MNO Ltd. for the financial year 2024-25. While conducting the audit, CA Nemi, the engagement…
CA Final · Advanced Auditing, Assurance and Professional Ethics · MTP · September 2025
Navya & Associates are the statutory auditors of MNO Ltd. for the financial year 2024-25. While conducting the audit, CA Nemi, the engagement partner noticed the following: Investigations by regulatory organisations and government departments or payment of fines or penalties.Payments for unspecified services or loans to consultants, related parties, employees or government employees.Unusual payments in cash, purchases in the form of cashiers' cheques payable to bearer or transfers to numbered bank accounts.Unusual payments towards legal and retainership fees.Unusual transactions with companies registered in tax havens.Payments without proper exchange control documentation. CA Nemi should consider the above as indicative of:
Suggested Answer and Working Notes:
Correct Answer: Option (D)
Doubt of non-compliance to laws by MNO Ltd.
Topics: Standard on Auditing (SA), Quality Control, Audit Evidence
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