MCQ for CA Final Audit - Chapter 15 INTERNAL AUDIT, MANAGEMENT AND OPERATIONAL AUDIT
Sample Multiple Choice Questions (MCQ's) for CA Final - Paper 3 - Advanced Auditing and Professional Ethics - Chapter 15: INTERNAL AUDIT, MANAGEMENT AND OPERATIONAL AUDIT - For Practice relevant for May/Nov 23 Examinations
Q:1 As 610 defines the term direct assistance as the use of internal auditors to perform audit procedures under the direction, supervision and review of the ___________.
- those charged with governance
- external auditor
- external auditor and those charged with governance.
Q:2 The external auditor shall not use the work of the internal audit function if the external auditor determines that:
- the function's organizational status and relevant policies and procedures do not adequately support the objectivity of internal auditors.
- the function lacks sufficient competence.
- the function does not apply a systematic and disciplined approach, including quality control.
- all of the above.
Q:3 The external auditor shall not use an internal auditor to provide direct assistance if:
- There are significant threats to the objectivity of the internal auditor.
- The internal auditor is an outside practitioner entity.
- Both (a) and (b) above.
- None of the above.
Q:4 Management Audit should cover everything that we know as operational audit and, in addition it should also include review of the
- adequacy and competence of the objectives, plans, policies and decisions of the top management.
- economy, efficiency and effectiveness of business operations.
- logical, structured and organized series of procedures.
- all of the above.
Q:5 Basic difference between management audit and operational audit is in:
- level of appraisal
- method as well as level of appraisal
- neither method nor level of appraisal.
Q:6 Which of the following is true?
- Scope of management audit is wider than scope of operational audit.
- Scope of management audit is narrower than scope of operational audit.
- Scope of management audit is exactly the same as of operational audit.
- Management audit and Operational Audit are interchangeable words.
Q:7 The principal reason for under taking a management audit is:
- the need for review of efficiency of business operations.
- the need for review of economy of business operations.
- the need for review of effectiveness of business operations.
- the need for detecting and overcoming current managerial defencies in ongoing operations.
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