Advanced Auditing, Assurance and Professional Ethics - May 2025 RTP

Based on the above case scenario, answer the following MCQs: 1. 2 Mr. K, the engagement partner of M/s KAP & Co, failed to maintain any documentation of the whole verification process and did not perform impairment testing on the PPE at the end of the financial year. Select the appropriate option as per SA 299. (a) Mr. K is severally responsible for his own actions and the said work was his responsibility. (b) No, Mr. B & Mr. K…

Considering the above case, whether reporting under CARO, 2020 will be applicable to ABC Private Ltd.? (a) No, since the company is a private limited company. (b) No, since the company is in the business of acquisition of shares and securities. (c) Yes, since the company is wholly owned subsidiary of listed company WYZ Ltd. (d) No, since the company is a small company as per the Companies Act, 2013. While preparing a consolidated financial statement of WYZ Ltd., division…

Suban Engineering, a borrower of the branch, had fully utilized its sanctioned cash credit limit of ` 400 Lacs, with an outstanding balance of ` 413 Lacs as of March 31, 2024. The bank classified the account as a Sub-standard Asset. During an inspection, the DGM observed that the borrower’s premises were damaged, with no machinery, stock, or other assets present. The borrower was unreachable, and an independent verification of assets confirmed that no mortgaged security was available, except for…

The account is correctly classified, but provision should be made for hundred percent of the unsecured portion besides making specified provision on secured portion. (b) The account should have been classified as Doubtful asset and besides making required provision on secured portion, provision should have been made for hundred percent of the unsecured portion. (c) The account should have been classified as Loss asset and full provision should have been made in the books of accounts. (d) The account should…

Mohini Ltd. paid their arrears of undisputed statutory dues just a day before the date of the audit report. After this, now the auditor believes that only disputed dues need to be reported under the CARO, 2020 as undisputed dues are paid before the date of the audit report. Which of 5 MAY 2025 EXAMINATION REVISION TEST PAPER the following is the most appropriate course of action for the auditor in this situation? (a) The auditor is required to report…