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CA Final Course Advanced Auditing and Professional Ethics Question Paper

Introduction

The following question paper consists of 5 questions. You have to attempt all the questions. All questions are compulsory.

Question No. 1

Sampling is a statistical procedure used to select a sample of records from a population.

The size of the population and the expected error rate must be known before sampling can be performed effectively.

Sampling reduces the cost of an audit because it reduces the number of audits required by reducing both time and money spent on each audit, but it does not eliminate all costs associated with conducting an audit because more work is needed after collecting data in order to analyze it properly, write reports and communicate them effectively with clients or stakeholders within organizations who need information about their financial condition (i.e., auditors).

Question No. 2

Question No. 2: What is the meaning of “controls that are affected by management override”?

The term “controls that are affected by management override” refers to any control which has been overridden by a decision made by an entity's management, even if such action does not result in material effects upon the financial statements of the entity. This includes situations where a control does not function effectively or adequately because it was not implemented properly or because its design was inappropriate for purpose(s) intended by management.

Question No. 3

The auditor is responsible for assessing the effectiveness of controls as part of the overall audit process. The control objectives provide a framework for monitoring activities and assessing their effectiveness within a given time period. They are defined according to:

Types – such as budgeting, planning and purchasing;

Procedures – such as staff training programs;

Resources – such as computer equipment and software;

Environment – such as policies and procedures manuals;

The auditor should be able to identify any gaps in controls so that corrective action can be taken immediately or at least within a reasonable period following completion of an audit report's delivery date

Question No. 4

The audit risk of a company is the risk that it will fail to detect material misstatements and omissions in its financial statements. Audit risk can be calculated using a variety of methods, but all are based on various assumptions about how likely it is that an auditor will find errors in the books and records of its client's business activities. The most common method of calculating audit risk involves identifying three factors: audit probability, audit resource requirements and audit confirmation time required for each type of error (material or immaterial).

Question No. 5

The auditor should perform tests of controls that are affected by management override in accordance with which of the following standards?

AICPA's Auditing Standards

US GAAP

International Standards on Auditing (ISAs)

The Sarbanes-Oxley Act of 2002

CA Final Course Advanced Auditing and Professional Ethics Question Paper

CA FINAL COURSE ADVANCED AUDITING AND PROFESSIONAL ETHICS QUESTION PAPER

What do you understand by a professional ethic?

A. It is a code of ethics that is based on the principles of ethics, which can be applied to any profession or field.

B. It is a set of principles that an individual adheres to in order to achieve success in their chosen career field, whether they are an accountant or doctor, etc., and also how they should behave around other people who work with them too (e.g., co-workers).

1. Which one of the following best describes audit sampling?

Audit sampling is a method of selecting items to test. It can be used to estimate the population mean and sample error rate, as well as to estimate the population variance.

Audit Sampling provides information about how well your sample represents your population at all levels of measurement (e.g., who, what and where).

2. Which of the following is not an effective control for a sales order processing system?

Which of the following is not an effective control for a sales order processing system?

a) The sales order processing system should be designed to prevent unauthorized changes to the system.

b) The sales order processing system should have adequate documentation.

c) The sales order processing system should have an effective system for recording transactions, including accounting and audit trails, as well as all necessary controls and procedures.

3. Which one of the following is not an element of audit risk?

Risk of Material Misstatement

Fraud

Control Failure

Information Technology Failure

4. Which one of the following statements is incorrect about an entity's financial statements?

Which one of the following statements is incorrect about an entity's financial statements?

A: They are prepared for the purpose of providing information to users.

B: They are prepared in accordance with the generally accepted accounting principles (GAAP).

C: They are prepared in accordance with accounting policies and practices as set out by their auditors or external bodies such as SICPA or AICPA, etc., which may differ from those used by public companies but they must be consistent with GAAP.

5. The auditor should perform tests of controls that are affected by management override in accordance with which of the following standards?

The auditor should perform tests of controls that are affected by management override in accordance with which of the following standards?

ASAE, AICPA, FASB and COSO.

Takeaway:

The main purpose of this question paper is to provide a platform for students to practice questions related to CA Final Course Advanced Auditing and Professional Ethics. It contains past year questions from all the years, which can be used as references if needed by students.

Conclusion

The CA Final Course Advanced Auditing and Professional Ethics Question Paper is a very useful tool to help you prepare for the CA Final. It’s also a great way to study for your final exam! If you want some extra help on studying or just want access..

Click This Link Advanced Auditing and Professional Ethics Question Paper:-

https://drive.google.com/drive/folders/1mYpuBNDGkM6pifIVepM0x6krzYaBM4rK?usp=share_link

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