CA RAVI TAORI CA FINAL AUDIT MCQs
SA 701 charged with governance nor with
management.
575.1 In which circumstances, auditor should b) Key audit matters are selected from
think/consider about Key Audit Matter matters communicated to management
Paragraph? but not to those charged with
a) For audits of complete sets of general- governance.
purpose financial statements of listed c) Key audit matters are selected from
entities matters communicated with those
b) Required by law or regulation charged with governance.
c) Auditor decides to communicate key audit d) None of the above
matters (significant public interest
d) All of the above 575.5 Choose the correct one:
Determining Key Audit Matter involves?
575.2 SA 705 (Revised) prohibits the auditor from 1. Making List of matters communicated to
communicating key audit matters when the TCWG
auditor disclaims an opinion on the financial 2. Identify matters which need significant
statements, unless: auditor's attention
a) Such reporting is required by law or 3. Identification of item of most significance
regulation. 4. Correct period item
b) Such reporting is required in public interest Options:
c) Any of the above a) 1 & 4
d) None of the above b) 3 & 4
c) 1,2 & 4
575.3 What do you mean by Key audit matters? d) 1,2,3 & 4
Key audit matters means –
a) Those matters that, in the auditor’s 575.6 Which from the following shall never be
professional judgment, were of most considered for Identification of matters which
significance in the audit of the financial need significant auditor's attention?
statements of the current and previous a) Significance of Risk
period. b) Significance of Management Judgement
b) Those matters that, in the auditor’s c) Significance of event or transaction
professional judgment, were of most d) None of the above
significance in the audit of the financial
statements of the current period. 575.7 Those matters that, communicated with
c) Those matters that, in the management's those charged with governance and in the
judgment, were of most significance in the auditor’s professional judgment, were of most
audit of the financial statements of the significance in the audit of the financial
current and previous period. statements of the current period, the auditor
d) Those matters that, in the management's shall mandatorily describe each key audit matter
judgment, were of most significance in the in the auditor’s report without any exceptions.
audit of the financial statements of the a) True, there exist no exceptions to such
current period. disclosure
b) False, there exist exceptions to such
575.4 Identify the correct one: disclosure
a) Key audit matters are selected from matters
which are neither communicated with those
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CA RAVI TAORI CA FINAL AUDIT MCQs
575.8 Which from the following are the
circumstances in Which a Matter Determined to
Be a Key Audit Matter
Is Not Communicated in the Auditor’s Report.
1. Law or regulation precludes public
disclosure about the matter
2. Adverse consequences of doing so
would reasonably be expected to
outweigh the public interest benefits
(entity has publicly disclosed information
about the matter)
3. Adverse consequences of doing so
would reasonably be expected to
outweigh the public interest benefits
(entity has not publicly disclosed
information about the matter)
4. Law or regulation does not preclude
public disclosure about the matter
Options:
a) 1 & 3
b) 1 & 4
c) 2 & 4
d) None of the above
575.9 Identify the incorrect one:
1. If matter is Qualified under SA 705 -
Don’t include in KAM just give reference
of Basis of Qualification in KAM para.
2. If matter is Adverse under SA 705 -
Don’t include in KAM just give reference
Basis of Qualification in KAM para.
3. If Disclaimer is given under SA 705 -
Don’t give KAM para as audit was not
conducted
4. If matter is referred in EMP / OMP under
SA 706 and Matter of EMP / OMP is also
KAM include it in KAM
Option:
a) 1, 2, 3
b) 1, 3, 4
c) 1,2,3,4
d) None of the above
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