Practice Auditing Questions and Answers

• Which of the following best describes analytical procedures as per SA 520?
• Late-year reinsurance treaties significantly reduce reported loss ratio. Which step is most relevant to fraud risk of “window dressing”?
• Which balance is least suited to positive confirmation?
• An auditor identifies a significant risk around revenue cut-off due to manual end-period adjustments and complex multi-element contracts. The client propos...
• During a statutory audit, the auditor discovers a pattern of journal entries posted near year-end reversing shortly after year-end that inflate reported pr...
• Client has breached debt covenants; lender issued waiver valid for 9 months after balance sheet date. Auditor notes liquidity support from group company bu...
• An auditor uses statistical sampling to test receivables confirmations. Why is statistical sampling often preferred over judgmental sampling?
• Why must auditors obtain an understanding of internal control even if they do not intend to rely on it?
• An auditor notices that a bank’s internal controls over loan approvals are weak, but substantive testing of balances shows no material misstatements. Whi...
• An auditor detects unusual journal entries passed at month-end involving revenue accounts, without supporting documents. Management explains they are “ye...
• While applying analytical procedures, auditor notes gross profit margin fell from 25% to 18% though sales increased. Inventory valuation appears unchanged....
• An auditor concludes financial statements give a true and fair view, except that inventory of Rs. 50 lakh was not physically verified due to management res...
• The primary objective of an audit is to:
• An audit conducted between two annual audits is known as a:
• Vouching primarily relates to:
• Which of the following is an example of an inherent limitation of an audit?
• The primary objective of an audit is to:
• The risk that an auditor's procedures will fail to detect a material misstatement is known as:
• An audit engagement letter is primarily issued to:
• When an auditor modifies the opinion in the audit report by stating "except for" a matter, it is referred to as a(n):
• Which of the following is NOT a type of audit opinion as per SA 700?
• Which of the following is an example of a "Test of Control" in an audit?
• The risk that the internal control system will fail to prevent or detect a material misstatement is:
• The risk that an auditor may give an inappropriate opinion when financial statements are materially misstated is:
• Audit program is prepared by:
• Working papers are primarily the property of:
• Going Concern assumption is the responsibility of:
• As per SA 200, the objective of an audit of financial statements is to:
• An auditor's sample for test of controls is least likely to be designed to:
• "Subsequent Events" as per SA 560 refer to events occurring:
• The risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated is known as:
• As per the Companies Act, 2013, which of the following is not a disqualification for an auditor of a company?
• As per SA 210, the auditor shall agree the terms of the audit engagement with:
• Which of the following is an example of an "Inherent Risk" factor?
• As per SA 500, the reliability of audit evidence is increased when it is:
• A "Qualified Opinion" is expressed by an auditor when:
• Internal check is a part of the:
• Under SA 510 (Initial Audit Engagements — Opening Balances), what is the auditor's main objective regarding opening balances?
• According to SA 560 (Subsequent Events), what are "subsequent events"?
• Under SA 580 (Written Representations), if management refuses to provide a requested written representation regarding its responsibilities, what action mus...