Commerce Dada

501. Which of the following is not as example of accounting estimate a) Warranty obligation b) Outcome of long term contracts c) Selection of accounting policies d) Financial obligations/cost arising from litigation settlements and judgements. 502. Matters that the auditor may consider in evaluating the reasonableness of the assumptions used by management include: a) Whether individual assumptions appear reasonable b) Whether the assumptions are interdependent and internally consistent c) In the case of fair value accounting estimates, whether the assumptions appropriately reflect observable market place assumptions d) All of above 503. In case of accounting estimates, the auditor shall perform the following if he faces any significant risk: a) Examine alternative assumption b) Develop a range c) Consider whether management has been biased d) All of above 504. If there is any material difference between the auditor’s range concluded by the auditor and the estimate made by management in...

  401. In stratified random sampling a) Sample is taken from whole of the population b) It requires special attention to judge contents of stratum c) There is application of different concept and not an extension of simple random sampling d) All of these 402. Tolerable error is _______________ in population that auditor is willing to _______________ for a given sample size. a) Minimum, Forego b) Maximum, Forego c) Minimum, Accept d) Maximum, Accept 403. The kind of relationship between tolerable error and sample size is a) Inverse b) Direct c) They both are same d) There is no relationship as such 404. Which of the following SAs deals with auditor’s responsibilities to evaluate the effect of identified misstatements a) SA 330 RATHORE INSTITUTE CA. NITIN GUPTA b) SA 500 c) SA 505 d) SA 450 405. Misstatements may result from: a) An inaccuracy in gathering or processing data from which financial statements are prepared b) An omission of an amount or disclosure c) An incorrect accounti...

  451. If auditor is unable to obtain sufficient appropriate audit evidence with respect to any material item(s) of the financial statements and possible effect if material but not pervasive, he shall express a) Unmodified opinion b) Adverse opinion c) Disclaimer of opinion d) Qualified opinion 452. If auditor is unable to obtain sufficient appropriate audit evidence with respect to any material item(s) of the financial statements and possible effect if pervasive, he shall express a) Unmodified opinion b) Adverse opinion c) Disclaimer of opinion d) Qualified opinion 453. Which of the following SAs deals with auditor’s responsibilities for forming an opinion and reporting on financial statements a) SA 700 b) SA 701 c) SA 705 d) SA 706 454. Which of the following is title of auditor’s report a) Auditor’s Report b) Independent Auditor’s Report c) Audit Report on the Financial Statements d) Reporting on the Financial statements 455. As per SA 700, which of the following is addressee of...

 

 

 

  351.As per SQC-1 “An appropriate time limit within which to complete the assemble of the final audit file is ordinarily not more than _____ days after the date of auditor’s report.  a) 30  b) 60  c) 90 d) 45  352.As per SQC-1, auditor should retain audit documentation for at least _________ years  a) 5  b) 6  c) 7  d) 8  353.Which of the following factors may affect the form, content and extent of audit documentation:  a) Size and complexity of the entity  b) Identified risk of material misstatements  c) Significance of audit evidence obtained  d) All of above  354.Audit documentation can be made by auditor: a) Paper mode  b) Electronic mode  c) Both (a) and (b)  355.Who is the owner of audit working papers?  a) Auditee  b) Auditor  c) (a) and (b)   d) ICAI  356.Additional numbers of purposes served by audit documentation are:  a) Enabling the engagement team t...