NEW
Font size
WorksheetsCOST and Management Audit MCQs 4
Total questions: 30
Worksheet time: 43mins
Who cannot be appointed as an internal auditor?
A Chartered accountant
Employee
Cost accountant
None of the above
Which of the following do not fall in the category of regulated sectors for the purpose of cost audit?
Fertilizers
Telecommunication
Turbo jets
Electricity
Caro 2016, requires the auditor of the company to report whether maintenance of cost records has been specified by CG under section 148 and whether they are maintained are not. How you would report.
Clause xii
Clause iii
Clause vi
No reporting
A Chartered Accountant practicing in India can enters into partnership with-
A Certified Public Accountant in New York.
A chartered Accountant from the Institute of Chartered Accountants in England and Wales in London, and in each case, the members concerned take the profits earned in their own country.
Tax Consultant.
Cost Accountant.
Segregation of duties includes –
To minimize the occurrence of fraud and errors
Considering the cost and efficacy
None of above
(a) and (b)
To design audit approach to achieve necessary audit assurance at the lowest cost is –
Audit Plan
Audit Programme
Audit Strategy
None of the above
Which of the following areas of Propriety Audit are covered under the Companies Act, 2013?
Enquiry into certain matters like loans & advances
Supplementary Audit & Test Audit by Comptroller and Auditor General in case of Government Companies
Cost Records and Audit
Information regarding energy conservation, Director's Responsibility Statement etc.
All of the above
Every registered person must get it's accounts audited by Chartered Accountant or Cost Accountant if his aggregate
turnover during a FY exeeds _______
1 Crore
2 Crores
5 Crores
50 lakhs
"Whether maintenance of cost records has been specified by the Central Government under sub-section (1) of Section
148 of the Companies Act, 2013 and whether such accounts and records have been so made and maintained.”
The Auditore is required to report the above under Clause ____ of CARO, 2016.
(v)
(vi)
(iv)
(vii)
The evidence available to auditor is _______ in nature, rather _______ in nature.
pervasive, conclusive
Conclusive, pervasive
limited, unlimited
None of the above
Standards issued by the Auditing and assurance standards boards under the authority of the council are collectively known as ______.
Standards of Auditing
Auditing Pronouncement
Engagement Standards
All of the above
Compliance with the Standard of Auditing is the responsibility of
Management
Those charged with governance
Auditor
Audit committee
The guidance note contains ________ audit procedures in case of audit of liabilities.
recommended
mandatory
standard
None of the above
The auditor shall comply with each requirement of SA unless in the circumstances of auditing
The entire SA is not relevant
The requirement is not relevant because it is conditional and the condition does not exists
Both a and b
None of the above
As per the council general guidelines issued by the institute of Chartered accountant of India, if member express his opinion on financial statement in which his relative has a substantial interest, he is ________.
Required to take utmost care in Auditing the financial statements
Required to accept the audit engagement by carefully reading the terms of engagement
Required to withdraw later on if it is threat to his independence
Guilty of professional misconduct
The „accounting standards‟ and „Standards on Auditing‟ establish standards which have to be complied with to ensure that financial statements are prepared in accordance with ______.
Generally acceptable Audit Procedure
Accounting Principles
Ind AS
Accounting Standards
While discharging the attest function, it will be duty of the members of the institute to examine whether the ________ is complied with in the presentation of financial statement covered by their audit
Accounting Standards
Management responsibility
Auditor‟s responsibility
All of the above
In the event of any deviation from the Accounting Standards, it will be the duty of the auditor to make adequate ________ in the reports so that the user of the statements may be aware of financial deviations.
Reporting
Announcement
Disclosures
All of the above
Sufficiency is the measure of the _____ of audit evidence.
Quantity
Quality
Appropriateness
Sufficient
An auditor is required to determine the ________ of his audit procedures according to the requirements of Standards of Auditing.
Conduct
Nature timing and extent
Limitation
Planning
CA. Ram was appointed as an auditor in XYZ Ltd. For the F. Y 2017-18. During the year there was a significant change in senior management. This may lead to
Revision in terms of audit engagements
Withdrawn the audit assignment
Continue the audit assignment
Give a modified report
_______ documents are more reliable than mere photocopy.
Electronic
Original
Management
Auditor‟s
Most of the audit evidence are in the form of __________.
Documentary evidence
Written representation
Electronic form
Oral evidence
The cost auditor shall submit the cost audit report along with his or its reservations or qualifications or observations or
suggestions, if any, in Form _________.
CRA-3
CRA-2
CRA-4
CRA-1
Mr. Gautam, being the Cost Auditor is in dilemma regarding within what time he shall submit his Cost Audit Report to
the Board of the Company Gastro Ltd. Guide him.
He shall forward his duly signed report to the Board of Directors of the company within a period of _______ from the
closure of the financial year to which the report relate.
45 days
9 months
180 days
3 months
Rule 3 of the Companies (Cost Records and Audit) Rules, 2014 provides services, having an overall turnover from
all it's products and services of _____ or more during the immediately preceding financial year, required to include cost
records in their books of accounts.
Rs. 50 crores
Rs. 100 crores
Rs. 25 crores
Rs. 35 crores
Expro Ltd. is engaged in the production of steel. A Chartered Accountant Firm M/s Kantilal & Co was appointed as
statutory auditor of Expro Ltd. for the current financial year. During the year, the management of the Company realised
that the company is required to maintain cost Records in their books of accounts and get it audited. Therefore, in
general meeting, the members of the company appointed M/s Kantilal &Co as the cost auditor.
The company is not required to maintain the Cost Records and get it audited
The appointment is valid as members are eligible for making the appointment
The appointment is not valid as the Board shall appoint the cost auditor
The appointment is not valid as the statutory auditor cannot be the cost auditor of the same company
Who is mainly responsible for implementation of internal financial controls in a company?
Auditors
Directors
Employees
Regulators
By conducting which steps, the auditor can obtain sufficient and appropriate audit evidence regarding existence of inventory, when the inventory is under the custody and control of third party and the auditor considers it material to the Financial statements
Request confirmation from the third party
Perform inspection if possible or other audit procedure
Both a and b
Give a Disclaimer of opinion
If attendance at physical inventory counting is impracticable, the auditor shall _______ regarding the existence and condition of inventory
Ignore physical inventory counting and move ahead
Perform alternative audit procedures to obtain sufficient and appropriate audit evidence
Withdraw from the engagement
Inform the management
