hitechpathshala

Q. 1

When planning the audit,

the auditor considers what would make the financial information materiallymisstated.

the auditor need not consider what would make the financial information materially misstated.

the auditor need not consider what would make the financial information materially misstated at planning stage

the auditor needs to consider what would make the financial information materially misstated while conducting audit only

Q. 2

With reference to SA 300, the auditor shall document:

The overall audit strategy

The audit plan

Any significant changes made during the audit engagement to the overall audit strategy or the audit plan, and the reasons for such changes.

All of the above

Q. 3

Planning an audit involves

establishing the overall audit strategy for the engagement and developing an audit plan.

establishing the overall audit plan for the engagement and developing an auditstrategy.

establishing the overall audit plan for the engagement

developing an audit strategy.

Q. 4

According to SA 300,

planning is not a continual and iterative phase of an audit, but rather a discrete process

planning is not a discrete phase of an audit, but rather a continual and iterative process

planning is not continual and iterative process

planning is not a discrete phase of an audit

Q. 5

The auditor shall update and change as necessary during the course of the audit.

overall strategy

the overall audit strategy and the audit plan

audit plan

audit program

Q. 6

CA R illustrated to his team that the utility of the Audit Programme can be retained and enhanced only by keeping the programme as also the client’s operations and internal control under recurrent assessment. Which attribute of the Audit Programme is highlighted here?

Static Review

Mechanical Review

Periodic Review

Obsolete Review

Q. 7

The agreed terms of the audit engagement shall be recorded in an audit engagement letter or other suitable form of written agreement and shall include:
(i) The objective and scope of the audit of the financial statements;
(ii) The responsibilities of the auditor;
(iii) The responsibilities of management;
(iv) Identification of the applicable financial reporting framework for the preparation of the financial statements; and
(v) Reference to the expected form and content of any reports to be issued by the auditor and a statement that there may be circumstances in which a report may differ from its expected form and content.
Which of the following is correct?

(i),(ii),(iii)

(i),(ii),(iii), (iv), (v)

(iz), (ii), (iv), (v)

(i),(ii),(iii), (iv)

Q. 8

sets the scope, timing & direction of the audit and guides the development of the more detailed plan.

Audit Programme

Overall Audit Strategy

Completion Memorandum

Audit Plan

Q. 9

The overall audit strategy and the audit plan remain the responsibility.

auditor’s

management’s

those charged with governance.

both management and those charged with governance.

Q. 10

Which of the following statements is MOST APPROPRIATE?

Audit programme is a detailed plan of audit strategy

Audit programme cannot be reviewed

Audit programme is a detailed plan of applying audit procedures

Audit programme is relevant for year for which it is prepared, it is useless for subsequent years.

AUDIT STRATEGY, AUDIT PLANNNG AND AUDIT PROGRAMME

Marks: 10