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Auditing and Ethics MCQs for CA Inter
Chapter-wise Auditing and Ethics MCQs with answers and explanations. Try the sample questions below, then practise a set of 10 with instant right/wrong.
Practise 10 Audit MCQsSample Auditing and Ethics MCQs with answers
Q1 · Audit Documentation
Which of the following is NOT a purpose of audit documentation under SA 230?
- (a) Assisting the engagement team in planning and performing the audit
- (b) Providing evidence of the basis for the auditor's conclusions
- (c) Enabling the engagement quality reviewer to perform reviews
- (d) Replacing the need for the auditor to obtain sufficient appropriate audit evidence
Show answer ↓
Answer: (d) Replacing the need for the auditor to obtain sufficient appropriate audit evidence
(d) is correct as the NOT option: audit documentation records evidence but does not replace obtaining sufficient appropriate audit evidence. (a), (b) and (c) are all purposes of audit documentation under SA 230.
Q2 · Audit Documentation
An auditor who identifies a matter requiring a change to audit documentation after the assembly date of the final file should:
- (a) Delete the original working papers and replace them
- (b) Document the nature of the change, when and by whom it was made, and the reason for it
- (c) Make the change without recording it so the file stays clean
- (d) Ask the client to amend its financial statements instead
Show answer ↓
Answer: (b) Document the nature of the change, when and by whom it was made, and the reason for it
(b) is correct: SA 230 requires that any changes after assembly be documented with the reason, the date and the person who made them. Deleting or silently altering papers (a and c) breaches documentation requirements, and (d) is unrelated to the auditor's file.
Q3 · Audit Documentation
Which of the following best describes the ownership of audit documentation under SA 230?
- (a) Belongs to the client, as it relates to the client's records
- (b) Belongs to the auditor, though it may be partly shared with the client
- (c) Belongs to the engagement partner personally
- (d) Belongs to the regulator, who collects it at the end of the audit
Show answer ↓
Answer: (b) Belongs to the auditor, though it may be partly shared with the client
(b) is correct: audit working papers are the auditor's property, although the auditor may choose to share parts with the client as long as confidentiality is not compromised. (a), (c) and (d) misstate ownership.
Q4 · Nature, Objective and Scope of Audit
Which Standard on Auditing deals with the overall objectives of the independent auditor and the conduct of an audit in accordance with SAs?
- (a) SA 200
- (b) SA 210
- (c) SA 220
- (d) SA 230
Show answer ↓
Answer: (a) SA 200
(a) is correct: SA 200 sets out the overall objectives of the independent auditor and the conduct of an audit. SA 210 deals with agreeing the terms of engagement, which is only a related but narrower matter, so it is wrong.
Q5 · Nature, Objective and Scope of Audit
Which SA deals with the overall objectives of the independent auditor and the conduct of an audit in accordance with Standards on Auditing?
- (a) SA 200
- (b) SA 315
- (c) SA 320
- (d) SA 500
Show answer ↓
Answer: (a) SA 200
(a) SA 200 is correct as it sets out the overall objectives of the independent auditor and the conduct of an audit. SA 315 deals with risk identification, SA 320 with materiality and SA 500 with audit evidence, so they are wrong here.
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