Awesome performance 🎉🎉

I asked 2-3 questions from Internal Audit too.

Which wasn’t in today’s syllabus.

But your performance was bang on 🙌

Tomorrow’s syllabus:
Internal Audit & SA 610

Lage Raho Mitrooo ❤️

SAE 3420 Revision | CA Final Audit | CA Shubham Keswani (AIR 8)
https://youtu.be/guy3OGWSPms

Today’s Target!

SA 250-299 ✅

Expected Weightage 5-6 Marks.

Lage Raho!!

Perfect MTP to solve before Exams!

Blend of New application based questions & old classic ones.

Definitely take out 3 hrs after your Audit 2nd/3rd Revision & write it.

All the best 👍

Here's a compilation of indirect questions I'd refer on last 3 days before Audit exam in addition to notes.

If you've already marked questions based on earlier revision especially for topics like SAs & Professional Ethics, better to refer that.

I've mentioned instructions also in PDF attached.

TYU --> Test Your Understanding 🙈

Happy Learning 💙

15 mins to go for MCQs Party 🎉

Topics for today:

SA 250-299
Internal Audit & SA 610

Get Ready!!

1. An auditor suspects an Entity non-compliance with environmental laws that can lead to heavy penalty? Suggest.

a. Understand Nature of Act & Circumstances.

b. Determine possible effect on F.S.

c. Discuss with mgt & TCWG.

d. Take Legal advice irrespective impact is material or not.

Legal advice only when impact maybe material.

3. In context of L/Rs, potential effects of inherent limitations on auditor’s ability to detect material misstatements are greater. For which reason?

a) There are many laws & regulations, relating principally to operating aspects of entity that typically don’t affect FS & are not captured by entity’s information systems relevant to financial reporting.

b) Non-compliance may involve conduct designed to conceal it, such as collusion, forgery, deliberate failure to record transactions, mgt override of controls or intentional misrepresentations being made to auditor.

c) Whether act constitutes non-compliance is ultimately matter for legal determination by court of law.

4. Which of the following isn’t a significant difficulty?

A Restrictions imposed on auditor by mgt

B Unavailablityof expected info

C Extensive unexpected effort required to obtain SAAE

D Normal delays by mgt to provide required info.

5. Ms. Kee, the engagement partner of Best Hospitality Limited’s audit team did not perform the necessary communication with those charged with governance over some critical issues identified during the course of the audit. Moreover, when management identified that the engagement partner has not communicated to those charged with governance of the Best Hospitality Limited, they also chose not to communicate. Upon identification of this issue, the personnel charged with governance inquired with management and auditors as to why there was no communication of the critical matters to them.

Upon such inquiry, Engagement Partner contended that it was the responsibility of Management to communicate first, then only the audit team should communicate. However, Management was of the view that they are not liable to communicate to those charged with governance. As an Engagement Quality Control Reviewer, what will be your opinion?

a. The auditor is responsible for communicating matters required by SA 260 to those charged with governance. Also, management has a responsibility to communicate matters of governance interest to those charged with governance. Communication by the auditor does not relieve management of its responsibility.

b. SAs are not applicable to the management and hence the management was not responsible for communicating the same to those charged with governance. Also, as per SA 260, Auditor can only communicate when management has already informed those charged with governance about the matters. Auditors cannot communicate first without management’s communication.

c. Communication by management with those charged with governance of matters that the auditor is required to communicate does relieve the auditor of the responsibility to also communicate them if the management has already communicated. Hence, in the current case Management should have communicated as it was their responsibility.

d. SA 260 requires the auditor to perform procedures specifically to identify any other matters to communicate with those charged with governance which includes matters already communicated by the management of non-material nature. Hence, it was the responsibility of the Auditor to communicate.

Half time 😃✌️

Next Question after 3 mins!!

6. What’s last date to communicate significant deficiencies in Internal Control for audit of Listed Entities?