Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Advanced Auditing, Assurance and Professional EthicsTotal Number of Question: 40Time: 41 MinutesPlease check your email after completion of test for result.All the best... Name Phone No Email State 1. Audit working papers are the property of the: Client Auditor Management CGovernment None 2. Which of the following is NOT a principle governing an audit? Confidentiality Independence Advocacy Professional skepticism None 3. According to SA 500, audit evidence must be: Sufficient and reliable Sufficient only Reliable only Relevant and comprehensive None 4. Which of the following is an inherent limitation of an audit? Professional judgment Sampling risk Systematic errors Auditor independence None 5. SA 315 deals with identifying and assessing risks of material misstatement through understanding the: Audit environment Internal controls Entity and its environment Audit procedures None 6. As per the Companies Act, 2013, which company is required to appoint an internal auditor? Listed companies only All companies Companies with specified thresholds in turnover, loans, or paid-up capital Section 8 companies None 7. The statutory auditor must submit a report on financial statements under: Section 143(3) of the Companies Act, 2013 Section 144 Section 141 Section 140 None 8. Which of the following is NOT a duty of the auditor under the Companies Act, 2013? Reporting frauds to the Central Government Reviewing corporate governance compliance Checking managerial remuneration Verifying related-party transactions None 9. Audit of government companies is done by: Chartered accountants only Comptroller and Auditor General (CAG) Registrar of Companies Tax auditors None 10. The term "true and fair view" refers to: Accuracy of financial data Compliance with internal policies Compliance with accounting standards Financial statements free from material misstatement None 11. As per ICAI Code of Ethics, a CA should NOT accept an engagement where: The client is uncooperative There is a conflict of interest The CA lacks the resource All of the above None 12. Under the ICAI Code of Ethics, independence is primarily required in: Tax advisory services Management consulting Statutory audit services Internal audit None 13. Advertising by CAs is prohibited under: Clause 6 of Part I of the First Schedule Clause 4 of Part II of the Second Schedule Clause 7 of Part II of the First Schedule None of the above None 14. Professional misconduct does NOT include: Breach of confidentiality Failure to report fraud Accepting contingent fees for tax advisory Delayed payment of subscription fees to ICAI None 15. Which of the following is NOT covered under professional ethics? Independence Tax planning Due care Confidentiality None 16. Audit of banks is performed as per: Banking Regulation Act, 1949 Companies Act, 2013 Indian Contract Act RBI Act None 17. Tax audits are governed under: Section 144 of the Companies Act Section 44AB of the Income Tax Act Section 45 of the Banking Regulation Act Section 143 of the Companies Act None 18. A forensic audit focuses primarily on: Compliance with standards Detection of fraud and irregularities Internal control review Tax calculations None 19. An auditor is disqualified under Section 141(3) of the Companies Act, 2013, if: The auditor is indebted to the company beyond a prescribed limit The auditor lacks technical expertise The auditor is employed elsewhere Both (a) and (c) None 20. Audit of NBFCs is governed by: SEBI Regulations RBI Guidelines Companies Act, 2013 Banking Regulation Act, 1949 None 21. Which of the following is NOT a requirement of audit documentation? Confidentiality Completeness Timeliness Legality None 22. Permanent audit files typically include: Current year financials Engagement letter Audit plan Audit report None 23. Audit sampling is used to: Reduce audit risk to zero Evaluate entire populations Test less than 100% of items in a population Document audit evidence None 24. Which of the following methods is NOT used in audit sampling? Random sampling Analytical sampling Analytical sampling Haphazard sampling None 25. The main objective of peer review is to ensure: Profitability of audit firms Quality of audit services Independence of audit committees Client satisfaction None 26. CARO 2020 applies to: All companies Small companies Listed companies and specified categories Private companies only None 27. Which of the following is NOT an assertion about account balances at the period end? Existence Completeness Classification Rights and obligations None 28. The auditor’s responsibility for other information included in the annual report is described in: SA 720 SA 500 SA 700 SA 505 None 29. As per SA 570, "Going Concern," the auditor should: Assume the entity will remain a going concern Ignore going concern assumptions unless doubts arise Always express a modified opinion if doubts exist Obtain management's assessment of going concern assumptions None 30. SA 240 requires auditors to: Detect all frauds in financial statements Design audit procedures to identify fraud and error risks Report frauds directly to the board of directors Ignore fraud if immaterial None 31. As per the Companies Act, 2013, rotation of auditors is applicable to: All private companies Only listed companies Listed and certain public companies All companies irrespective of size None 32. Audit of consolidated financial statements requires: Compliance with SA 700 only Review of component auditors’ work Separate audit reports for subsidiaries No reference to parent auditors None 33. Audit report on financial statements of a company must include: Auditor’s name and signature Auditor’s observations on corporate governance Statement of compliance with SEBI regulations Summary of significant events during the year None 34. Which of the following is true about CARO 2020 reporting? It is applicable to all companies. It replaces statutory audit requirements. It includes reporting on internal audit systems It excludes reporting on related-party transactions None 35. The term “key audit matters” as per SA 701 refers to: Material misstatements Matters of most significance in the audit Internal control deficiencies Significant fraud identified None 36. A CA should NOT undertake an engagement where: The client offers a low fee There is a significant conflict of interest The work is time-bound The client insists on pre-issuance approval None 37. Advertising by a CA is permissible for: Statutory audits Internal audits Permitted certifications only Any professional services None 38. A chartered accountant may retain client records if: The client has unpaid fees The records pertain to the CA's working papers It is necessary for reporting fraud Records are critical for ongoing litigation None 39. Accepting an audit engagement with a contingent fee arrangement is: Allowed in special cases Permissible under certain ethics guidelines Prohibited under the ICAI Code of Ethics Acceptable for non-audit services None 40. In case of a conflict between client confidentiality and legal requirements, a CA should: Prioritize client confidentiality Follow legal and regulatory requirements Seek consent from the client Refuse to disclose any information None 1 out of 4 Great job on taking the INCOC Test! We appreciate your interest in test.Look out for results and future opportunities.Stay Connected !! Your quiz time is about to finish. 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