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. Which SA deals with "Materiality in Planning and Performing an Audit"? SA 530 SA 320 SA 240 SA 200 None 2. Which audit procedure is performed to test the operational effectiveness of controls? Substantive testing Analytical procedures Test of controls External confirmations None 3. According to SA 330, the auditor's response to assessed risks should: Be proportionate to the level of risk Always involve substantive testing Ignore low-risk areas Depend on management's request None 4. The phrase "true and fair view" is associated with: Compliance with legal requirements Auditor’s report on financial statements Risk management policies Fraud detection methods None 5. The term "audit risk" includes all EXCEPT: Detection risk Business risk Control risk Inherent risk None 6. Analytical procedures can be performed during which stages of the audit? Planning stage only Fieldwork stage only Planning, execution, and conclusion stages Conclusion stage only None 7. Audit evidence is considered sufficient if it is: Adequate to support the audit opinion Complete for all transactions From reliable internal sources Verified by management None 8. The primary objective of risk assessment procedures is to: Identify potential frauds Assess the risk of material misstatement Reduce audit risk to zero Ensure compliance with laws None 9. Reporting on internal financial controls is mandatory for: All private companies Listed companies and certain public companies Banking companies Non-banking financial companies None 10. CARO 2020 requires the auditor to comment on: Fraud detection in the company Utilization of loans Related-party transactions Both (b) and (c) None 11. The maximum tenure for an individual as an auditor of a company is: 3 years 5 years 10 years Unlimited None 12. Rotation of auditors is required under: Section 139 of the Companies Act, 2013 Section 143 of the Companies Act, 2013 Section 144 of the Companies Act, 2013 Section 140 of the Companies Act, 2013 None 13. An auditor is required to report fraud involving amounts exceeding INR 1 crore to: Board of Directors Audit Committee Central Government Registrar of Companies None 14. Which of the following is NOT a related-party transaction as per Companies Act, 2013? Loans to directors Sale of goods to subsidiaries Reimbursement of expenses Rent paid to directors None 15. Audit reports on financial statements must include: Basis of audit opinion Details of tax assessments Compliance with GST regulations Client’s marketing strategies None 16. Accepting a gift from a client during audit engagement is considered: A conflict of interes Professional misconduct A breach of independence All of the above None 17. As per ICAI guidelines, audit fees must NOT be: Contingent on profit levels Higher than market standards Paid in installments Fixed annually None 18. A chartered accountant can accept directorship in a company if: The company is a public company The company is not his audit client He resigns from all professional engagements He owns shares in the company None 19. Disclosure of client information by an auditor is permissible when: Required by law Permitted by the client To defend the auditor in court All of the above None 20. Which of the following is NOT a clause of professional misconduct? Clause 6 of Part I of the First Schedule Clause 8 of Part I of the First Schedule Clause 10 of Part I of the First Schedule Clause 4 of Part II of the First Schedule None 21. Tax audit is required for individuals with turnover exceeding: INR 1 crore INR 5 crore INR 10 crore INR 50 lakh None 22. Forensic audits primarily focus on: Financial statement frauds GST compliance Operational efficiency Tax planning None 23. Audit of insurance companies is governed by: Insurance Act, 1938 Companies Act, 2013 IRDA Act, 1999 Both (a) and (c) None 24. Which of the following is true for an NBFC audit? It follows banking audit guidelines. It includes specific RBI reporting requirements. It does not include statutory reporting. It is optional for small NBFCs None 25. Which of the following is NOT included in peer review? Compliance with technical standards Performance of non-audit assignments Independence of the auditor Fees charged to the client None 26. As per SA 550, related-party transactions should be: Always tested using substantive procedures Considered for fraud risks Disregarded if immaterial Identified through external confirmations only None 27. Key audit matters are required to be reported for: All audits Only listed company audits All public companies Small private companies None 28. SA 230 deals with: Auditor’s responsibility to consider fraud Audit documentation Subsequent events Communication with those charged with governance None 29. Which of the following is an auditor’s primary responsibility? Preparing financial statements Detecting immaterial errors Expressing an opinion on financial statements Preparing tax returns None 30. Audit of co-operative societies is governed by: State Co-operative Societies Act Companies Act, 2013 Reserve Bank of India Act Income Tax Act None 31. Which of the following SAs deals with "Using the Work of an Expert"? SA 500 SA 600 SA 620 SA 610 None 32. Under SA 540, the auditor’s responsibility concerning accounting estimates includes: Forming the estimates on behalf of management Reviewing the process used by management to develop the estimate Ignoring estimates that are immaterial Preparing management's assumptions for the estimates None 33. SA 210 requires the auditor to agree on terms of audit engagement with: The Board of Directors The Audit Committee Those charged with governance and management The shareholders None 34. Which of the following is NOT a type of substantive procedure? Inspection Observation Analytical review Confirmation None 35. As per Section 143(11) of the Companies Act, 2013, the auditor is required to report on matters specified in: The Tax Audit Report The CARO Order The Annual General Meeting The Income Tax Act None 36. Which of the following companies is exempt from CARO 2020? Listed companies Private companies with turnover exceeding INR 10 crore Private companies with no borrowings and turnover less than INR 1 crore All NBFCs None 37. A chartered accountant is allowed to perform which of the following services for an audit client? Tax representation Bookkeeping Internal audit Management decision-making None 38. Accepting an engagement without adequate resources and expertise is a violation of: SA 200 The principle of professional competence and due care The principle of integrity Clause 9 of Part I of the First Schedule of ICAI Code of Ethics None 39. Which of the following is a mandatory requirement for audits of public sector enterprises? Compliance with CARO 2020 Submission to CAG for supplementary audit Application of Ind AS only Reporting only on internal controls None 40. An investigation focuses on: Providing assurance to stakeholders Discovering frauds or irregularities Expressing an opinion on financial statements Evaluating internal controls 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. Few seconds left. 1 2 3 4 Time's upYou cannot switch tabs while taking this quiz!You are not allowed to switch tabs violation has been recorded.you cannot minimize full screen mode!You are not allowed to minimize full screen while taking this quiz, violation has been recorded.Access denied! To begin the quiz, please grant this quiz access to your camera.Time is Up!Time is Up!
