CA Inter Auditing Important Questions For May 2019 | By CA Inter Topper
Check CA Inter Auditing Important Questions For May 2019 | By CA Inter Topper. In the previous articles, we have given CA Inter Advanced Accounting and Financial Management & Economics for Finance chapter wise important questions for May 2019 attempt. Today we are providing CA Inter Auditing and Assurance most important questions for May 2019 attempt (सीए इंटर ऑडिटिंग इम्पोर्टेन्ट प्रश्न). With only a few days left for the CA Inter exam May 2019, students have very less time to cement their learnings and get well prepared to write the perfect exams. During these days before the exams, students should avoid studying anything new. They must focus on practising and revising what they have studied until now.
Moreover, they must go through the important topics and practice the questions related to those topics. This will help to fine-tune your preparations for the board exams. It’s very essential that students pick reliable study material and practice manual, which provide only important and meaningful stuff so that students are able to make an effective preparation for the exam.
Here we have given all the important question on Group II Auditing And Assurance Paper. Here we have mainly given the expected important questions for Auditing And Assurance. Expected questions are given for both theory questions and practical questions. People who are preparing for the CA Inter Auditing And Assurance Exam can follow these questions for their exams preparation. If you don’t have time, here we have given all 4 marks important questions, 8 marks important questions and 16 marks important questions. So prepare all these short answers questions and long answers questions.
CA Inter Auditing Important Questions May 2019 (Theory)
Here we have given the CA Inter Auditing And Assurance important theory questions. The below-given questions are the guess questions for the auditing and assurance exam. Here we have given CA Inter Auditing And Assurance expected questions related on 4 Marks, 8 Marks and 16 Marks. Please have a look!
INTRODUCTION TO AUDIT
- Discuss statutory audits along with few examples.
- Explain the utility of Auditing. (Advantages)
- Why the auditor cannot give assurance about the future?
- Risk of Non-detecting a fraud is much higher than the risk of Non-detecting an error. Explain the statement with reference to auditor’s responsibilities for non-detection of frauds and errors.
- What are Self-revealing errors? Explain giving examples.
- Write a short note on engagement standards.
- Write a short note on the Misappropriation of assets.
- Between “Statements” and “Guidance Notes” of ICAI, which are mandatory and which are recommendatory? What is the scope of AASB? (Hint: Objectives and functions)
- What is the need to maintain Professional scepticism while performing an audit as per SA 200?
- Discuss the concept of True and fair view along with specific matters to constitute what is true and fair view.
AGREEING TO AN AUDIT
- Is it mandatory to send a new letter of engagement for each and every year in case of recurring audits?
- How would an auditor decide whether to accept or nor a client’s relationship as per SA 220?
- Write a short note on change in terms of engagement as per SA 210.
- What are the Disqualifications of a Company’s Auditor?
- State the services which an auditor of a company is prohibited to render to the client being audited as per Sec 144 of the Companies Act 2013?
- Explain the procedure for appointment of First and subsequent auditor of a company as per Companies Act, 2013. Discuss the concept of casual vacancy as per Companies Act, 2013.
- Explain the auditor’s duty to make inquiry as per section 143(1).
- What are the reporting responsibilities of the auditor, if he has identified a fraud for an amount exceeding Rs.l crore? (Hint: Sec 143(12).)
- Explain the Rights of the auditor of a company.
- Explain the auditor’s responsibilities to report on Internal Financial Controls. (Refer amendments material)
RISK ASSESSMENT AND INTERNAL CONTROLS
- “Acquiring knowledge of the client’s business is an indispensable part of preparing for an audit”. Explain the statement by giving specific matters as per SA 315.
- Write a short note on Audit risk and explain its relationship with Materiality.
- What are the inherent limitations of Internal Controls?
- Explain the techniques used for the evaluation of internal controls by the auditor? (Hint: Narrative record, checklist etc.)
- Explain the concept of Internal check along with steps to be followed while framing it.
PLANNING AN AUDIT
- What is the continuous audit and what are the precautions that should be taken to avoid the disadvantages of the continuous audit?
- What are the Factors to be considered by auditor in the identification of an appropriate benchmark for the determination of materiality as per SA 320?
- You are the auditor of the company. What precautions you will suggest in adopting test checking technique for audit work?
- Explain the requirements relating to sample design, sample size and selection of items for testing as per SA 530. Risk factors while applying the sampling technique. (Hint: Sampling risk)
- Write a short note on Methods of sampling as per SA530.
- Write short notes on the Advantages of Statistical Sampling in Auditing.
PERFORMING AN AUDIT
- State various factors that help the auditor to ascertain as to what is sufficient appropriate audit evidence.
- What are the principles to be considered by auditor in assessing the reliability of audit evidence?
- What are the areas of Surprise checks?
- What does SA 230 say about utility, ownership, custody and retention of working papers?
- The form, contents and extent of audit documents depend on certain factors. Explain with reference to SA 230. Write short on contents of Audit notebook?
- Why Tests of Control are performed? Also, explain what do they include?
AUDIT OF ITEMS OF FINANCIAL STATEMENTS
- Briefly discuss the provisions of the Companies Act, 2013 with regard to the issue of shares at a discount?
