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. SA 299 deals with: Joint Audit of Financial Statements Planning an Audit of Financial Statements Risk Assessment Procedures Communication of Audit Findings None 2. Audit documentation must be retained for a minimum period of: 3 years 7 years 5 years 10 years None 3. Which SA focuses on the auditor’s responsibility regarding subsequent events? SA 500 SA 560 SA 570 SA 700 None 4. Substantive audit procedures are designed to detect: Control deficiencies Fraud Material misstatements in financial statements Management bias None 5. Materiality in auditing is primarily concerned with: Errors affecting management decisions Errors affecting the auditor's opinion Errors affecting the overall financial statements All of the above None 6. Which of the following is NOT a type of audit evidence? Documentary evidence Verbal explanations from management Physical verification Logical reasoning None 7. SA 240 deals with the auditor’s responsibility relating to: Detection of fraud and errors Planning the audit Materiality Understanding the entity None 8. Inherent risk is higher when: Complex transactions are involved Controls are effective There is no estimation involved Transactions are simple None 9. The key objective of an audit engagement letter is to: Define the auditor's scope of work Limit the auditor's liability Secure management approval Confirm fees for the audit None 10. Which of the following is NOT a component of audit risk? Inherent risk Detection risk Control risk Financial risk None 11. The financial statements are primarily the responsibility of the: Auditor Management Board of Directors Audit Committee None 12. Which of the following matters is required to be reported under CARO 2020? Pending legal disputes Fraud reporting Loans to related parties All of the above None 13. The tenure of a statutory auditor in a listed company cannot exceed: 3 years 5 years 7 years 10 years None 14. The statutory audit of a government company is conducted by: The company's internal auditor The Comptroller and Auditor General (CAG) A private auditor appointed by the company The Reserve Bank of India None 15. As per the Companies Act, 2013, the statutory auditor’s report must include: A statement on compliance with accounting standards An evaluation of management’s performance A commentary on industry performance None of the above None 16. The term "going concern" is related to: Business continuity Profitability Financial stability Internal control systems None 17. Audit committees are mandatory for: All private companies Listed companies and public companies with specified thresholds All companies with turnover above INR 5 crore Non-profit organizations None 18. Which of the following is NOT included in the scope of statutory audit? Verification of financial records Evaluation of internal controls Detecting all frauds Examining compliance with law None 19. Which section of the Companies Act, 2013 deals with fraud reporting by the auditor? Section 139 Section 143(12) Section 147 Section 148 None 20. Internal control systems are evaluated by the auditor to: Detect frauds Understand risk factors Plan substantive procedures Both (b) and (c) None 21. Which of the following is NOT considered professional misconduct? Breach of confidentiality Delay in filing tax returns Advertising for services Charging contingent fees None 22. A CA must not hold shares in an audit client if: The shares are inherited The shares were purchased after the audit assignment The shares exceed 1% of paid-up capital The shares are held indirectly through mutual funds None 23. As per the ICAI Code of Ethics, a CA should NOT accept an engagement if: The client has a history of fraud The engagement involves management decisions The fees are below market rates The client requests a quick turnaround time None 24. The principle of "due care" requires that a CA: Charges reasonable fees Maintains professional skepticism Exercises skill and diligence in their work Respects client confidentiality None 25. Advertising by a CA is permissible for: Statutory audits CSR audits Permitted certifications under regulatory guidelines Any financial service None 26. The audit of an NBFC is governed by: SEBI Regulations Companies Act and RBI Guidelines Income Tax Act IRDA Act None 27. Forensic audits are conducted primarily to: Evaluate profitability Detect frauds and irregularities Improve operational efficiency Assess financial stability None 28. Tax audits under Section 44AB are applicable to entities with turnover exceeding: INR 50 lakh INR 5 crore INR 1 crore (with exceptions) INR 10 crore None 29. An investigation differs from an audit as it focuses on: Compliance with accounting standards Detecting specific frauds or irregularities Assessing internal controls Verifying asset valuations None 30. Audit of insurance companies is governed by: Companies Act, 2013 IRDA Act, 1999 Banking Regulation Act, 1949 SEBI Regulations None 31. Key audit matters are disclosed in the audit report for: Listed companies Government entities Small private companies All entities None 32. Peer reviews focus on: Compliance with technical and ethical standards Reviewing statutory audit reports Improving management efficiency Evaluating audit fees charged None 33. An auditor is required to maintain audit documentation for: Litigation purposes only Regulatory requirements Both (a) and (b) None of the above None 34. The role of an internal auditor is defined by: Audit standards The management SEBI regulations The statutory auditor None 35. Material misstatements are evaluated based on: Quantitative factors Qualitative factors Both (a) and (b) Management discretion None 36. The term "scope limitation" refers to: An inability to detect all frauds Restrictions imposed by management or circumstances Reduced auditor fees None of the above None 37. SA 330 addresses: Auditor's responses to assessed risks Evaluation of control deficiencies Subsequent events Communication with those charged with governance None 38. What is NOT a principle of independence for auditors? Objectivity Familiarity Professional skepticism Integrity None 39. Subsequent events that occur after the audit report date require: Reissuance of financial statements Review by the auditor No further action Notification to shareholders None 40. The responsibility for ensuring compliance with laws and regulations rests with: The auditor The management The audit committee The shareholders 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!