Mr w one of the team member of auditor of different limited was of you that understanding the internal control of different limited will not help in developing and Audit program

Information obtained by the performing risk assessment procedure shall not be used by the auditor as audit evidence to support assessment of risk of material statement

I got 25/30🤩

Comment down 👇 your score

How was today's quiz??

Solution for the test held

https://t.me/CANOTESCOMMUNITY/7159

⑉⑉⑉⑉⑉⑉⑉⑉༄༄༄⑉⑉⑉⑉⑉⑉⑉⑉⑉⑉
@CANOTESCOMMUNITY
⑉⑉⑉⑉⑉⑉⑉⑉༄༄༄⑉⑉⑉⑉⑉⑉⑉⑉⑉⑉

Correct/incorrect with reason

Even if law or regulation prescribes sufficient details of the terms of the audit
engagement the auditor should record them in a written agreement.
(2 Marks)

Today's Quiz 🪄

Subject:- Audit🔮

Topic:- Chapter 4:- Risk assessment and internal control ✨

Timing:-10:00pm🛎

Are you guys ready for quiz??

Care Ltd. is an unlisted public limited company, During the financial year 2022-23, the paid-
up share capital of Care Ltd. was INR 50 crore and the turnover was INR 80 crore. During the
financial year 2023-24, the Board of Directors of the company appointed an internal auditor.
Whether Care Ltd. is required to appoint an internal auditor according to the provisions of the
Companies act, 2013?

Auditor or Sunshine Ltd. is of the view that due to greater management intervention to
specify accounting treatment, the risk of material misstatement is greater for non-routine
transactions. Is the view of the auditor correct?

Q3.A company is engaged in manufacturing of wooden furniture. The
auditor of company notes that company has identified emerging risks
pertaining to probable reduction in demand of company’s products due
to procurement of imported furniture from South East Asian nations. It
has also estimated how significant are those risks and their possibility of
happening. Besides, it has also formulated an action plan to deal with the
situation, in case these risks materialize
Which of the following options would be most appropriate to describe
above situation?
(a) An example of audit risk for auditor
(b) An example of component of internal control of company
(c) An example of control risk of company
(d) An example of inherent risk for auditor

Case based questions

There are 2 cased based questions
So take time to read the COMPLETE QUESTION

Roop & Co. are the auditors of Onda group of Hotels.
This is the first time the firm is auditing an industry in
food and beverages and it is day one of the audit. The engagement partner
along with his team wants to make a thorough understanding of the entity
and its environment in order to identify and assess the risks of material
misstatements, whether due to fraud or error. The following are some
of the points identified by them on Day 1.
1. The hotel has two banquet halls. The documentation available for
verification of banquet hall revenue is only the invoice raised by the
hotel and some mail conversations on customer enquiry and
finalizationof price. In audit trail, it is found that finance approval of
the transaction is only after invoice is sent to them for accounting at
final settlement. Advance paid by the clients are not vetted through
finance team.The auditor suspects a weakness in this system.
2. The auditor also finds a control deficiency in the process of
procurement of stores. A goods receipt note is not prepared at the
time of receipt of goods. On enquiry with management, the auditor
finds that there exists a system control wherein goods receipt note is
automatically prepared and approved in the system once the
quantity and price of goods is entered against specific vendor. This
entry is on real -time basis and system does not allow back dated
entries.
3. The auditor enquires of the management as to what is risk
assessment process followed by the entityfor prevention and
detection of risk of material misstatement due to fraud and error. The
auditor finds there is no documented risk assessment process.
With the help of the above facts, answer the following questions by
choosing the correct option.