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 ___________.             

 

  1. management
  2. those charged with governance
  3. external auditor
  4. external auditor and those charged with governance.

Answer: 3

Q:2 The external auditor shall not use the work of the internal audit function if the external auditor determines that:

 

  1. the function's organizational status and relevant policies and procedures do not adequately support the objectivity of internal auditors.
  2. the function lacks sufficient competence.
  3. the function does not apply a systematic and disciplined approach, including quality control.
  4. all of the above.

Answer: 4

 

Q:3 The external auditor shall not use an internal auditor to provide direct assistance if:            

 

  1. There are significant threats to the objectivity of the internal auditor.
  2. The internal auditor is an outside practitioner entity.
  3. Both (a) and (b) above.
  4. None of the above.

Answer: 1

 

Q:4 Management Audit should cover everything that we know as operational audit and, in addition it should also include review of the   

 

  1. adequacy and competence of the objectives, plans, policies and decisions of the top management.
  2. economy, efficiency and effectiveness of business operations.
  3. logical, structured and organized series of procedures.
  4. all of the above.

Answer: 1

 

Q:5 Basic difference between management audit and operational audit is in:  

 

  1. method
  2. level of appraisal
  3. method as well as level of appraisal
  4. neither method nor level of appraisal.

Answer: 2

 

Q:6 Which of the following is true?       

 

  1. Scope of management audit is wider than scope of operational audit.
  2. Scope of management audit is narrower than scope of operational audit.
  3. Scope of management audit is exactly the same as of operational audit.
  4. Management audit and Operational Audit are interchangeable words.

Answer: 1

 

Q:7 The principal reason for under taking a management audit is:          

 

  1. the need for review of efficiency of business operations.
  2. the need for review of economy of business operations.
  3. the need for review of effectiveness of business operations.
  4. the need for detecting and overcoming current managerial defencies in ongoing operations.

Answer: 4

 

CA Final - Paper 3 - Advanced Auditing and Professional Ethics - Chapter 16   

 

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