WAY TO PINNACLE
AUDITING & ASSURANCE (CA-INTER)
LIST OF IMPORTANT QUESTIONS-(OLD & NEW)
BY: CA. NITIN GUPTA
Question 1
What are the advantages of audit of financial statements? Or what are the advantages
of independent examination?
Question 2
Define the concept of true and fair view in an audit of financial statements.
Question 3
Discuss principal aspects to be considered by an auditor while conducting an audit
of financial statements.
Question 4
What are the auditor’s responsibilities relating to fraud in an audit of financial
statements? [Hint: Refer SA 240]
Question 5
What are the basic principles of an audit?
Question 6
Mention the areas in which different accounting policies are encountered and how
that would be disclosed.
Question 7
Short note on “Reliability of Audit Evidences”
Question 8
Explain various methods to obtain audit evidences.
Question 9
The auditor may exercise his judgement to identify which risks are significant risks.
Explain the above in the context of SA- 315.
Question 10
As an auditor how will you obtain an understanding of the entity and its environment
in an audit of financial statements? [Hint: Refer SA 315]
Question 11
In the context of SA 315, state the assertions used by auditor to consider different
types of potential misstatements that may occur w.r.t. Classes of transactions &
events, account balances at the end of reporting period and overall presentation and
disclosure of the financial statements.
Questions 12
How test of controls is performed by the auditor in an audit of financial statements?
[Hint: Refer SA 330]
Question 13
How substantive audit procedures are performed by the auditor in an audit of
financial statements? [Hint: Refer SA 330]
Question 14
Define external confirmation procedures. [Hint: Refer SA 505]
Question 15
How analytical procedures are performed by auditor in an audit of financial
statements? [Hint: Refer SA 520]
Question 16
What are the factors that determine the extent of reliance that auditor can places on
results of analytical procedures? Explain with reference to SA 520.
Question 17
Define audit risk and its components.
Question 18
Explain the concept of materiality and factors which act as guiding factors to this
concept. [Hint: Refer SA 320]
Question 19
With reference to SA 320 indicate the factors which may affect the identification of
appropriate benchmark in determining materiality for the financial statements as a
whole.
Question 20
What are the preconditions for an audit of financial statements? [Hint: Refer SA 210]
Question 21
Indicate the factors which make it appropriate for an auditor to send a new
engagement letter for a recurring audit. [Hint: Refer SA 210]
Question 22
How an audit strategy is established? What are its advantages? [Hint: Refer SA 300]
Question 23
M & Co. is appointed as auditor of G Ltd. As an auditor what are the factors that would
be considered in the development of overall audit plan? [Hint: Refer SA 300]
Question 24
What are the advantages and disadvantages of audit programme?
Question 25
Mention the factors which affect the form, content and extent of audit documents.
[Hint: Refer SA 230]
Question 26
What are the additional number of purposes served by audit documentation?
[Hint: Refer SA 230]
Question 27
With reference to SA 530, meaning of audit sampling and requirement of sample
design, sample size and selection of items for testing.
Question 28
Precautions to be taken in applying test check technique.
Question 29
“The auditor is faced with sampling risk in both tests of control and substantive
procedures.” Comment on this statement with reference to SA 530.
Question 30
Short Note on “Random Sampling”.
Question 31
What are the advantages of “Statistical Sampling”?
Question 32
Is surprise check desirable in audit, if so, give important recommendations?
Question 33
Short Note on “Examination in Depth”
Question 34
What is continuous audit and what are the precautions should be taken to avoid the
disadvantages of continuous audit?
Question 35
What instructions should be given to client before start of actual audit?
Question 36
Write short note on “Internal Financial Controls”
Question 37
What are the inherent limitations of internal controls?
Question 38
What are the inherent limitations of auditing?
Question 39
Write short note on Narrative Records, Check List, Internal Control Questionnaire
and Flow Chart.
Question 40
Write short note on “Letter of Weakness”
Question 41
What are the general considerations in framing a system of internal check?
Question 42
What are the prohibited services for auditor of company? [Hint: Refer Section 144]
Question 43
Discuss power of the Tribunal for removal of auditor of company. [Hint: Refer Section
140(5)
Question 44
Discuss duties of company auditor for reporting on fraud to CG. [Hint: Refer Section
143(12)]
Question 45
Discuss provisions for filling of casual vacancy in the office of auditor of company.
[Hint: Refer Section 139(8)]
Question 46
What is the Companies (Auditor’s Report) Order, 2016? Discuss its applicability.
Question 47
What are the provisions for appointment of subsequent auditor of company? [Hint:
Refer Section 139(1), (5)
Question 48
What are the provisions for appointment of first auditor of company? [Hint: Refer
Section 139(6), (7)
Other Important Section- 141(3)(b)(c)(d)(e)(f)(g)(i), 139(2)
Clause of Para 3 of CARO (2016)- (i), (ii), (vi), (vii), (viii), (x), (xi), (xiii)
Question 49
With reference of SA 250 give some examples or matters indicating to the auditor
about non-compliance with law and regulations by the management.
