321. Find the correct one about Audit Design Matrix (ADM).
A. The Audit Design Matrix is prepared on the basis of information and knowledge obtained in the planning phase during the course of pilot study.
B. Audit teams are encouraged to update the Audit Design Matrix as and when it acquires more in-depth knowledge of the audit subject matter.
C. A well-designed Audit Design Matrix leads to efficient planning and resultant effective audits thereby providing highest assurances to the audited entities and those charged with governance.
D. It is desirable to prepare ADM for each of the audit objectives.
E. All of the above.

322. Find the correct one about Audit Findings Matrix (AFM).
A. The audit teams are encouraged to prepare an Audit Findings Matrix indicating the audit findings vis-à-vis good practices and the potential audit recommendation along with the expected benefits in case the recommendation is implemented.
B. It is meant to provide a link between the audit objectives, criteria, the audit observation and the recommendations emerging there from.
C. The audit teams should link the Audit Findings Matrix with Audit Design Matrix and highlight the Para number as well as chapter number of the draft report against each of the audit objective where the observations are reported.
D. All of the above.

323. Audit findings are the specific evidence gathered by the auditor to satisfy the audit objectives. Audit findings contain four elements.
A. criteria (‘what should be’)
B. condition (‘what is’)
C. effect (‘what are the consequences’ – observed as well as ‘reasonable and logical future impact’)
D. cause (‘why is there a deviation from norms or criteria’)
E. All of the above.

324. Evidence should be obtained to support the auditor’s judgment and conclusions regarding the organisation, programme, activity or function under audit. Which one is not a basic evidence?
A. Competence
B. Reliable
C. Relevant
D. Reasonable

325. Evidence is _ when it is valid and reliable and actually represents what it purports to represent.
A. Competent
B. Reliable
C. Relevant
D. Reasonable

326. _ is measure of quality of audit evidence.
A. Competence
B. Reliability
C. Relevance
D. Reasonableness

327. The minutes of exit conference should be recorded and endorsed to the entity with a request to acknowledge the minutes within stating that in case of non receipt of acknowledgement with in stipulated period, it will be presumed that audited entity concurs with the minutes.
A. two weeks
B. three weeks
C. four weeks
D. six weeks

328. Find the incorrect statement.
A. While third parties may not generally be the audited entities, their activities affect the program and service delivery, and audit reports often include commentary about their responsibilities and performance.
B. Auditors should not communicate to third parties, neither in writing nor orally any information they obtain in the course of audit work, except where doing so is necessary to discharge the statutory or otherwise prescribed responsibilities.
C. In case any information is required from third parties, audited entity would requisition the same from the third party and provide to Audit. Further, where role of identified third parties is considered very significant to the audit conclusions and recommendations, the audited entities may be encouraged to bring out the concerns of those parties in their replies to audit.
D. None of the above.

329. The audit report is __ if the results of audit are presented persuasively and the conclusions and recommendations follow logically from the facts presented.
A. Objective
B. Convincing
C. Consistent
D. Constructive

330. _______of audit report is ensured through fair conclusions and balanced content and tone.
A. Objectivity
B. Convincing ability
C. Consistency
D. Constructiveness


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