521. Which of the following can be basis of division of work among the joint auditor?
A. Items of asset or liabilities
B. Periodically
C. on the basis of identifiable units or specified areas
D. All of the above

522. Mr.Sachin and Mr.Kunalwere joint auditors of a company. On an audit point Mr.Kunalwas of the view that it will attract qualification however Mr.Sachin disagreed with his opinion. How audit report should be made in such circumstance?
A. Auditors should come at a common point and give report accordingly
B. The view of Mr.Kunalwill prevail because of prudence
C. They will issue separate audit reports
D. None of the above

523. In which of the following case joint auditor shall not be jointly and severally liable?
A. Divided work
B. Disclosure requirements in Financial statements
C. Compliance of audit report with statutory requirement
D. For matters brought to knowledge of all by any one of them and on which they all agreed

524. The outcome of an audit is normally a/an
A. certificate
B. report
C. income and expenses
D. profit or loss

525. The audit conducted for the purpose of investigation into possible fraud, mismanagement, or negligence is termed as
A. performance audit
B. statutory audit
C. operational audit
D. forensic audit

526. What type of auditing standard is applied in the audit of historical financial information?
A. ISAs
B. IFAs
C. ISRSs
D. ISAEs

527. The title of AAS-2 issued by Council of ICAI is ___
A. Objective and Scope of the Financial Statements
B. Objective and Scope of the Audit of Financial Statements
C. Objective and Scope of Business of an Entity
D. Objective and Scope of Financial Statements Audit

528. As per AAS-4 if auditor detects an error then –
A. He should inform the management.
B. He should communicate it to the management if it is material
C. The auditor should ensure financial statements are adjusted for detected errors.
D. Both (b) and (c)

529. Which of the following is not a limitation of audit as per AAS-4?
A. Objectivity of auditor’s judgment
B. Selective testing
C. Persuasiveness of evidence
D. Limitations of internal control system.

530. How many principles are listed in AAS­1 which govern auditor’s professional obligation?
A. Nine
B. Fourteen
C. Seven
D. Eight

NOTE
IF YOU THINK ANY OF THE MCQ ABOVE IS WRONG.
PLEASE COMMENT WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION IN COMMENT BOX.
THANK YOU

Leave a Reply