Auditing and Ethics - May Mtp 2020 MTP

If Mrs. X acquires security exceeding the prescribed limit in the ABC Ltd., then XYZ & Associates shall take corrective actions within………….days. What is the prescribed limit:(a) 100 days, Market Value Rs 1,00,000 (b) 60 days, Face value Rs 1,00,000 (c) 90 days, Face value Rs 1,00,000 (d) 15 days, Market Value Rs 1,00,000

Under which section reporting of fraud by an auditor to the Central Government is required and what is the amount of fraud:(a) Section 143(12), 1 crore & above (b) Section 139(12), 1 crore & above (c) Section 143(12), 2 crore & above (d) None of the above

What is the requirement for ABC Ltd as per the relevant provisions regarding maintenance of cost records:(a) Maintenance of cost records is mandatory, in form CRA 1. (b) Maintenance of cost records is mandatory, in form CRA 2. (c) Maintenance of cost records is mandatory, in any general format. (d) No requirement of maintenance of cost records.

Under relevant clause of CARO,2016, XYZ & Associates is required to report the extent of arrears of Employees Provident Fund as at the balance sheet date:(a) Exceeding 9 months (b) Exceeding 3 months (c) Exceeding 6 months (5 x 2 = 10 Marks) (d) Exceeding 12 months General MCQs

The auditor shall update and change ______as necessary during the course of the audit. (a) overall strategy (b) the overall audit strategy and the audit plan (c) audit plan (d) audit program

A request that the confirming party respond directly to the auditor only if the confirming party disagrees with the information provided in the request is(a) Positive confirmation request (b) Non-response (c) Exception (d) Negative confirmation request

Direct financial interest or materially significant indirect financial interest in a client is an example of (a) Self-review threats (b) Self-interest threats (c) Advocacy threats (d) Intimidation threats

If the auditor is unable to obtain sufficient appropriate audit evidence regarding the opening balances, the auditor shall express : (a) a disclaimer opinion (b) a qualified opinion (c) a qualified opinion or a disclaimer of opinion, as appropriate, in accordance with SA 705. (d) unmodified opinion