MCQ for CA Final Audit - Chapter 10 AUDIT OF INSURANCE COMPANY

Sample Multiple Choice Questions (MCQ's) for CA Final - Paper 3 - Advanced Auditing and Professional Ethics - Chapter 10: AUDIT OF INSURANCE COMPANY - For Practice relevant for May/Nov 23 Examinations

 

Q:1 In addition to main audit report, Statutory Central Auditors are required to issue other reports/certificates. Which of the following is not covered within their scope? 

            

  1. Report on adequacy and operating effectiveness of Internal Controls Over Financial Reporting in case of banks which are registered as companies under the Companies Act in terms of Section 143(3)(1) of the Companies Act, 2013.
  2. Long form audit report (LFAR).
  3. Report on compliance with Statutory Liquidity Ratio.
  4. Unit Inspection Reports

Answer: 4

 

Q:2 Long Form Audit report is to be submitted by:          

 

  1. 30th April every year.
  2. 30th June every year.
  3. 30th Sep. every year.
  4. None of the above.

Answer: 2

 

Q:3 The matters which the banks require their auditors to deal with in the long form audit report have been specified by the:       

 

  1. Central Government.
  2. State Bank of India.
  3. Board of Directors of respective banks.
  4. Reserve Bank of India.

Answer: 4

 

Q:4 During stage of initial considerations in a bank audit, which of the following aspect is not covered:              

 

  1. Acceptance & Continuance
  2. Terms of Audit Engagements
  3. Communication with Previous Auditor
  4. Engagement Team Discussions

Answer: 4

 

Q:5 During stage of "understanding the business operations" in a bank audit, auditor is required to obtain understanding of various aspects. Which of the following aspect is not covered?          

 

  1. Bank and Its Environment including Internal Control
  2. Bank's Accounting Process
  3. Risk Management Process
  4. None of the above.

Answer: 4

 

Q:6 During stage of "Risk Assessment" in a bank audit, auditor is required to identify and assess risks. Risks to be identified and assessed include:             

 

  1. Risks of Material Misstatements and Risk of Fraud including Money Laundering.
  2. Risks of Material Misstatements and Risk of Fraud including Money Laundering and Specific Risks.
  3. Risk Associated with Outsourcing of activities and Risk of Fraud Including Money Laundering.
  4. Risks of Material Misstatements, Risk of Fraud including Money Laundering. Specific Risks and Risk Associated with Outsourcing of activities.

Answer: 4

 

Q:7 Which of the following activity is generally not form part of execution stage in a bank audit;

 

  1. Establish Engagement Team
  2. Engagement Team Discussions
  3. Response to the Assessed Risks
  4. Appropriateness of Going Concern

Answer: 1

 

CA Final - Paper 3 - Advanced Auditing and Professional Ethics - Chapter 11   

 

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