311. In a __ performance audit, the starting point is a known or suspected deviation from what should or could be.
A. system-oriented approach
B. result-oriented approach
C. problem-oriented approach
D. All of the above

312. Find the incorrect one.
A. Audits can be pursued from a top-down or bottom-up perspective.
B. Top-down audits concentrate mainly on the requirements, intentions, objectives and expectations of the legislature and central government.
C. A bottom-up perspective focuses on problems of significance to people and the community.
D. None of the above

313. What are the reasons why a regular communication is of particular importance in performance audit?
A. As performance audits are not normally conducted on a regular (e.g. annual) basis on the same audited entities, channels of communication may not already exist. While there may be contacts with the legislature and government bodies, other groups (such as academic and business communities or civil society organisations) may not have been engaged with previously.
B. Often there are no predefined criteria (such as a financial reporting framework), and therefore an intensive exchange of views with the audited entity is necessary.
C. An active effort is required to obtain insight into the points of view of the various stakeholders to bring out a balanced report.
D. All of the above

314. Which is not correct about Strategic Audit planning?
A. Strategic Audit planning is the process of determining the goals for the Department and the best approach for attaining them.
B. The goals should be long term.
C. The goals may be long as well as short term.
D. The field audit offices are also required to prepare their audit plans with reference to the Department’s strategic audit plan.

315. The Department’s Senior Management may conduct brainstorming meetings with Accountants General from time to time in respect of strategic audit and annual audit plans to select the subjects which address the Department’s concerns for high risk programmes and activities. Senior Management comprises-
A. C&AG of India, Deputy C&AG and Additional Deputy C&AG.
B. C&AG of India and Deputy C&AG.
C. Deputy C&AG and Additional Deputy C&AG.
D. C&AG

316. _ of a subject is an assessment of the interest it generates in the general public and the legislature.
A. Materiality
B. Significance
C. Visibility
D. Scope

317. Before implementing the performance audit, it is important to identify the audit objectives, the scope and the methodology to achieve the objectives of a particular performance audit. This is often done in the form of-
A. Pilot study
B. Preparation of Audit Design Matrix
C. Determining audit criteria
D. Planning individual performance audits

318. Find the incorrect one regarding Pilot Study?
A. The purpose of this study is to establish whether the conditions for carrying out a performance audit exist and, if they do exist, to produce an audit proposal.
B. It provides background knowledge and information needed to understand the entity, program, or function.
C. At the end of the study, it may be clearly stated whether performance audit is feasible or not.
D. Pilot study should normally be carried out in a fairly long period.

319. The most important stage in the performance audit process is-
A. Defining the audit objectives
B. Determining audit criteria
C. Deciding audit approach
D. Developing audit questions

320. Which criteria are free from any bias of the auditor or management?
A. Reliability
B. Objectivity
C. Comparability
D. Completeness

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