501. It is not mandatory to send a new engagement letter in recurring audit, but sometimes it becomes mandatory to send a new letter.
A. True
B. False
C. Partially true and partially false
D. Can’t form an opinion
502. When auditee requests the auditor to change the terms of engagement, auditor should consider whether changed terms provide _________ of assurance.
A. Higher Level
B. Optimal Level
C. Acceptable Level
D. None of the above
503. It is the responsibility of _________ to use acceptable financial reporting framework in preparation of financial statements.
A. Management
B. Internal Auditor/Concurrent Auditor
C. Statutory Auditor
D. Audit committee
504. MNO & Associates was appointed as Statutory Auditors by the members of XYZ Ltd. During the F. Y 2017-18., there was a significant change in senior management. This may lead to
A. Revision in terms of audit engagements
B. Withdraw the audit assignment
C. Continue the same audit engagement
D. Give a modified report
505. Circumstances that may warrant the revision in terms of engagement as per SA 210.
A. Significant change in ownership
B. Change in nature, size of the entity’s business.
C. Change in legal or regulatory requirement.
D. All of above
506. As per SQC 1, for listed entities, engagement partner should be rotated after a pre-defined period, normally not more than _______ years.
A. 5
B. 8
C. 7
D. 10
507. As per SA 230 read with ______, working papers should be preserved for minimum period of 7 years from the date of auditor’s report or the date of the group auditor’s report, whichever is later.
A. SA 500
B. SA 200
C. SA 210
D. SQC 1
508. The firm’s _____ should assume ultimate responsibility for the firm’s system of quality control.
A. Article assistant
B. Engagement Partner
C. Engagement Quality Control Reviewer
D. Qualified Assistant
509. The complaints and allegations against the firm as regards to the non-compliance of professional standards or allegation of non-compliance of firm’s system of quality control shall be dealt with _______.
A. Legal regulations
B. By taking appropriate disciplinary actions
C. Both a and b or either of a or b
D. None of the above
510. The audit firm should implement _________ policies to ensure all audits are conducted in accordance with Audit and Assurance Standards.
A. Detection Control
B. Quality Control
C. Management Control
D. Internal Control