Question 50
Discuss auditor’s responsibilities in relation to reporting on non-compliance with
law and regulation. [Hint: Refer SA 250]
Question 51
How a joint audit plan is developed by joint auditors in the joint audit of financial
statements? [Hint: Refer SA 299]
Question 52
What are the points where joint auditors are jointly and severally responsible? [Hint:
Refer SA 299]
Question 53
As an auditor how will you obtain sufficient and appropriate audit evidence for
existence and condition of inventory? [Hint: Refer SA 501]
Question 54
As an auditor how will you obtain sufficient and appropriate audit evidence for
opening balance in initial audit engagement? [Hint: Refer SA 510]
Question 55
As an auditor how will you assess risk of material misstatements in accounting
estimates? [Hint: Refer SA 540]
Question 56
Mention some records or documents that may provide information about related
part relationships and transactions. [Hint: Refer SA 550]
Question 57
Discuss with reference to SA 550, “Identification of significant related party
transaction outside the entity’s normal course of business.
Question 58
Inquiry from management is helpful for auditor to evaluate subsequent events.
Discuss specific inquiries of SA 560, which might have effect on the financial
statements.
Question 59
As an auditor how will you obtain sufficient and appropriate audit evidence for
subsequent events in an audit of financial statements? [Hint: Refer SA 560]
Question 60
Mention events or conditions which may create significant doubt on the entity’s
ability to continue as going concern. [Hint: Refer SA 570]
Question 61
What are the additional audit procedures when auditor identifies events or
conditions which may create significant doubt on the entity’s ability to continue as
going concern? [Hint: Refer SA 570]
Question 62
How external auditor determines the nature and extent of work that may be assigned
to internal auditor to provide direct assistance? [Hint: Refer SA 610]
Question 63
Who is an expert and how is he appointed? [Hint: Refer SA 620]
Question 64
Short Note on- Unmodified Opinion, Adverse Opinion, Disclaimer of Opinion and
Qualified Opinion.
Question 65
As an auditor how will you determine Key Audit Matters to communicate in audit
report? [Hint: Refer SA 701]
Question 66
Define “Emphasis of Matter” and “Other Matter” paragraph in auditor’s report. [Hint:
Refer SA 706]
Question 67
Special Audits- Audit of Club, Hospital, Educational Institutions, Hire Purchase Co,
NGO.
Question 68
Short Note on “Power of CAG”
Question 69
What are the focus points in doing propriety audit by CAG as regards government
expenditure?
Question 70
Internal Audit Requirement under the Co Act, 2013.
Only For Old Syllabus Students
Vouching and Verification
Goods on Consignment Basis, Sales Return, Income from Investment, sale of
investment, sale of Fixed Assets, Wages & Salaries, Custom Duty, Remuneration paid
to Directors, Preliminary Expenses, Research and Development Expenses,
Retirement Gratuity to Employees, Advertisement Expenses, Advance Given to
Director of Company.
Verification of Trade Mark and Copyrights, Goodwill, Cash at Bank, Inventory Lying
with Third Party, Bank Borrowings, Contingent Liabilities.
The Company Audit-II
Examination of Buy Back of Securities, Prohibition on Buy Back
Examination of Reduction of Share Capital
Examination of Alteration of Share Capital
Examination of Issue of Bonus Shares
Examination of Issue of Sweat Equity Shares
Examination of Payment of Dividend
Audit in CIS Environment
Nature of Processing in CIS Environment
Different Design and Procedural Aspects of CIS
Specific Risk Relating to IC in CIS Environment
Internal Control in CIS Environment
Black Box and White Box Approach
Benefits of CAAT
Doing audit in CIS environment is simpler since Trial Balance always tallies. Discuss
Only For New Syllabus Students
Audit of Co-Operative Society [4-5 Marks]
Investment of Funds
Special Report to Registrar
Special Features in Audit- Examination of Overdue Debt
Schedules to be included in the audit report of Co-Operative Society
Power of CG to Direct Special Audit
Inquiry by Central Registrar
Audit of Banks [4-5 Marks]
Audit of Advances,
Prudential Norms on Income Recognition, Assets Classification, Provisions
Pertaining to advances
Mode of Creation of Security
Audit in Automated Environment [4- 5 Marks]
Key Features of an Automated Environment
Impact of IT Related Risk on Controls, Substantive Audit and Reporting
Types of Controls in an Automated Environment
Audit Approach in Automated Environment
Data Analytics for Audit
Audit of Items of Financial Statements [10-15 Marks]
Cover entire Chapter from Book.
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