Auditing and Ethics - Jan Rtp 2026 RTP

Considering dilemma of J described in case scenario, which of the following statements is most appropriate? (a) Only overall audit strategy needs to be documented by audit team. (b) Only audit plan needs to be documented by audit team. (c) Both overall audit strategy and audit plan need to be documented by audit team. (d) Overall audit strategy, audit plan and any significant changes made during the audit engagement to the overall audit strategy or the audit plan and the…

Which of the following statements is true regarding drawing power on basis of facts given in case scenario? (a) DP is ` 10 lacs and firm can withdraw funds up to ` 10 lacs. (b) DP is ` 12 lacs and firm can withdraw funds up to ` 12 lacs. (c) DP is ` 8 lacs and firm can withdraw funds up to ` 10 lacs. (d) DP is ` 8 lacs and firm can withdraw funds up to `…

The auditor of PAC Pvt Ltd., a pickle manufacturing company, notices that the company is expanding its operations into North India States in Financial Year 2024-25, but the related internal control system remains the same to handle the increased volume of transactions and consequently auditor concludes that material misstatements would not be prevented, or detected and corrected by the entity’s internal control. Type of risk involved in this situation is: (a) Detection Risk. (b) Control Risk. (c) Inherent Risk. (d)…

If such subsequent events that require adjustment or disclosure in the financial statements have been identified, it shall be determined whether each such event is appropriately reflected in those financial statements. (iii) Obtain a written representation from management that all events occurring subsequent to the date of financial statements and for which appropriate adjustment has been done or required disclosure has been made. (a) (i) (b) (i) and (ii) (c) (i) and (iii) (d) (i), (ii) and (iii) While conducting…

Associates, Chartered Accountants, were appointed as the auditors of STI Ltd., a Textile manufacturing company, for the financial year 2024-25. Management of the company discussed with the newly appointed auditors that the company has been suffering losses for the last few years and also the Directors are suspecting that accounts are not properly maintained and might contain errors and frauds. So, in the given situation, management of the company requested the auditors to 5 JANUARY 2026 EXAMINATION REVISION TEST PAPERS…

Associates., Chartered Accountants, are appointed as statutory auditors of B Ltd. for the first time in F.Y. 2024-25. Before commencing the audit, the engagement partner considers the integrity of Directors, evaluates compliance with ethical requirements including independence, sends an engagement letter to avoid misunderstanding. Explain the above stage of the audit planning process as considered by the engagement partner. Chapter 3 - Risk Assessment and Internal Control

Co. is a firm of Chartered Accountants established in 2010 with major focus on Audit Practice. In F.Y. 2024-25, firm has four partners and 15 articled assistants handling various Internal audit and Statutory Audit assignments. Partners and articled assistants meet monthly to discuss various aspects of practical as well as academic issues. While discussing about various aspects of Audit Risk, Risk of material misstatement etc., Partner S asks one of the articled assistants to explain the concept of misstatement with…