- What are sweat equity shares? Flow do you verify the issue of sweat equity shares?
- Discuss the Disclosure requirement relating to Investments and Trade receivables under schedule companies Act 2013.
- The flow will you vouch for the following: a) Advertisement expenditure a) Sales b) Travelling expenses f) Goods sent out on sale or return. c) Repairs to assets g) Consignment sales d) Goods sent on consignment
- Rental receipts Manipulation of Accounts.
- Write a short note on Cut off Procedures.
- Discuss analytical procedures in the verification of inventories as well as Trade receivables.
- You are the auditor and examining the book debts of a company. Give some indications which lead to doubt about recovery as uncollectable debts from Trade Receivables and Advances.
- How will you verify the following:
- Building or Plant and machinery.
- Cash at bank
- Intangible assets
- Work in progress.
- Long term borrowings
- Contingent liabilities
- Goods / Inventory lying with the third party.
AUDIT REPORTING [INCLUDING CARO.2016]
- The emphasis of matter Paragraph VS Other Matter Paragraph.
- Explain the basic element/contents of auditor’s report as per SA 700?
- Write a short note on the Basis for a Modified opinion as per SA 705.
- Explain the matters which lead the auditors to express a modified opinion as per SA 705.
- Briefly explain the concept of Removal of Auditor before Expiry of Term.
- Under what circumstances the retiring Auditor cannot be reappointed?
- Entire SA 701.
- Entire CARO, 2016.
AUDIT IN AN AUTOMATED ENVIRONMENT
- Explain the relevance of “IT” in an audit?
- What are the points to be considered by the auditor in understanding a company’s automated environment and explain the risks related to the use of IT system?
- What are the testing methods to be adopted by the auditor in checking the controls in an automated environment? Write a short note on Data analytics for audit in an automated environment?
AUDIT OF DIFFERENT TYPES OF ENTITIES
- Mention any eight special points which you as an auditor would look into while auditing the books of a partnership firm.
- Mention the special steps involved in the audit of an Educational Institution.
- State any five special points which you, as an auditor, would look into while examining the income and collection of the fund by an NGO engaged in providing relief work for flood victims.
- Audit of Leasing or Hire purchasing company.
- Audit of local bodies.
- Write a short on Audit of LLPs.
AUDIT OF CO-OPERATIVE SOCIETIES
- What are the special features of Co-operative Audit?
- What are the inquiries to be made by the auditor in case of audit of Multi-state co-operative societies?
- Explain the power of CG to direct Special audit in the audit of Multi-state co-operative societies?
AUDIT OF BANKS
- Explain the concept of Engagement team discussions in case of Bank audits?
- Discuss the reporting requirements of the auditor in case of audit of banks?
- Explain RBI’s Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances. What are the specific aspects to be seen by the auditor while auditing the advances of banks?
- Audit against the propriety seeks to ensure that expenditure confirms to certain principles. Comment.
- Powers of C& AG in connection with the performance of his duties?
- Write a short note on audit of stores and inventories in the context of Government Auditing
INTERNAL AUDIT AND COST AUDIT
- Explain about the applicability of Internal audit as per Companies Act, 2013.
- Entire SA 610.
- Will the concept of reporting of fraud under section 143(12) applicable to Internal auditor and cost auditor?
OTHER STANDARDS ON AUDITING
- With the reference to SA 250, give some examples or matters indicating to the auditor about non -compliance of laws & regulations by management.
- State the significant difficulties encountered during the audit with reference to SA-260 (communication with those charged with governance).
- Write about written communication of significant deficiencies in internal controls with those charged with governance and management as per SA 265.
- hat are the factors that are to be considered while designing a confirmation request? (SA 505)
- What is meant by external confirmation? Mention any eight situations where external confirmation may be useful for auditors. (SA 505)
- What are the factors that determine the extent of reliance that the auditor places on the results of analytical procedures? Explain with reference to SA-520 on “Analytical procedures”.
- Give a few examples of accounting estimates as per SA 540. (SA 540)
- Identification of significantly related party transaction outside the business. (SA 550)
- What are the steps to be followed by the auditor in identifying the subsequent events as per SA 560?
- Explain financial indicators and operating indicators to be considered by the auditor in assessing the appropriateness of going concern assumption as per SA 570: (SA^570)
- Explain various categories of written representations as per SA 580.
- As an auditor, how you will deal if management does not provide requested written representations? (SA 580)
We hope with the help of this article, now you know the what are the important topics in CA Inter Auditing and Assurance for May 2019 (सीए इंटर ऑडिटिंग इम्पोर्टेन्ट प्रश्न) attempt. People who are searching for the CA Inter Auditing important Questions for CA exam can utilize these questions for their exam preparation. Students should understand that it is not recommended to skip some topics and read only a few important ones. Try to cover entire Inter syllabus and that’s what ICAI expects from you and even CA Inter question papers are based on that. These important questions are for those students who don’t prepare well for the exam and try to get at least 40 marks. So don’t depend on these questions if you have so much time for the exams. If you have any doubts the comment below. We will try to help you. And don’t forget to share this article with your friends who are going to write CA Inter exams in May 2019.