hitechpathshala

Q. 1

Standard on Quality Control (SQC) 1 provides that,

unless otherwise specified by law or regulation, audit documentation is the property of the management.

unless otherwise specified by law or regulation, audit documentation is the property of those charged with governance.

unless otherwise specified by law or regulation, audit documentation is the property of the auditor

Q. 2

As per SQC 1 the retention period for audit engagements ordinarily is no shorter than from the date of the auditor’s report.

ten years

five years

seven years

four years

Q. 3

In relation to completed engagements, procedures designed to provide evidence of compliance by engagement teams with the firm’s quality control policies and procedures is known as :

Monitoring

Inspection

Subsequent Audit procedures

Compliance procedures

Q. 4

_____requires firms to establish policies and procedures for the retention of _. The retention period for audit engagements ordinarily is no shorter than from the date of the auditor’s report, or, if later, the date of the group auditor’s report

SA 220, audit evidence, six years

SA 200, audit documentation, seven years

SQC 1, engagement documentation, seven years

SA 230, documentation, six years

Q. 5

. In relation to completed engagements, procedures designed to provide evidence of compliance by engagement teams with the firm’s quality control policies and procedures is known as:

Monitoring

Inspection

Subsequent Audit procedures

Compliance procedures.

Q. 6

Mr. Salman, is an engagement partner of Khan & co. chartered accountants for an audit of Lava Ltd., he died of a stroke on 30.09.2019 after completing the entire routine audit work of Lava Ltd. Mr. Shoji, one of the partners of Khan & Co. will be signing the accounts of Lava Ltd. What is the course of action to be taken by Mr. Shoaib ?

Sign the accounts of Lava Ltd without reviewing the work of his partner

Sign the balance sheet after reviewing the work of his partner

Withdraw the audit as the person who has performed the audit is no more

Issue an adverse report.

CH - 11 ETHICS AND TERMS OF AUDIT ENGAGEMENTS

Marks: 6