Auditing and Ethics - November 2018

Examine with reasons (in short) whether the following statements are correct or incorrect: (a) Judgemental matters are transactions that are unusual due to either its size or nature and that therefore occur infrequently. (b) A well designed and drafted audit plan and audit strategy which takes care of all the uncertainties and conditions, need not be changed during the course of audit. (c) An auditor is not concerned with consistency of accounting policies relating to opening balances. (d) Audit evidence…

(a) Factors that should be considered for deciding upon the extent of checking on a sampling plan. (5 Marks) (b) "An adequate planning benefits the audit of financial statements." Discuss. (5 Marks) (c) "Professional judgment is essential to the proper conduct of an audit." Discuss. (5 Marks) (d) With respect to audit in an automated environment, explain the following: (i) CAATs (ii) Data Analytics (iii) Database (iv) Information Systems (v) Privileged access (5 Marks) (a) The factors that should be…

Associates, Chartered Accountants, have been appointed as an auditor of ABC Limited. CA Pankaj did not apply any audit procedures regarding opening balances. He argued that since financial statements were audited by the predecessor auditor therefore he is not required to verify them. Is CA Pankaj correct in his approach? (5 Marks) PAPER – 6: AUDITING AND ASSURANCE 5 (b) "While the auditor may choose to analyse the monthly trends for expenses like rent, power and fuel but for other…

(a) "Planning is not a discrete phase of an audit, but rather a continual and iterative process." Discuss. (5 Marks) (b) "The company has raised funds by issuing fully convertible debentures. These funds were raised for the expansion and diversification of the business. However, the company utilized these funds for repayment of long term loans and advances." Advise the auditor regarding reporting requirements under CARO, 2016. (4 Marks) (c) "A multinational co. wants to appoint you to carry the statutory…

(a) "An auditor is required to make specific evaluations while forming an opinion in an audit report." State them. (5 Marks) 10 INTERMEDIATE (NEW) EXAMINATION: NOVEMBER, 2018 (b) "Mr. A is offered by ABC Ltd. for appointment as cost auditor and asked to certify certain requirements before such appointment." Discuss those requirements with reference to the provisions of the Companies Act, 2013. (5 Marks) (c) Briefly mention the matters that are relevant in planning attendance at physical inventory counting. (5…

(a) "CA. NM who is rendering management consultancy service to LA Ltd. wants to accept offer letter for appointment as an auditor of the LA Ltd. for the next financial year." Discuss with reference to the provision of the Companies Act, 2013. (5 Marks) 12 INTERMEDIATE (NEW) EXAMINATION: NOVEMBER, 2018 (b) Briefly explain the provisions for qualification and appointment of Auditors under the Multi State Co-operative Societies Act, 2002. (5 Marks) (c) "The Auditor should examine the efficacy of various…