CA Intermediate Paper 5

Audit Strategy, Planning and Programme MCQ

Chapter 2 • 10 Questions from ICAI Study Material

Questions

10

Est. Time

15 min

Source

ICAI Book

Sample Questions: Audit Strategy, Planning and Programme

Preview 4 of 10 questions from Chapter 2

1. Which of the following is not considered in planning an audit generally?

A) Understanding of legal and regulatory framework of an entity
B) Need to consider determination of materiality
C) Evaluating audit evidence ✓
D) Need to consider involvement of expert

2. Which of the following is true about audit plan?

A) Once an audit plan has been finalized for an engagement, changes cannot be made to it.
B) Audit plan includes scope, timing and direction of planned risk assessment procedures.
C) Changes in audit plan cannot lead to change in audit strategy.
D) Audit plan has to be documented by auditor. ✓

3. Which of the following is not included in an audit programme normally?

A) Extent of checking
B) Date of checking
C) Nature or type of procedure
D) Planning of risk assessment procedures ✓
Correct/Incorrect

4. The establishment of the overall audit strategy and the detailed audit plan are not necessarily discrete or sequential processes, but are closely inter-related since changes in one may result in consequential changes to the other.

Correct ✓
Incorrect

Explanation: Once the overall audit strategy has been established, an audit plan can be developed to achieve the audit objectives through the efficient use of the auditor’s resources. The establishment of the overall audit strategy and the detailed audit plan are not necessarily discrete or sequential processes, but are closely inter-related since changes in one may result in consequential changes to the other.