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 "Auditor’s Responsibility in Relation to Fraud in Financial Statements"? SA 315 SA 240 SA 330 SA 200 None 2. The term "audit sampling" is defined in: SA 500 SA 530 SA 320 SA 700 None 3. The primary objective of analytical procedures during the planning stage is to: Perform substantive testing Identify areas of potential risk Detect fraud Document internal controls None 4. Which of the following is NOT a type of audit procedure? Inspection Recalculation Sampling Collaboration None 5. SA 610 pertains to: Audit sampling Internal controls Using the Work of Internal Auditors External confirmations None 6. When auditing related-party transactions, the auditor should: Ignore transactions below materiality thresholds Assess the risk of misstatement due to fraud Ensure transactions are at arm’s length Both (b) and (c) None 7. What is NOT a characteristic of sufficient audit evidence? Reliable Reproducible Relevant Persuasive None 8. Which of the following factors increases detection risk? Ineffective audit procedures High inherent risk Weak internal controls All of the above None 9. Material misstatements due to fraud may result from: Incorrect estimates Misappropriation of assets Oversight by management Non-compliance with laws None 10. When an auditor issues a disclaimer of opinion, it indicates: Financial statements are materially misstated The auditor has a conflict of interest The auditor could not obtain sufficient audit evidence None of the above None 11. Which section of the Companies Act, 2013 deals with "Auditor Not to Render Certain Services"? Section 141 Section 144 Section 143 Section 140 None 12. The maximum fine for an auditor convicted of professional misconduct under the Companies Act, 2013 is: INR 5 lakh INR 10 lakh INR 25 lakh INR 50 lakh None 13. Rotation of auditors is mandatory for: Only listed companies All public companies Certain classes of companies prescribed by law All companies None 14. The statutory auditor of a company cannot render which of the following services? Internal audit Management services Bookkeeping services All of the above None 15. Which section of the Companies Act, 2013 relates to reporting on frauds? Section 143(12) Section 139(9) Section 140(4) Section 142(8) None 16. Which of the following companies is required to establish a Vigil Mechanism? Only listed companies Listed companies and certain public companies All private companies Companies with paid-up capital exceeding INR 5 crore None 17. Audit reports of listed companies must include a statement on compliance with: Corporate governance norms Tax laws GST regulations Related-party transactions None 18. In case of fraud exceeding INR 1 crore, the auditor must report it to: Shareholders Board of Directors Central Government Registrar of Companies None 19. The responsibility of preparing financial statements lies with: The auditor Management Audit committee Shareholders None 20. Which of the following is NOT professional misconduct? Accepting contingent fees Advertising professional services Using professional skills for non-audit services Breaching confidentiality without client consent None 21. A CA in practice is prohibited from: Engaging in business Conducting management audits Giving expert opinions Holding investments in listed companies None 22. Professional skepticism requires: Complete trust in management Critical assessment of audit evidence Ignoring inherent risks Blind reliance on internal controls None 23. An auditor should NOT accept an engagement if: The client’s financial records are disorganized Management imposes significant scope limitations The engagement involves tax planning The client is new None 24. As per the ICAI Code of Ethics, an auditor must maintain working papers for: 5 years 7 years 10 years 12 years None 25. Forensic audits are most commonly used to: Verify internal controls Assess compliance with standards Investigate frauds and irregularities Improve business efficiency None 26. Bank audits are governed under the: Companies Act, 2013 Banking Regulation Act, 1949 SEBI Regulations Income Tax Act None 27. The audit of insurance companies is governed by: IRDA Act, 1999 Companies Act, 2013 SEBI Guidelines RBI Act None 28. Under Section 44AB of the Income Tax Act, tax audit is mandatory if turnover exceeds: INR 1 crore (with exceptions) INR 5 crore INR 10 crore INR 2 crore None 29. In the context of NBFCs, the audit includes compliance with: Banking guidelines RBI Guidelines IRDA Guidelines SEBI Regulations None 30. Key audit matters are disclosed in the audit report under: SA 700 SA 701 SA 705 SA 706 None 31. An investigation differs from an audit as it: Is focused on fraud detection Is a routine process Does not require professional judgment Focuses on ensuring compliance with laws None 32. The audit of co-operative societies is governed by: State Co-operative Societies Act Banking Regulation Act Companies Act, 2013 Income Tax Act None 33. Peer review in auditing refers to: Examination of the audit report by peers in the same firm Evaluation of one auditor's work by another qualified auditor to ensure quality Review of audit work by management None of the above None 34. 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 35. When the scope of audit is restricted by management, the auditor may: Issue a qualified opinion Issue a disclaimer of opinion Both (a) and (b) Resign immediately None 36. Which of the following is NOT a part of the audit plan? Risk assessment procedures Nature and extent of audit procedures Management’s plans Audit timelines None 37. SA 230 pertains to: Audit documentation Fraud detection Risk assessment Communication with management None 38. The concept of "true and fair view" implies: Compliance with laws Material accuracy in financial statements Correct valuation of assets Both (a) and (b) None 39. Which of the following is NOT a limitation of an audit? Sampling risk Auditor’s independence Inherent limitations of internal controls Subjectivity in estimates None 40. Which of the following is NOT a requirement of CARO 2020? Details of immovable property Compliance with CSR rules Reporting on frauds Utilization of borrowed funds 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!