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. The primary objective of audit planning is to: Prepare audit documentation Determine materiality levels Perform the audit efficiently and effectively Reduce audit fees None 2. Materiality in planning and performing an audit is based on: Auditor’s judgment Company’s net profit Auditor’s independence Legal requirements None 3. Risk assessment procedures include all of the following EXCEPT: Inquiries of management Analytical procedures Test of controls Observation and inspection None 4. The preliminary assessment of risk of material misstatement is made during: Final audit Planning stage Reporting stage None of the above None 5. Which of the following is NOT considered in an audit risk model? Inherent risk Control risk Detection risk Strategic risk None 6. Who appoints the auditor for a government company? Shareholders Comptroller and Auditor General of India (CAG) Board of directors Audit committee None 7. Audit of Public Sector Undertakings (PSUs) is governed by: Companies Act, 2013 CAG guidelines Both a) and b) None of the above None 8. Which of the following is NOT a responsibility of the auditor in a bank audit? Verify statutory compliance Detect all frauds and errors Examine advances and NPAs Evaluate internal controls None 9. Audit of accounts of a Co-operative Society is conducted under the provisions of: Companies Act, 2013 Banking Regulation Act, 1949 State Co-operative Societies Act SEBI Regulations None 10. Which document is mandatory for an insurance audit? Insurance Premium Register Claims Register Reinsurance Treaties All of the above None 11. Independence of an auditor is impaired if: Auditor owns shares in the client company Auditor’s relative is an employee of the client Auditor is also providing management services All of the above None 12. Which of the following is a fundamental principle of professional ethics? Confidentiality Advocacy Inspection Self-interest None 13. Under the Code of Ethics, a Chartered Accountant must: Be a partner in more than one firm Not accept contingent fees for services Advertise freely Disclose client information to competitors None 14. A member of ICAI is prohibited from: Writing books on accounting Issuing certificates with false information Conducting training programs Providing investment advice None 15. The Disciplinary Committee of ICAI is constituted under: Schedule I of the CA Act Schedule II of the CA Act Section 21B of the CA Act, 1949 None of the above None 16. What does the term "audit evidence" refer to? Information obtained during the audit process The auditor’s opinion The financial statements The client’s internal control systems None 17. Which of the following is NOT an example of substantive audit procedures? Inspection of documents Observation of inventory count Walkthrough of processes Recalculation of amounts None 18. The primary responsibility for the prevention and detection of fraud lies with: The auditor Management and those charged with governance Internal auditors Employees None 19. External confirmations are used to obtain audit evidence for: Cash balances Debtor balances Bank loans All of the above None 20. Which standard covers audit evidence? SA 500 SA 505 SA 520 SA 530 None 21. Which SA deals with forming an opinion and reporting on financial statements? SA 700 SA 705 SA 706 SA 570 None 22. An Emphasis of Matter paragraph in the auditor’s report is governed by: SA 706 SA 705 SA 570 SA 700 None 23. When the financial statements do not comply with the applicable financial reporting framework, the auditor should issue: A disclaimer of opinion A qualified or adverse opinion An unmodified opinion with an Emphasis of Matter paragraph None of the above None 24. Which report includes the auditor's opinion on internal financial controls? Statutory audit report Internal audit report Tax audit report None of the above None 25. Audit working papers must: Be in a standardized format Provide evidence of audit procedures performed Be prepared by the client Include the financial statements None 26. Internal audit is mandatory for companies as per: Companies Act, 2013 SEBI Regulations Income Tax Act, 1961 None of the above None 27. Forensic audit primarily focuses on: Fraud prevention Fraud detection Financial reporting accuracy Tax planning None 28. Internal auditors report to: Management Shareholders Board of directors Audit committee None 29. The primary objective of a forensic audit is to: Express an opinion on financial statements Assist in legal proceedings Prepare financial forecasts Ensure tax compliance None 30. Which of the following is NOT a method used in forensic audits? Data mining Observation of inventory count Trend analysis Interviewing suspects None 31. Corporate Governance primarily involves: Management decision-making Board of directors’ accountability Compliance with taxation laws Human resource policies None 32. CSR reporting is governed by: Companies Act, 2013 SEBI Regulations Income Tax Act, 1961 None of the above None 33. Independent directors are mandatory for which companies? Private companies only All public companies Listed companies None of the above None 34. Which section of the Companies Act, 2013 deals with Corporate Social Responsibility (CSR)? Section 134 Section 135 Section 143 Section 148 None 35. The Audit Committee is mandatory for: All companies Listed companies and certain public companies Private companies only None of the above None 36. Which of the following is a limitation of audit? Test basis sampling Inherent limitations of internal controls Both a) and b) None of the above None 37. The objective of performance audits is to: Evaluate financial statements Assess the economy, efficiency, and effectiveness of activities Verify statutory compliance Detect fraud None 38. Fraud risk factors include: Incentive Opportunity Rationalization All of the above None 39. Audit of inventory involves: Inspection Observation Reconciliation All of the above None 40. Which of the following is NOT part of a statutory audit? Verification of assets Management accounting Analytical procedures Test of 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 !! 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