National Management College – Perundurai
CA Intermediate Batch : 2022 – 2023
Gr-2: Paper 06: Auditing and assurance
Maximum marks : 30 Time allowed: 1 hr
Part – I (6 Marks)
- State with reasons (in short) whether the following statement is correct or incorrect:
- Auditor needs to report to Central Government in case of fraud involving 20 cr. Rupees
- Unusual delays by the entity in providing requested information shows problematic or unusual relationships between the auditor and management.
- The Company auditor need not report on the efficacy of Internal Financial controls in his Audit Report in the case of a One Person Company.
Part – II (24 Marks)
- Answer the all the questions
- With respect to audit in an automated environment, explain the following:
(i) CAATS (ii) Data Analytics (iii) Database (iv) Information Systems (v) Privileged access
- In an audit of financial statements of PQR Ltd. CA Suganya finds that the cash receipts have been suppressed. Give examples of such techniques which may have led him suspect this.
- Enlist the instances which induce Management / Employees to commit fraud?
- During the Statutory Audit of a Public Limited Company, XYZ Ltd. its auditor, Mr. Balaji, the engagement partner of Bajaj Chopra & Associates, encounters some exceptional circumstances that bring into question his ability to continue performing the audit while suspecting a fraud arising from material misstatements. Explain the steps to be taken in such a case.
