Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Indirect Tax LawsTotal 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 auditing standard deals with the responsibilities of the auditor relating to fraud in an audit of financial statements? SA 240 SA 250 SA 315 SA 500 None 2. Which of the following is the primary objective of an audit? Detection of fraud Expression of opinion on financial statements Preparation of accounts To verify payment of taxes None 3. As per SA 530, an auditor uses sampling to reduce the risk of: Material misstatement Audit risk Detection risk Non-sampling risk None 4. Which of the following is NOT a type of audit opinion? Unmodified opinion Qualified opinion Conditional opinion Adverse opinion None 5. SA 299 deals with: Joint Audit of Financial Statements Planning an Audit of Financial Statements Risk Assessment Procedures Communication of Audit Findings None 6. CARO 2020 applies to: All companies Small companies Listed companies and specified categories Private companies only None 7. In case of a bank audit, the primary focus is on: Profitability Adherence to banking regulations Customer satisfaction Fraud detection None 8. Which entity is subject to tax audit under Section 44AB of the Income Tax Act, 1961? Companies only Partnership firms only Individuals exceeding a certain turnover limit All entities None 9. An auditor of an NBFC must adhere to: Companies Act, 2013 RBI Act, 1934 SEBI Regulations Both a) and b) None 10. The audit of insurance companies is governed by: IRDA Act, 1999 Companies Act, 2013 SEBI Guidelines RBI Act None 11. Which of the following is NOT a threat to auditor independence? Self-interest threat Advocacy threat Inspection threat Familiarity threat None 12. The Code of Ethics is issued by: ICAI SEBI RBI MCA None 13. What is the cooling-off period for a partner of an audit firm before joining a client as an employee? 1 year 2 years 3 years No such restriction None 14. Under the Code of Ethics, a professional accountant is required to comply with which fundamental principle? Objectivity Integrity Professional competence and due care All of the above None 15. What is the penalty for a Chartered Accountant found guilty of misconduct under Schedule I of the CA Act, 1949? Suspension of membership Fine and imprisonment Reprimand or removal of name Both a) and c) None 16. Which SA governs the audit documentation requirements? SA 230 SA 500 SA 315 SA 320 None 17. The going concern assumption is audited under which standard? SA 560 SA 570 SA 580 SA 500 None 18. The primary purpose of audit working papers is to: Satisfy the client’s requirements Facilitate the preparation of financial statements Provide evidence of audit work and support the audit report Determine audit fees None 19. Audit documentation must be retained for how many years as per ICAI guidelines? 5 years 7 years 10 years No specific limit None 20. An audit report must include: An auditor's opinion Details of audit procedures Profit and loss details None of the above None 21. Which standard covers the auditor's responsibility for understanding the entity and its environment? SA 200 SA 315 SA 240 SA 260 None 22. Internal control systems are designed to: Eliminate risks entirely Provide reasonable assurance about the achievement of objectives Detect fraud and errors exclusively Ensure profit maximization None 23. Which is NOT a component of internal control? Control environment Risk assessment Materiality Information system None 24. The inherent limitations of internal control include: Collusion among employees Management override Both a) and b) None of the above None 25. Risk of material misstatement exists at: Overall financial statement level Assertion level Both a and b None of the above None 26. The confidence level in audit sampling refers to: Sample size Auditor's assurance in conclusions Population variability None of the above None 27. In substantive testing, the primary objective is to: Identify fraud Evaluate control design Detect material misstatements Test internal controls None 28. The sample size in audit depends on: Audit risk Materiality Risk of material misstatement All of the above None 29. Stratification in sampling means: Dividing the population into sub-populations Ignoring irrelevant items Increasing sample size Eliminating non-material items None 30. What is the term for auditing the financial statements prepared under a framework other than GAAP? Compliance audit Special purpose audit Forensic audit Statutory audit None 31. Which law governs forensic audits in India? Companies Act, 2013 Indian Evidence Act, 1872 Both a) and b) None of the above None 32. Auditing around the computer involves: Using test data Ignoring automated controls Focusing on output Testing internal controls None 33. Which standard deals with the communication of key audit matters? SA 701 SA 705 SA 570 SA 520 None 34. 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 35. Which of the following is NOT part of audit planning? Identifying material areas Finalizing the audit report Assessing risks Determining materiality None 36. The cut-off procedure ensures that: Revenues and expenses are recognized in the proper period Depreciation is calculated correctly Transactions are recorded in the correct account None of the above None 37. Fraudulent financial reporting primarily involves: Misappropriation of assets Collusion among employees Intentional misstatements in financial statements Errors in accounting estimates None 38. A Management Representation Letter is governed by: SA 580 SA 500 SA 300 SA 560 None 39. Which of the following is a type of assurance engagement? Agreed-upon procedures Compilation engagement Review engagement All of the above None 40. Which of the following is an analytical procedure? Observation of inventory count Comparison of financial ratios Recalculation of depreciation Examining board minutes 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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