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 standard governs the auditor's responsibility regarding laws and regulations in an audit of financial statements? SA 240 SA 250 SA 330 SA 450 None 2. Which SA focuses on communication with those charged with governance? SA 260 SA 265 SA 299 SA 315 None 3. SA 315 deals with: Materiality in planning and performing an audit Identifying and assessing risks of material misstatement Audit documentation External confirmations None 4. Which of the following is NOT a risk assessment procedure? Inquiry Observation Walkthrough Substantive testing None 5. SA 520 deals with: Analytical procedures Audit sampling Audit documentation Materiality None 6. Test of controls is conducted to: Identify risks Evaluate the design and operational effectiveness of controls Detect material misstatements Verify financial statements None 7. Which of the following is a substantive audit procedure? Observation Analytical procedures Walkthrough Internal controls testing None 8. Which method is NOT used in inventory valuation audit? FIFO LIFO Standard cost method Net realizable value only None 9. Vouching is primarily used to: Verify transactions with supporting documents Detect fraud Audit internal controls Plan audit strategies None 10. An auditor performs recalculation to: Verify accounting policies Detect fraud in balances Test mathematical accuracy of records Assess internal controls None 11. Which of the following must be retained as part of audit documentation? Audit plan Materiality levels set Evidence gathered All of the above None 12. The completion of audit documentation should occur within how many days of the audit report date? 30 days 45 days 60 days 90 days None 13. Permanent audit files include: Current year’s trial balance Articles of association Audit programs Management representation letter None 14. Working papers belong to: The client The auditor The company management The regulatory authority None 15. Audit documentation should provide: Evidence of the audit process Client’s financial position Compliance with tax regulations Management’s opinions None 16. An unmodified opinion is issued when: The financial statements are free from material misstatements There is significant doubt about the entity’s going concern A material misstatement exists but is not pervasive A disclaimer of opinion is warranted None 17. An adverse opinion is issued when: The financial statements are free from material misstatements The auditor is unable to obtain sufficient audit evidence There is a material and pervasive misstatement in financial statements None of the above None 18. Which standard governs the auditor’s responsibility to modify the opinion in the audit report? SA 705 SA 706 SA 570 SA 700 None 19. Which report is issued if the auditor is unable to obtain sufficient appropriate audit evidence? Qualified opinion Adverse opinion Disclaimer of opinion Unmodified opinion None 20. A Key Audit Matter (KAM) is reported under: SA 701 SA 705 SA 706 SA 720 None 21. Conflict of interest arises when: Auditor has a personal relationship with the client Auditor owns shares in the client company Auditor provides non-audit services to the client All of the above None 22. Professional misconduct is defined under: Schedule I and II of the CA Act, 1949 Companies Act, 2013 SEBI Act, 1992 Income Tax Act, 1961 None 23. A Chartered Accountant is prohibited from advertising under: Code of Ethics SEBI Regulations Banking Regulations Act Companies Act None 24. Confidentiality of client information can be breached when: Required by law Approved by the client Both a) and b None of the above None 25. Cooling-off period for an audit partner in a listed company after rotation is: 2 years 3 years 5 years No cooling-off period required None 26. Audit committees are mandatory for which companies? All private companies Listed companies and certain public companies All public companies None of the above None 27. One of the key responsibilities of an audit committee is to: Approve financial statements Oversee financial reporting process Manage day-to-day operations Conduct the statutory audit None 28. The role of an independent director in corporate governance is to: Represent the interests of promoters Ensure compliance with all taxation laws Protect the interests of stakeholders None of the above None 29. The CEO and CFO must certify financial statements under: Companies Act, 2013 SEBI (LODR) Regulations Income Tax Act, 1961 None of the above None 30. The Whistleblower Policy is part of: SEBI (LODR) Regulation CSR policies Companies Act, 2013 None of the above None 31. Forensic audit is primarily used in cases of: Inventory mismanagement Fraud and embezzlement Employee disputes None of the above None 32. The primary purpose of due diligence is to: Detect fraud Assess financial health for mergers and acquisitions Verify tax compliance Evaluate audit fees 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. Which standard deals with audit considerations for entities using service organizations? SA 402 SA 450 SA 500 SA 530 None 35. CARO 2020 requires the auditor to comment on: Fraud detection in the company Utilization of loans Related-party transactions Both (b) and (c) None 36. Which SA deals with subsequent events? SA 550 SA 560 SA 580 SA 540 None 37. An operational audit focuses on: Financial reporting Compliance with laws Efficiency and effectiveness of operations Tax compliance None 38. Related party transactions are reviewed under: SA 550 SA 570 SA 560 SA 705 None 39. Fraud triangle includes: Motive, opportunity, and rationalization Evidence, audit, and reporting Control, testing, and reporting Planning, execution, and reporting None 40. The PCAOB (Public Company Accounting Oversight Board) operates in: India USA UK Australia 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!