Isski limit ek baar Notes mein thik karlena..kuchh copies mein it was wrong ✌️

Half Time 😃🙌

6. While reporting under CARO, 2020, it is duty of statutory auditor of company to report: -

a) Fraud of less than ₹ 1 crore committed by officers or employees of company during the year

b) Fraud of less than ₹ 1 crore committed by officers or employees of company during the year

c) Fraud of ₹5 crore or more committed by officers or employees of company during the year

d) Any fraud by the company or on the company noticed or reported during the year

7. As per CARO, 2020, physical verification of inventory has been conducted at reasonable intervals by the management and whether, in the opinion of the auditor, the coverage and procedure of such verification by the management is appropriate; whether any discrepancies of ___ or more in the aggregate for each class of inventory were noticed and if so, whether they have been properly dealt with in the books of account;

a) 5%
b) 10%
c) 1%
d) 20%

8. Under relevant clause of CARO,2020, auditors are required to report the extent of arrears of outstanding Provident Fund as on the last day of the financial year for a period of :-

a) Exceeding 9 months
b) Exceeding 3 months
c) Exceeding 6 months
d) Exceeding 12 months

9. Which is false regarding communication of “Key Audit Matters”?

a) It is not a substitute for disclosures in financial statements.

b) It is not a substitute where modified opinion is required.

c) It is a separate opinion on individual identified matters.

d) It is not a substitute for reporting under SA 570 when a material uncertainty exists casting significant doubt on an entity’s ability to continue as going concern.

Last one to gooooo!!

10. The description of the auditor’s responsibilities for the audit of the financial statements shall be included:

I. Within the body of the auditor’s report.

II. Within an appendix to the auditor’s report, in which case the auditor’s report shall include a reference to the location of the appendix.

III. By a specific reference within the auditor’s report to the location of such a description on a website of an appropriate authority, where law, regulation or the auditing standards expressly permit the auditor to do so.

a) I,II
b) I,III
c) I,II or III
d) II or III

Thanks for attending today’s session!

Tomorrow’s target:
SQC-1/SA 220

Lage Raho ❤️

If you face Small Co. & CARO applicability confusion.

Check this video: https://youtu.be/gUzd9ZfnSvU?si=32fJcPHYWIZdnQDj