CA Intermediate Paper 5

Audit Documentation MCQ

Chapter 6 • 6 Questions from ICAI Study Material

Questions

6

Est. Time

9 min

Source

ICAI Book

Sample Questions: Audit Documentation

Preview 4 of 6 questions from Chapter 6

1. Which of the following statement is appropriately suited to preparation of audit documentation?

A) Audit documentation has to be prepared simultaneously as audit progresses. ✓
B) Audit documentation has to be prepared 60 days after date of audit report.
C) Audit documentation has to be prepared when information is required by regulator.
D) Audit documentation has to be prepared 60 days after completion of audit work.

2. Audit documentation is owned by: -

A) Client
B) Auditor ✓
C) Team member responsible for documentation
D) Regulator

3. Which of the following is least likely to be included in audit documentation of a company engaged in manufacturing and export of goods?

A) Previous years audited financial statements
B) Projected cash flow statement for next twelve months provided by management in support of going concern assumption
C) Statements showing dispatch of overseas consignments in accordance with delivery schedules of overseas buyers ✓
D) Statement showing verification of ageing of trade receivables as on date of balance sheet
Correct/Incorrect

4. As per SA 230 on “Audit Documentation”, the working papers are not the property of the auditor.

Correct
Incorrect ✓

Explanation: As per SA 230 on “Audit Documentation” the working papers are the property of the auditor and the auditor has right to retain them. He may at his discretion can make available working papers to his client. The auditor should retain them long enough to meet the needs of his practice and legal or professional requirement.