Last 3 questions were from RTP May’24!

4. While auditing summary financial statements of X Limited, CA C notices that summary financial statements are not accompanied by audited financial statements.

What CA C should do specifically in light of above situation?

a. Evaluate whether summary financial statements are prepared in accordance with applied criteria.

b. Evaluate whether summary financial statements describe clearly from whom or where the audited financial statements are available or the law or regulation that specifies that the audited financial statements need not be made available to the intended users of the summary financial statements and establishes the criteria for the preparation of the summary financial statements.

c. Evaluate whether summary financial statements describe clearly from whom or where the audited financial statements are available and whether these are prepared in accordance with applied criteria.

d. Evaluate whether the law or regulation that specifies that the audited financial statements need not be made available to the intended users of the summary financial statements and establishes the criteria for the preparation of the summary financial statements and whether summary financial statements are prepared in accordance with applied criteria.

Last one to go!

5. In audit report on General purpose financial statements there’s Material Uncertainty related to Going concern section.

Auditor wants to refer this matter in audit report on special purpose financial statements, using which para?

a. MURG Para

b. KAM Para

c. Other Matter Para

d. EOM Para

Today’s target!

SRE 2400/2410

Study well 😊👍

Day 1 CA Final Audit Batch | Jan, May & Sep'26 | CA Shubham Keswani (AIR 8)
https://youtu.be/Fp1bDo7_Crk

MCQs of SRE 2400/2410 tomorrow morning at 10:30 am.

Tomorrow’s target:
SAE 3400/3420

Study well 😊👍

Hi all

MCQs of SRE & SAE 3400/3420

Sorry was stuck with something in morning.

Tonight at 9:30 pm.

Study well 😊👍

Get Ready!

1. CA R has accepted an engagement involving review of historical financial statements of an entity in accordance with SRE 2400. Nothing has come to his knowledge which could cause him to believe that financial statements could be materially misstated. In such a situation, which of following procedures was unlikely to have been performed by CA R?

a. Inquiry about complex transactions

b. Inquiry about suspected frauds

c. Comparing financial information with prior periods

d. Sending external confirmations

2. Which of following statements is most appropriate in context of an auditor performing review of financial statements under SRE 2410?

a. It is, ordinarily, necessary for him to send an inquiry letter to company’s lawyer for corroborating inquiries about company’s litigations.

b. It is, ordinarily, not necessary for him to send an inquiry letter to company’s lawyer for corroborating inquiries about company’s litigations.

c. It is necessary for the auditor to perform other procedures to identify events occurring after date of the review report.

d. It is, ordinarily, not necessary for auditor to obtain evidence that the interim financial information agrees or reconciles with the underlying accounting records by tracing the interim financial information to accounting records.

3. If the auditor’s preliminary knowledge of the engagement circumstances indicates inability to complete review due to limitation on scope of the auditor’s review imposed by management, the auditor:

a. Should accept the review engagement

b. Should communicate this fact to those charged with governance

c. Should not accept the review engagement

d. Both (a) & (b)