CA Intermediate Paper 5

Completion and Review MCQ

Chapter 7 • 5 Questions from ICAI Study Material

Questions

5

Est. Time

8 min

Source

ICAI Book

Sample Questions: Completion and Review

Preview 3 of 5 questions from Chapter 7

1. An auditor of a company communicates significant findings from audit with those charged with governance in the company. Which of the statements is false in regard to communication made?

A) Evaluation of adequacy of communication process is required on part of the auditor.
B) Planned scope and timing of audit has also to be communicated.
C) Communication of rationale behind audit procedures is necessary. ✓
D) Significant difficulties encountered during audit, if any, have to be communicated.

2. Written representations are: -

A) Necessary audit evidence ✓
B) Sufficient appropriate audit evidence
C) Not audit evidence
D) Audit evidence depending upon auditor’s professional judgment

3. Which of the following is false regarding communication of misstatements identified during course of an audit?

A) The auditor should request those charged with governance for correction of identified misstatements.
B) The auditor should obtain written representation acknowledging management belief that effect of uncorrected misstatements is material. ✓
C) The auditor should obtain written representation acknowledging management belief that effect of uncorrected misstatements is immaterial.
D) The auditor should communicate effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole.