Advanced Auditing, Assurance and Professional Ethics - November 2024

DEF & Associates have been appointed as the statutory auditor of JKL Ltd, a PSU engaged in generation of electricity from solar power. The Committee on Public undertakings with a view to examining PSU's physical and financial performer is examining the reports and accounts of public undertaking and also audit findings of the C & AG. Following are some of the functions of specialised committees: () to examine the statement of accounts of autonomous and semiautonomous bodies, the audit of…

Goodwill impairment assessment. Accordingly, M/s Deva & Co. are in the process of determining in which areas and to what extent internal auditors can be used and in which areas statutory auditors shall not use internal auditors to provide direct assistance to perform procedures. e Mf/s Deva & Co. during the course of identifying and assessing the risks of material misstatement through understanding the entity and its environment and during the course of performing the audit procedures finds that the…

C. The risk factor creates a perceived opportunity for the fraud and results in a misstatement due to fraudulent financial reporting. D. The risk factor creates a perceived opportunity for the fraud and results in a misstatement due to misappropriation of assets (2 Marks) 7. Out of the following which view of M/s Deva & Co. is the correct one for complying the reporting requirement under CARO, 2020 as regards lumpsum deposit of estimated ESI collections and its adjustment against…

Reserve Bank of India, fulfilling the required criteria. During the financial year ending 31st March 2025, the company commenced operations on a massive scale. You are informed that RBI has revised different facets of existing NBFC Classification and regulation like Capital requirements, Government standards, Prudential regulations, etc. based on four layers that are defined based on their size, activity and perceived riskiness. During the FY 2024-25 APP Ltd. has accepted deposits of ₹900 Crore, while its asset size is 990…

AST Ltd.'s ability to continue as a going concern in view of material uncertainty related to it. CA V wants to communicate this and other circumstances as additional information in his report with those charged with the governance. Financial statements of VED Ltd. for the year ended on 31% March 2024 were signed by CA H, the engagement partner on 15th May 2024. The AGM was decided to be held during the month of August 2024. On 17th May 2024…

D. when there are no key audit matters to be communicated in accordance with SA 701. (2 Marks) 14. In view of the Board of Directors of the VED Ltd. agreeing to include an amount of ₹8500 crore on account of incentives in respect of F.Y. 2021-22 in the financial statements of the company for the Financial Year ended on 31 March, 2024 by amending the accounts, CA H shall consider the following procedures. Identify the incorrect procedure from the…